Swot Analysis Costco Wholesales

‘Costco wholesales’ is a subscription business model that gives low prices of products to attract the customers. James Sinegal, the former CEO of Costco, and Jeffrey H. Brotan opened its first store in Seattle, Washington, on 1983. Costco only have almost 35 years of history, however, it now has about 174,000 employees and 81 million membership members. It located at 600 different area, and earn $93 billion in annual revenue. Among existing markets in the United States, we pick out the Walmart and the Target as the biggest competitors. Costco’s main target is the old who lives in suburban, wants to save money by a bulk purchase, but also have a storage to save an extra item . They offers various types of services not only to the customers but also to the employees, also they made their own product called, ‘Kirkland signature’. …show more content…
” (2012. Pearson Education, Inc.) Costco has the weak matrix organizational structure compromise of a functional structure and a secondary divisional structure. Costco put the employees in groups based on a business functions, like a marketing and an accounting through the functional structure. Further, business components of Costco are grouped based on location or market.
The current CEO of Costco stated that to constantly offer high quality of goods and services to Costco members with the lowest prices, they need to administrate the company with the following Code of Ethics: 1. Obey the law 2.Take care of our members 3.Take care of our employees 4.Respect our