Costco Business and Marketing: Diverse Methods in Marketing

Business and Marketing
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Business and Marketing
This paper will explore how an organization can innovate using diverse methods such as licensing, social media sourcing, mergers and acquisitions, strategic alliances, and franchising. The organization in focus is Costco. Costco has established its market in delivering quality electronics, furniture, jewelry, and other appliances. To diversify their operations, Costco can indulge in several innovative practices that will help grow their operations globally or locally. The company can consider having a licensing agreement with a foreign company that will help them limit their legal and financial risks. The firm can permit another company to use its patents, trademarks, and production techniques in their target country. The company in the target country can also help in technical assistance. This procedure has the potential to give substantial returns on investments.
Another way to be innovative is to establish a strategic alliance to enter a new market. It's a form of partnership that includes contractual agreements between two or more enterprises (Gao, 2021). It states that the parties involved should cooperate in various ways to achieve a common goal. The innovative part identifies the best partnering firm and looks into the benefits they bring to the table. The potential partner can have the skills, expertise, and ability to perform significantly in the new market. Costco can form a strategic alliance that may have tangible and intangible aspects. Costco can benefit from partnering with a local firm that understands the local market or culture and has an existing customer relationship. Strategic alliances and joint ventures will help the parent company in risk-reward sharing, facilitate market entry, joint product development, share technology, and align with government regulations regulations. It will help Costco realize its strategic and competitive goals. The company will also increase its resources, ...