Question Answer: What is Costco’s Business Model?

Costco’s Business Model
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Costco’s Business Model
What is Costco’s Business Model? Is the company’s business model appealing? Why or why not?
Costco’s business model refers to a business model based on offering customers low prices on goods and services to increase the number of sales, therefore higher inventory turnover. The lower prices are given on only specific goods that are nationally branded and products that have private labels. The business model is based on customer membership, whereby the members renew their membership every year. The renewal of the contract done every year signifies that the customers are loyal and satisfied with the services offered by the business. Costco's business model serves the loyal customers best and main...