Overview of Costco Wholesale Corporation

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Costco Corporation
Costco Wholesale Corporation is global multi-billionaire dollar operating in ten countries. The company is the largest American membership-only warehouse club in the United States (Farfan). Costco has revealed aggressive retail invasion into global markets outside America. The company acquires significant numbers of consumers in the different countries of the establishment. The secret to the Costco craze involvement in the business world is the use of retail innovation practices that are compatible with the needs of the customers. For instance, the entry of Costco in China was embraced and accepted by a significant population of citizens in the country, leading to improvement in the company's levels of operation and investment.
Although Costco has experienced significant diversity in various countries, the company still faces various competitive advantages and disadvantages in the market. Costco works with various strategies resulting in significant advantages in the highly competitive markets. The company implements the use of low and consistent pricing that enhances low market and advertising costs (David). The investment will low costs results in the realization of tremendous benefits. The use of economies of scale by the company through purchasing of high quantities of commodities from suppliers allows great discounts. Costco uses the tactic of selling most goods in bulk to reduce cost and save on fast inventory turnover as well. Also, the company relies on the high-profit sale of items like automotive centres and pharmacies leading to the realization of high profits. Finally, the company buys commodities from the original suppliers to minimize the cost of supply chains. However, the company faces various drawbacks including; bargain items with high quotations and low prices for goods (David). The issues pose significant challenges to the expansion of the firm.
The main global competitors of Costco include Walmart, Amazon and Home Depot. Although the company is one of the biggest retail brands operating in the United States, the mentioned firms pose high competition to its growth and expansion to various countries. However, the vast growth revealed by Costco escalates the level of the firm to a tough contender in the retail market of America (Pratap). Having competitors does not imply that Costco cannot improve but rather gives the firm a challenge to work harder and cope with all the prevailing challenges in the global market. The high-quality label displayed by the company in various countries enhances its survival despite the existence of stiff competition. Costco has gained popularity in nations like China that embraced its entry and investment. While the international expansion may be limited to the competitors, the company has still managed strong intervention in counties like Mexico and the US and China is no an exception.
Although Walmart is the biggest retail brand competitor in the United States, its present challenges but does not hinder the entry of Costco in China. The latter may face various competition challenges from the well financial stable firm despite the existing challenges in the retail industry. On the other hand, the realization of Home Depot...