Costco Case Essay Example

and also to be able to win a sustainable competitive advantage.

It makes business sense that the company will get better productivity from the employees. Also bonuses and benefit packages are also the reasons why people chose the places the work at. A work place that has good health and dental plans will always be the choice of potential employees. This also is one of the reasons why Costco has that many employees. What employees get from the company they are working for is what they will give back in return. This will ultimately reflect in the company’s high sales volume and rapidly inventory turnover.

What recommendations would you make to Jim Sinegal regarding the actions that Costco management needs to take to sustain the company's growth and improve its financial performance?

Due to the fact that the business environment is constantly experiencing changes to meet the prevailing market demands, I will recommend to Jim Sinegal that the management should consider introducing their product to more geographical areas. This they can do by expanding the stores to areas that presently don’t have any around them. There is still a lot of market out there that have not been saturated with retail business.

Costco needs to take advantage of this strategy and open as many stores as possible both at home and abroad. If they intensify their marketing strategy, they will increase their financial performance quickly. Another way for Costco’s Management to improve its financial performance is to introduce new product line and services. Introduction of new line of product and services will always ensure that there will always be something that will keep bringing people into the store. The

idea is to make Costco’s warehouse store a one stop shopping experience for its customers. If almost everything that one needs is found in one store, there wouldn’t be need to want to go somewhere else moreso, if one is getting it at a bargain.