Comment on SWOT analysis

After reading the SWOT analysis of Costco, please help me to make a short comment about this company.



The Costco shopping experience is a giant among ‘one-stop shopping’ stores. “Costco’s warehouses present one of the largest and most exclusive product category selections to be found under a single roof” (Costco 2004, p2). An individual, family or business representative can enjoy the convenience of shopping for a variety of items from groceries to jewelry and from electronics to office supplies all in one location. Costco sells “top-quality national and regional brands at prices consistently below traditional wholesale or retail outlets” (Thompson, Strickland, and Gamble, 2008, pp. C-5). The prices of the items at Costco are very appealing, especially in the current economy. Items are purchased in bulk which provides a savings to the shopper in the long run.


The Customer Service area at Costco is at the front of the store. When a consumer has an issue at the back of the store a major inconvenience is experienced. While there are people with Costco vests on giving out food samples, they are volunteers; not employees. Therefore, they would be of little assistance to the consumer with an issue at the back of the store.


Costco continues to expand options to its consumers. These options include pharmacy services, photo services and travel services.


Costco has two competitors in the discount warehouse market – Sam’s Club and BJ’s Wholesales Club. “However, warehouse clubs also competed with a wide range of other types of retailers, including retail discounters like Wal-Mart and Dollar General, supermarkets, general merchandise chains, specialty chains, gasoline stations, and Internet retailers” (Thompson, Strickland, and Gamble, 2008, p. C-14). The threats for Costco comes from all angles. By Costco being a large “one-stop shopping” environment, it competes against many businesses who sell the same or similar products.

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