SWOT Analysis
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Transcript of SWOT Analysis
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Presented by Angel Fion Neil Pita& Stephen FJU English Dept. Business Commnucation
SWOT Analysis
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Introduction
• A membership warehouse club
• Founded in 1983, Seattle
• The fourth biggest general retailer in the United States, after Wal-Mart, The Home Depot, and Kroger.
• 132,000 full- and part-time employees
• 51.8 million members
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Locations
• Costco has 543 locations around the world.• 398 in the United States and Puerto Rico • 75 in Canada • 31 in Mexico • 20 in the United Kingdom • 8 in Japan• 6 in South Korea • 2 future locations in Australia • 5 in Taiwan• Kaohsiung(1997)
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• Business Philosophy• Product Strategy Fion Wu
• Store Philosophy• Membership Neil Chen
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Business Philosophy
Our Operating Philosophy Is Simple• Keep costs down and pass the savings on to
our members. • Our large membership base and tremendous
buying power, • combined with our never-ending quest for
efficiency, • result in the best possible prices for our
members. - Quoted from COSTCO website
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Product Strategy• Choose the most popular brand of each
category • Bulks Size Sale• Import New Products• Promotion
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賣場的經營管理 Store Philosophy
• 所有商品以原運送棧板的方式進貨並陳列於簡單的賣場環境。 Simple Display
• 提供會員安全整潔的購物空間,走道寬敞、舒適。 Big, Safe, Comfortable Shopping Space
• 商品的處理,有關溫度控制及衛生均有嚴格控管。 Strict Control on Conditions of Products Serving • 儘可能的提供給會員更多的免費服務,例如:免費輪胎
安裝 / 平衡服務,免費視力檢查 / 鏡架調整服務, 免費停車。
Offer as more services as possible to our customers • 賣場採自助式,並使用紙箱而非塑膠袋包裝商品。 You have to help yourself ; Offer paper box and
Reduce unnecessary plastic pack.• 微量的廣告文宣。 Few DMs
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Membership
• Membership would compromise COSTCO the operating cost and administrative cost and lower down the products price they offer to the customer, usually lower than the competitors
• You pay for the membership annually. The more you shop here, the more you get.
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Strength & Weakness
Angel Chang
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Strength
I. Diversified products and services
II. Strong market position
III. Low cost promotion and marketing strategy
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Strength
I. Diversified products and services • Various national brand
• Private label Kirkland
• Various services
ex: self-service gasoline stations at a number of US and Canadian locations
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Strength
II. Low cost promotion and marketing • the 4th largest retailer in the US
• the 8th largest in the world
• ranked 29th in the Fortune 500 list of America's largest corporations based on sales
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Strength
III. Low cost promotion and marketing strategy
• conducting direct mail marketing
• new members follow on from word of mouth advertising
Gold star member card
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Weakness
I. Concentration of operations in Californian market
II. Lax quality control
III. Weak compliance function
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Weakness
I. Concentration of operations in Californian market
• increasing unemployment levels
• increased prices of food and energy
• declining housing prices
• natural disasters
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Weakness
II. Lax quality control
• several product recalls
III. Weak compliance function • failed to properly compensate employees for
overtime work
• improper bonus formula relating to overtime pay
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Opportunities & Threats
Pita Chen
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Opportunities
• Growing demand for private label products:
Kirkland
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Opportunities
• Expanding market presence:
Year 2006: opened 25 warehouses
Year 2007: opened 31 warehouses
Year 2008: plans to open 35 warehouses
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Threats
• Increasing competition:
Wal-Mart, the largest retailer in the world
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Threats• Increasing competition:
low cost operators sell single category or a constricted range of products
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Threats
• Lower consumer confidence:
Owing to weakening labor market and harder borrowing standards
A decline in consumer confidence could adversely affect Costco's revenues.
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References
• www.datamonitor.com
• www.costco.com.tw
• http://en.wikipedia.org/wiki/Costco_Co.