Costco Case Study

Document Type:Case Study

Subject Area:Marketing

Document 1

The external setting of each and every company constitutes of two major areas which are the micro and the macro environment (Minahan et al. The micro factors of that affect the Costco Company operations are inclusive of competition, suppliers, market structure, customers and market trends. The macro environment usually constitutes of the external and also uncontrollable factors that affect the decision making of the company, strategy and performance. These factors are inclusive of technological, social, legal, political and economic factors. Beneath these factors will come the environmental forces, demographics and corporate social responsibility forces. Additionally, the goals and strategies of the company indicate that the offers are all the time availed at the Costco company stores to the members. If the company continues with its present strategies and objectives, where will it be in five years? If the company continues with the same strategies and objectives, it would be having a stronger market leadership in five years.

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This would mean increased sales hence a better performance of the company in the market (Shih, Yu, & Yen, 2015). Costco will have grown stronger and the shareholders will be highly happy seeing the profits increase. If you were the CEO of the company, what strategies would you recommend, and why? If I were the CEO of the company I would recommend the various strategies, including: • Keeping the customer in mind – The effectiveness of a business will work well where the interests and the needs of the consumers are well evaluated. Through the competitors trying to lower the production cost, it may be able to sell its products at reduced prices at the marketplace. So long as the attained selling price could be close or equal to the price in the market, then competitors may enjoy bigger profits because of what is referred to as economies of scale (Minahan et al.

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