Key Trends – Globalisation One of the main opportunities Costco has is more global expansion to specific targeted countries. Although operating in many countries, Costco is heavily dependent on the U.S. and Canadian markets. It still has the opportunity to expand into the Asian and Australian markets where it has a limited presence. Costco has the capability to operate about 100 stores in Taiwan, Korea and Japan combined and about 20 stores in Australia. It currently has 41 stores in Taiwan, Korea and Japan combined and 6 stores in Australia. There is clearly room for further expansion into these regions as well as the opportunity for massive expansion into China and India. When Costco enters another country it does everything in its power …show more content…
Costco does not have an effective social media marketing strategy. Despite using some social media tools such as Facebook, Twitter etc., Costco has a severe lack of presence in the social media world due to an ineffective strategy or lack thereof. Their Facebook page gives very little information about any events or offers available and often directs customers to Costco.com in order to get any proper information about their products. Poor use of social media as an effective form of advertisement has seriously reduced their potential customer base. They need to develop a marketing strategy that can incorporate social media for use in marketing and …show more content…
It is a good way to market and to find out ones target market and is one of the only ways to communicate directly with potential customers. These personal interactions help to build brand loyalty among customers. Costco would also be able to see what customers are saying about their products and find inspiration for new ideas or improvements that would otherwise be missed. With over 600 million active users, Facebook can be used to communicate with a massive audience of potential customers. Costco could use their Facebook page to advertise their products, introduce new products, keep customers up to date on sales and other in-store events coming up. Facebook, Twitter and Youtube are currently the top social media sites businesses use. The benefits to using any type of social media are that many of them are free to use, have a large audience, allows interactions with customers which can improve customer satisfaction and increases traffic to the company’s website. Costco using any of these types of social media networks would be greatly beneficial for their company if they are performed in a professional
In the head competition between the two Costco always comes out on top in the bulk market sector. Both companies have great employee packages and programs which makes people to want to work there. This in turn causes an outstanding overall organizational
Marketing Plan: Social Media Social media, in today’s business world, represents a vital role in how consumers research, learn about, make decisions, and share information about products and services. Studies show that about 60 percent of consumers’ research before buying through multiple sources online and learn about specific brands or retailers through social media sites. (Hazan, & Wagener, 2013). The emergence of the vast social media sites gives businesses an extensive marketing audience in building brand awareness over the web.
Brand: Costco Landing Page: https://www.costco.com/join-costco.html?qid=73479678a8c411ed800b74dd0a1cb826&cjevent=73479678a8c411ed800b74dd0a1cb826 Theme: Membership sales Title: Don’t Miss Your Chance to Save as a Costco Gold Star Member Costco has been helping its members keep their pantries stocked and their wallets full since 1976. This world-famous warehouse club has come a long way since opening its first location. It now has nearly 600 locations in the United States and Puerto Rico and more than 120 million loyal cardholders.
The application of social media is one of the technological factors that have led to the growth of the organization. The company has now turned to the use of the internet to conduct its marketing activities. The company also banks on mobile technology to reach more
PART I: SHORT RESPONSE Directions: Please answer each of the following questions and provide examples from the text, if applicable. Each response should be at least two paragraphs in length and be written in complete sentences. 1. Under what conditions will an employee be likely to perceive that his or her psychological contract has been broken?
1. What is Costco’s current business model and why is it appealing? Costco’s business model is predicated on a best-cost theme. They take the low-priced supplier approach and mix that with creating price of the many stakeholders by targeting on wonderful client service, a severe code of beliefs, treating staff like family, concerning suppliers, satisfying shareholders, and a robust intelligence of environmental place. They need enforced distinctive cost-saving methods in their production, operations, and selling that have allowed them to draw in the foremost affluent customers in discount selling.
Expanding to Asian markets would be a fantastic chance as these consoles have yet to launch in some of these regions(X-box One doesn't launch in China until September 29th). It could grow in number of stores so as to cater more demands of Customers. More gamers are inevitable as the gaming market grows and opening more stores in places will indeed help cater the increasing demands for gaming products with the recent release the PS4/ Xbox-One
When social media first was created amongst the internet big companies like Pepsi, Taco bell or IBM never had social media accounts. It was not until the improvement amongst the internet within smart phones that made people become “internet streaming connoisseurs”. Resulting in people always having their face glued to their smartphone screens using social media apps, surfing the web or just streaming videos. Eventually once big companies created social media accounts to promote their material and keep tabs on their consumer’s interest within their brands the advantage of social media emerges.
In Costco’s macro-environment, a variety of factors could affect the company’s economic viability. External factors such as inflation, foreign currency exchange rates, levels of unemployment, reduced consumer confidence, and changes in tax policies could unfavorably affect the demand for Costco’s products and services. Prices of some goods and services including food products, are often variant and subject to fluctuations deriving from changes in domestic and foreign supply and demand, competition, taxes, labor costs, or delays in delivery which could significantly affect Costco’s sales. Therefore, the product’s costs and selling could also increase affecting financial results. Other important economic factors include the increasing international
Facebook is also used to raise the awareness of their brand. Business to a greater extent uses Facebook's marketing tools to expand. For example, through advertisement and also via pages, businesses can efficiently obtain and retain customers and also raise their brand awareness. In contrast, people can use facebook to discover new companies and also brands or they can also connect with business that they have already know. Facebook's marketing tools are ready for use everywhere.
Market Segmentation: To be of value market segments must be measurable, substantial, accessible, differentiable, and actionable (Kotler & Keller, 2012). Segmentation of demographics for Costco is vast as the current product offerings include all genders, ethnicities, incomes. age groups, and social classes. When considering demographics, it is important to consider the average or typical characteristics of the target market. As mentioned earlier the target market or focus for this company is supplying the small- to medium-sized business and targets the middle- to high-end consumer with its private label brand Kirkland Signature.
3.0 Concepts 3.1 Resources and Capabilities In order to achieve and sustain competitive advantage, a business needs both resources and capabilities. Resources are assets that are owned or employed by an organization. The organization utilizes and uses these assets to carry out their business operations. Resources can be grouped either tangible assets or intangible assets.
Furthermore, research has shown that there is a high percentage of overlap between Amazon Prime and Costco membership holders. Should Amazon take over the grocery marketplace, Costco could see a serious decline in
What are the two types of core competencies that drive a firm’s competitive advantage? Which firms demonstrate a clear competitive advantage because of (a) major value-creating skills/core capabilities and/or (b) superior assets or resources? Which firms have demonstrated sustainable sources of competitive advantage? The two core competencies that drive a firm’s competitive advantage are cost leadership and differentiation.
INFORMATION Social media has to be one of the greatest developments of human history. It has connected humanity like never before. It has changed the way that people do business, with companies providing their own social media accounts to interact in real time with customers. We can quickly see what’s going on in our communities and around the world.