Question

What is Costco's business level/competitive strategy and what are it's major elements? Explain.

Answer 1

Costco's business-level strategy is cost leadership. This strategy involves having the lowest prices conceivable. Retail titans like Walmart also use the cost leadership strategy. Costco's strategy also connects the membership warehouse club business model to distinguish it from other retail companies.

The key elements of Costco's strategy are ultralow rates, a confined assortment of nationally branded and private-label goods, a “treasure hunt” purchasing environment, mighty importance on low operating expenses, and continuing extension of its geographic network of store locations.

Sincerely request you to please give me an upvote. Thanks in advance.