Question

Describe Costco's business model.

Answer 1

Costco's business model focuses on providing high-quality goods to their customer at a lower price for the nationally branded and some private company products. Costco has adopted the subscription business model in which if any person wants to shop at Costco's store, he must have the subscription to make purchases. They have to pay 55 dollars per year to get a subscription. Costco's business model's main focus is at increasing the volume of sales and maintaining a rapid inventory turnover ratio. Their business model is working effectively for their firm.

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