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| Topic: |
Business
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| Number of pages / Number of words: |
6 / 1420 |
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With the introduction of their own signature brand, Kirkland Signature, members are allowed to purchase name brand quality at a lower price on many different products including batteries and soda. The strength of the name and the number of members makes Costco a very strong retailer.
WEAKNESSES: The high rate of pay and lower than low pricing strategy is threatening to Costco because stockholders don’t want to back a company that doesn’t want to maximize profits...
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Some feel that Costco puts its customers first, then employees, then vendors, and then finally shareholders. (Herbst, 2005) This could lengthen the time that the stock price rises, due to lesser stock purchases. Another weakness is the low pricing strategy that has been imposed. There is very little profit being made on each item, maybe 15% over cost, but Costco claims that they are making up for it in volume...
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