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SUGGESTIONS

  • Have some budget to expend on advertisement
  • Improve their marketing
  • Start getting some place in the E-commerce world

STRENGTHS

Threats

1. Low Prices: The Cost strategy is to set low prices for your products and sell them in bulk at low prices.

2. Membership Business Model: they charge an annual membership fee of $60.

3. Don’t waste money on advertisement: Costco does not have any budget for advertisement.

4. Expanded Supply Chain: Costco has always had the objective of expanding its supply chain.

5. High Paying Retail Jobs: Costco’s salary to its employees benefits the company among its competitors. $15 per hour.

1. Brand Reputation: Costco have been able to create a positive reputation, and this is why they are the first option to many US citizens.

2. Price Competition: Price competition as a retail store is really important, and you always have to pay attention to your competitors.

3. E-commerce: Costco have been investing millions of money in their internet platforms.

4. Bad economy: this is a more general threat that every business could get affected by.

5. Controversies: Businesses are constantly exposed to controversies.

Costco SWOT Analysis

COSTCO SWOT ANALYSIS

OPPORTUNITIES

WEAKNESSES

Lucia Alvarez Cartamil

Brandon Diaz

Sofia Adorno

Andres Quijada

1. Expansion in more countries (11 currently), Costco opportunity to become larger in their business around the world.

2. Growth of the online sales (electronic commerce)

3. New gasoline project (better price and bonus for members) , most of the people choose Costco as a gasoline station because they have quality product.

4. Product warranty: is the most attractive way to capture the attention of the audience.

5. Develop opportunities to work without a degree

1. Business model: Membership exclusivity and prohibits other shoppers from shopping conveniently at their warehouses.

2. Low profit margins: Low margins leaves very little room for any price adjustments.

3. Many products but a low selection: They carry 4,000 products compared to Walmart’s 50,000.

4. Limited presence: Costco only has 750 warehouses compared to Walmart’s 12,000 (global)

5. Marketing: Costco doesn’t spend much on advertising.

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