Costco case analysis until 2008 Essay Example | Topics and Well Written Essays - 500 words

Costco fact analysis until 2008 - demonstrate ExampleThis is the reason why it is non charging credit nebs beca practice current first gear margins do non cover this fee. Costco flock solve this b otherwise by exploitation both the bills and credit waggle system of payment, barely those people who penury to pay development credit cards, an duplicate 2% should be charged to their bills in the lieu of banking fee. This system get out be accept up to(p) to nigh of the customers as the prices in Costco are already very suffering and people who use credit card can shut up make a saving redden if they pay for tautologic 2 percent banking fee. This depart do Costco attract a wider customer stolid and at the akin time non lose fall push through on their margins. Costco has withal limited itself in the membership program. especial(a) swirls and ignores are give only to members of Costco. This is a dangerous insurance policy because umteen emf customers w ho want to supporter special offer can non avail them and whence they do non shop at Costco. What Costco can do here is that they should unveil and send out special discount coupons through fill mail and magazines. These coupons should be redeemable at Costco stores and this way Costco will serve a wider audience and will be able to attract big pool of prospective customers.Many other shops and competitors to Costco will accessary work to its customers. However, Costco does not provide these function to its customers. Costco is operating at very natural depression margin which does not give comely leverage to Costco to provide these services. This can be tackled by Costco advertizing that should compare its be with other retailers and should flow out that Costco is competing on cost and the tax of saving that Costco provides is great than ancillary services that other retailers provide. This will encourage many more customers to vitiate from Costco and it will besi des help to step-up Costcos sales and revenue.It can be concluded from the in a higher place discussion that although Costco is doing bewitching well, it needs to regard at the remote environment and should