The Internal Analysis for Costco in US Research Paper

The Internal Analysis for Costco in US - Research Paper Example The corporation currently operates approximately 387 warehousing-shopping clubs in United States. This has played a great role in creating trust among the target market an aspect that has increased the corporations resources (Costco wholesale, 2010). Another resource that Costco is proud of is the brand name. The corporation has been able to invest heavily in its brand name. This has been through intense advertisement in order to familiarize the name with the market. As a result, the brand name acts an important asset that the company owns. In addition, the brand name plays a great role in the market as it is one of the resources that are used in the market as a competitive tool. The reputation that the company holds in the market plays a great role in ensuring that the corporation remain one of the most competitive wholesalers in the market (Hoovers, 2012). The Corporation has put great emphasis on improving its technology which is a great resource. With the current changes in techn ological level, companies must work hard in an attempt to remain competitive. As a result, the corporation keeps on reviewing its technology in order to install the current technology. This has enabled the corporation to keep on satisfying the interests of consumers and aspect that has created customer loyalty towards the products (Hoovers, 2012). Costco wholesale has high qualified personnel. These are able to read the market behavior and identify any changes that might occur in the market. The personnel working as a team are also a great resource that the company has as it is able to solve any challenge that may lead to collapse of the wholesale (Hoovers, 2012). Capabilities Costco Corporation has the ability to sell its products at a low price. Since the corporation has spread its risks through diversification of its operations, the corporation is able to reduce its profit margins in some of its branches and still able to sustain its operations. This has also been supported by us e of machinery in its operations an aspect that has reduced the overall cost of production therefore, lowering the breakeven price. This provides an opportunity for the company to attract more customers and maintain the existing customers. This has made Costco competitors e.g. AutoZone, Inc, Big Lots, Inc etc unable to keep up with Costco’s level of competition. In addition, the corporation keeps low prices through purchasing high quantities and not making up any product more than 15%, less than the typical 25% at the supermarket and 50% at the departmental store. Costco is able to make up for the low margins through charging fifty five dollars annual membership fee. Approximately 90% of its members renew their membership each year thereby making the Corporation to be profitable (Logan, 2012). The corporation has the ability to produce brand that can compete in national levels. Due to its skills, technology and experienced personnel, Costco has the ability to come up with new brand, which will be supported by the financial ability of the corporation to penetrate, position and segment the market. This has been indicated by the introduction of Kirkland Signature which was mainly aimed at competing with other national brands through lowering the prices of the commodity while maintaining quality. Core competences The corporation h