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The three vital components of the company strategy are low pricing, limited product selection and high-end products acquired in closeouts and liquidations.
Costco Business Plan
Competitors Sam’s Club and BJ’s Wholesale Club also use the same business model. Retail giants like Walmart also use the cost leadership strategy.
Given its customers are the most affluent of all the warehouse clubs, with average incomes around ,000 and this strategy works well for Costco.
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He's a published author on the subject of entrepreneurship and strategy, Anthony can be found doing keynotes in both French and English.
You can connect with him on Twitter @anthonyctaylor and have him work with your team on your strategy and organizational development.