Costco Wholesale written analysis

Running Head : COSTCO BUSINESS MODEL

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Date Costco Business Model

In considering the type of business model used by Costco , it is important to first understand the concept of a business model , so as to make a good evaluation of Costco 's business model . Though there is lack of a precise definition for a business model , this refers to the way in which an organization makes money . According to Manning (2003 , there is need for a company to come up with an innovative business model

as an improved way of making money , to ensure that a company stands to enjoy competitive advantage in the market over other business people Established companies in the market have come up with new and innovative business models to compete against the increasing competition , and to fend off insurgents . It has also been the aim of many enterprenuers to find new and innovative business models in to expand their space in the marketplace

The concept of business model is therefore an important unit in putting strategies in place , tailored towards the competitive business environment . It helps both the entrepreneurs and business executives to increase their capability in the management of continuous change and consequently adapt to the gradual changes in the business environment through injection of new ideas in their business model

Costco 's business model contains proper communication and distribution channels to enable the company reach clients and offer them value proposition . This is shown through various outlet stores which...