Costco Wholesale Corporation’s Success Case

Currently, large and small sized enterprises are doing business in Korea. Enterprises with various kinds of industries, strategies and timing may succeed and fail in business. This paper investigates the features of successful enterprises, and Costco s strategies for business success. This paper is composed of Costco’s various aspects, that is, Costco s distribution environment, success strategy, and Costco’s problems & solving. Costco gives good quality service in accordance with purposes of foundation. It sells bundles of large quantity with inexpensive price so that customers sometimes feel inconvenience. Costco prevents impulse buying by displaying small number of products and word-of-mouth of good quality product so that customers tend to buy products without time waste. Sometimes, however, the one who is not a member of Costco, it needs inconvenience such as the placing order for same price through agent. When buying on Internet, customers may not buy some kind of product on off-line to have advantage of membership of Costco. When Oxy product boycott campaign was done, customers liked to join not to buy the product at shops taking poor actions. Even some problems and limitation in current situations, Costco has a lot of members in Korea to give good quality services satisfying many members.