abhishreshthaa
Abhijeet S
Pest Analysis On Costco : Costco (NASDAQ: COST), is the largest membership warehouse club chain in the United States. As of July 2009[update] it is the third largest retailer in the United States and the ninth largest in the world.[1][2] As of October 2007[update], Costco is the largest retailer of fine wine in the world.
Costco is headquartered in Issaquah, Washington, United States[4] and was founded in Kirkland, Washington[citation needed] with its first warehouse in nearby Seattle.[5] Costco has locations in the United Kingdom, Canada, Australia, Mexico, Taiwan, South Korea, Japan, and the United States.[6]
Founded by James (Jim) Sinegal and Jeffrey Brotman,[7] Costco opened its first warehouse in Seattle, Washington, on September 15, 1983.[8] Sinegal had started in wholesale distribution by working for Sol Price at both FedMart and Price Club. Brotman, an attorney from an old Seattle retailing family, had also been involved in retail distribution from an early age. Sol Price died on December 14, 2009 at 93.[9]
In 1993, Costco merged with Price Club (called Club Price in the Canadian province of Quebec). Costco's business model and size were similar to those of Price Club, which was founded by Sol and Robert Price in 1976 in San Diego, California.[5] Thus, the combined company, PriceCostco, was effectively double the size of each of its parents. Just after the merger, PriceCostco had 206 locations generating $16 billion in annual sales.[10] PriceCostco was initially led by executives from both companies, but then Sol and his son Robert Price founded Price Enterprises and left in December 1994.[5]
Prior to the 1993 Price merger, Wal-Mart founder Sam Walton wanted to merge Sam's Club with Price Club.[11]
The first Price Club location was opened in 1976 in an old airplane hangar,[5][10] previously owned by Howard Hughes, and is still in operation today (Warehouse #401 located in San Diego).
In 1997, the company changed its name to Costco Wholesale and all Price Club locations were rebranded Costco.
Utilizing PEST Analysis
In order to analyse the environmental aspects of ReignCom, PEST analysis will be used. PEST Stands for Political, Economic, Sociocultural and Technological factors that influence Argyle’s overall performance in the market place.
Political Sector
A company will not be able to gain success, good reputation and trust if it will not consider legal and political sector as part of their strategy. Thus, ReignCom has been able to follow the principles of business ethics. Hence, the company considers legality in all their actions. They make sure that all their products and services adhere to the standards and wills satisfy their client worldwide. Politically, the company had been able to follow all the standards set by the Chinese country and other international organisation satisfies their customers.
Economic Sector
Economically, it can be said that throughout the years, ReignCom had enjoyed being at the top of its competitors. The economic status of ReignCom is highly remarkable that it always give its consumers the best and quality products and services in the two business divisions. In addition, the company’s growth and expansion on different countries in the world is an obvious evidence that ReignCom has been able to have a stable economic capacity to sustain and maintain its competitive position in the market place.
Sociocultural Secto
Culture is an important factor in understanding an industry, because for any organization to operate effectively it must for some extent have a general set of believe and assumptions on how culture will influence the productivity and the success or failure of any company. Culture environment is one of the important principles that influence the organization. (1991) identifies that there are four dimensions that differentiate cultures at a national level (power distance, individualism-collectivism, masculinity-femininity, uncertainty avoidance), which help to understand that people arrive to organizations with their own national culture. In ReignCom, the management sees to it that they value the opinion of their employees no matter what is their nationality. Since, this company is competing globally; it cannot be denied that they need employees from different cultures to be in the company to help in the decision making. It is also indicated that the international managers has been able to create a positive relationship in the local managers. Moreover, the management of the company has seen to it that they would be fair in treating all their employees. In addition, as mentioned earlier, the company sees to it that their social commitment is being achieved by satisfying the consumers with their quality products and services in aviation and special material industries. Herein, the company values the consumer by knowing their demands and providing their demands and in MP3 manufacturing and special material products. The business division of ReignCom has been able to make the company more competitive. Moreover, with the ReignCom core mission to provide customer satisfaction is also given emphasis. Accordingly the company’s mission and vision can only be achieved if and only if they would focus immensely on satisfying their customers and clients. ReignCom had many consumers all over the world and the company is succeeding due loyalty given by their target market. To be able to serve their customer and clients better, ReignCom have initialize a strategy which includes a set strategies that greatly influence the whole corporation in achieving its goal.
Technological Secto
The complexities of achieving business success through increased efficiency, effectiveness and competitiveness, combined with innovative applications of modern technology, has heightened the awareness of both Technology and business managers towards more strategically oriented approaches for planning and management of any industry (1993). ReignCom has been able to use technological advancement for creating new and innovative products and services needed by its customers may it be from the aviation or the special materials business. Part of this is their utilization of modern technology in producing new products that will meet the demands of their target market. They also use the purpose of information technology by creating their own website to let their consumers have an easy access of knowing the company and the products and services that the company has made for them. An industry is a group of firms that market its products closely substituted from each other.
Costco is headquartered in Issaquah, Washington, United States[4] and was founded in Kirkland, Washington[citation needed] with its first warehouse in nearby Seattle.[5] Costco has locations in the United Kingdom, Canada, Australia, Mexico, Taiwan, South Korea, Japan, and the United States.[6]
Founded by James (Jim) Sinegal and Jeffrey Brotman,[7] Costco opened its first warehouse in Seattle, Washington, on September 15, 1983.[8] Sinegal had started in wholesale distribution by working for Sol Price at both FedMart and Price Club. Brotman, an attorney from an old Seattle retailing family, had also been involved in retail distribution from an early age. Sol Price died on December 14, 2009 at 93.[9]
In 1993, Costco merged with Price Club (called Club Price in the Canadian province of Quebec). Costco's business model and size were similar to those of Price Club, which was founded by Sol and Robert Price in 1976 in San Diego, California.[5] Thus, the combined company, PriceCostco, was effectively double the size of each of its parents. Just after the merger, PriceCostco had 206 locations generating $16 billion in annual sales.[10] PriceCostco was initially led by executives from both companies, but then Sol and his son Robert Price founded Price Enterprises and left in December 1994.[5]
Prior to the 1993 Price merger, Wal-Mart founder Sam Walton wanted to merge Sam's Club with Price Club.[11]
The first Price Club location was opened in 1976 in an old airplane hangar,[5][10] previously owned by Howard Hughes, and is still in operation today (Warehouse #401 located in San Diego).
In 1997, the company changed its name to Costco Wholesale and all Price Club locations were rebranded Costco.
Utilizing PEST Analysis
In order to analyse the environmental aspects of ReignCom, PEST analysis will be used. PEST Stands for Political, Economic, Sociocultural and Technological factors that influence Argyle’s overall performance in the market place.
Political Sector
A company will not be able to gain success, good reputation and trust if it will not consider legal and political sector as part of their strategy. Thus, ReignCom has been able to follow the principles of business ethics. Hence, the company considers legality in all their actions. They make sure that all their products and services adhere to the standards and wills satisfy their client worldwide. Politically, the company had been able to follow all the standards set by the Chinese country and other international organisation satisfies their customers.
Economic Sector
Economically, it can be said that throughout the years, ReignCom had enjoyed being at the top of its competitors. The economic status of ReignCom is highly remarkable that it always give its consumers the best and quality products and services in the two business divisions. In addition, the company’s growth and expansion on different countries in the world is an obvious evidence that ReignCom has been able to have a stable economic capacity to sustain and maintain its competitive position in the market place.
Sociocultural Secto
Culture is an important factor in understanding an industry, because for any organization to operate effectively it must for some extent have a general set of believe and assumptions on how culture will influence the productivity and the success or failure of any company. Culture environment is one of the important principles that influence the organization. (1991) identifies that there are four dimensions that differentiate cultures at a national level (power distance, individualism-collectivism, masculinity-femininity, uncertainty avoidance), which help to understand that people arrive to organizations with their own national culture. In ReignCom, the management sees to it that they value the opinion of their employees no matter what is their nationality. Since, this company is competing globally; it cannot be denied that they need employees from different cultures to be in the company to help in the decision making. It is also indicated that the international managers has been able to create a positive relationship in the local managers. Moreover, the management of the company has seen to it that they would be fair in treating all their employees. In addition, as mentioned earlier, the company sees to it that their social commitment is being achieved by satisfying the consumers with their quality products and services in aviation and special material industries. Herein, the company values the consumer by knowing their demands and providing their demands and in MP3 manufacturing and special material products. The business division of ReignCom has been able to make the company more competitive. Moreover, with the ReignCom core mission to provide customer satisfaction is also given emphasis. Accordingly the company’s mission and vision can only be achieved if and only if they would focus immensely on satisfying their customers and clients. ReignCom had many consumers all over the world and the company is succeeding due loyalty given by their target market. To be able to serve their customer and clients better, ReignCom have initialize a strategy which includes a set strategies that greatly influence the whole corporation in achieving its goal.
Technological Secto
The complexities of achieving business success through increased efficiency, effectiveness and competitiveness, combined with innovative applications of modern technology, has heightened the awareness of both Technology and business managers towards more strategically oriented approaches for planning and management of any industry (1993). ReignCom has been able to use technological advancement for creating new and innovative products and services needed by its customers may it be from the aviation or the special materials business. Part of this is their utilization of modern technology in producing new products that will meet the demands of their target market. They also use the purpose of information technology by creating their own website to let their consumers have an easy access of knowing the company and the products and services that the company has made for them. An industry is a group of firms that market its products closely substituted from each other.
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