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Costco Case Analysis Essay

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Words 456
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Introduction
Costco offers divers item for their customers. Their products vary from food to household furniture to clothing. Even though they offer diverse products, Costco doesn’t have the best sell in each department or some items in some department. The reasons why Costco is profiting in one department and losing in another department differs for each item.

Items
Costco is known for offering products in larger amounts. This can be beneficial or harmful. Listed below have the highest lift or lowest lift.

Solution
The reason why these have a lower lift is because the items come in larger quantities than needed, they have a higher price than a local store or customers aren’t familiar with the items. To solve this problem, Costco can start selling some items that in smaller size. Because some of the items will spoil before the customer uses it completely. This will be a …show more content…
Thus, Costco can lower some of their priced. If Costco do this this, then they might increase their competition to other local stores.

More solution Another reason why some of the items have lower lift is because, some of the products aren’t well known by some of the customer. Because of this reason, customer avoid from buying these items because they are in larger quantity and they aren’t familiar with it. Costco can advertise some of these products on TV and magazines. And I think it would be very helpful of Costco move some of these new items toward the checkout area, so that people would be more familiar with it.

Lift calculations
I think lift calculations are valid for all stores in the United States. These calculations can help stores to improve their products or pricing. Lift calculation tells stores in what department they are profiting and in what department they are losing. With these calculation, the store can hire salesperson to make

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