Crafting and Executive Strategy

Crafting and Executive Strategy
Executive Summary
Costco Aim Statement: "Costco's mission is to consistently offer our members excellent items and services at the lowest feasible prices.”
Costco Unofficial Vision Statement: Costco wants to provide: “a location where effective purchasing and operational principles provide members access to unequaled savings.”
Costco Vision Statement: “Our ambition is that our company stays responsible, resilient, and relevant in compliance with our Mission Statement and Code of Ethics.”
Our approach has been to provide great rates, treat our staff well, and establish trust with our members. While this has always worked for us in the past, it is time to increase our presence in the internet market to face rivals like Amazon and Best Buy.
We now maintain a website that is more of an accessory to our company than a major function. Eventually, we want to use the multiple delivery services to provide everyone a reason to acquire a Costco membership. Our product selections are currently extremely restricted, and we can do more.
We’ll spruce up our website to get started and make it a lot more appealing to the eye. Next, we want to employ our current suppliers and partners in new ways to increase our product choices, such as arranging direct delivery from the facilities we set for them so that we don't have to store those items physically. Furthermore, we are looking at forming joint ventures with other shops. Third-party delivery firms may be used to transport the things we don't presently have in stock to save money. As the last step, we will need to send out direct mailings and meet with our members in the shop to inform them about our new products.
The plan is designed not to incur substantial expenditures other than reorganizing our online presence. We'll be able to maintain our square foot prices low as we grow our product line while also using direct shipment and strategic collaborations. Third-party carriers like FedEx and UPS may be used to reduce delivery costs even lower. Additional income from goods and increased memberships are both possible outcomes of this approach, which is expected to be low-cost and high-benefit.
Finally, we can say that our new "web too.0" program will revolutionize our business model and enhance income without requiring us to put in more effort. The logistics will be the most difficult for us, so we'll roll this out one shop at a time until we have it just right, just as we do with our other locations.
The Vision, Mission, and Values Statement completed in Task 2, part A1
Both the mission and value statements declare what the firm does, which is to provide value to its members and treat all of its stakeholders, both internal and external, in the appropriate manner. It would not be possible to develop a more straightforward set of values that would also serve as the basis for their strategy and everything else they do.
It is a given that one must observe the law, which is a component of a sustainable plan for any organization. When Costco takes care of its workers, the company hopes that those employees will take good care of its customers, encouraging people to shop at Costco again and spend more money. Regarding customer service, Costco excels, as seen by the fact that they provide items of great quality at fantastic costs. Costco needs to take care of its suppliers, which is part of its broader strategy and results in a win-win situation for all parties involved in Costco's business relationships, regardless of where they are located on a SIPOC diagram. Finally, Costco has the goal of rewarding its shareholders, which it does through adhering to the principles and strategy described above, as well as by distributing regular dividends and certain distributions when the company's financial situation allows for it.
Justify the Analytical Tools used in Developing your Strategy
An examination of strengths, weaknesses, opportunities, and threats served as the primary analytical device I used to develop this strategy. Some more complicated models might be employed, but if you want a basic grasp of where a company stands in the market, this research is just what you need. It has all the information that you could need. After reading the study, I concluded that there was only one strategy we could implement to address some of the company's vulnerabilities and dangers. That strategy was to increase our presence online. I came to this conclusion after realizing that there was only one strategy we could implement to address some of the company's vulnerabilities and dangers. The facility also addresses two of our most key possibilities: to develop into the internet sector and increase the things we sell. It does this by allowing us to broaden the range of products that we provide (Baek & Wang, 2018). The room can accommodate both of these possible outcomes. I would have never been able to arrive at these conclusions if I hadn't been able to gain an accurate image of the market area. Research known as a SWOT analysis is one kind of study that might offer you this sort of image.
In addition, I carried out a value chain analysis to determine whether or not the processes that are used by Costco in the manufacturing of award-winning products and services include an excessive number of activities that do not create value. To establish the value of a process utilized to develop a product or service, the primary users of this study are the internal operations management of the company. On the other hand, it is also possible to utilize it from an outside perspective to understand how many opportunities the organization has on the operations side. After completing this study, you will be able to evaluate the leadership to decide whether or not they have the knowledge and the will to act on the information that was discovered. The value chain analysis demonstrated that the company is very good at what it does daily, but its processes had opportunities for value-added activity. It was from this realization that I derived the concept for my strategy.
Include the detailed SWOT analysis from task 1.
Strengths
As it is, Costco has a sizable piece of the market.
Committed workers and members of the company's board of directors.
The Kirkland Signature brand has a strong house brand and supply chain.
Weaknesses
There are a few options available (Average SKU of 3700 products).
The company only serves its members and makes very little money.
A brand's foundation is trust.
Opportunities
Costco's services segment may be used to enter new markets.
Costco can expand its product line and build on its existing house brand.
In the United States, Costco may continue to grow its business.
Create an internet presence.
Threats
Competition from other wholesale clubs.
Competition from online.
Competition from conventional merchants.
Discuss your Plan for Maintaining a Competitive Advantage
According to the findings that I obtained from my countless studies, the part of preserving Costco's competitive advantage that is actually challenging is the trust that is necessary. Customers' trust in the brand and reputation of the firm is the foundation on which Costco's competitive advantage is founded.
If Costco did not have a stronger brand recognition and faith in that brand, then all that they would have to provide is things at low prices, which is something that the majority of their competitors already do. When a new retail location is being established by the company, the process is carried out in a methodical and painstaking manner (Fang et al., 2022). The shop in question is not opened to the public until the corporation is satisfied with its performance. They run the risk of betraying the trust that they have worked so hard to earn every time they deviate from what I would call their "competitive advantage area." For instance, it would ...