Explain and research 5 porter analysis of Costco company.

1. Threats to new entrances: economics of scale is hard to directly compete with Costco. Large investment can be a moderate barrier to start up. Low switching cost is easy for guest to change retailors.

2. Threats of substitutes: strong: high performance to price ratio, high availability of substitute as majority of products aren't unique to Costco, low switching cost: easy for guest to change retailer.

3. Competitive rivalry: strong large number of firm market is saturated with competitors, hight variety of firms competitors can be specialized.

4. Bargaining power of supplier: work big population of suppliers single supplier doesn't affect the business, large supply overall, low forward integration business don't have control over merchandising.

5. Bargaining power of buyers: strong as low switching cost customer can choose where to shop, high availability of substitutes product availability from multi sources, high quality of information internet access to price and options.

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Based on your provided analysis lets break down the Porters Five Forces analysis for Costco 1 Threat of New Entrants Economies of Scale Costcos large ... View the full answer