Costco as we know it today is made up of the Costco Wholesale Company and a merger
Question:
Costco as we know it today is made up of the Costco Wholesale Company and a merger with The Price Company in 1993. The Price Company pioneered the membership warehouse concept. In terms of value innovation, this means:
a. The company introduced a new line of products to sell in a retail setting than had previously been offered in the same store together, adding differentiation in the retail industry.
b. The company enhanced the buying experience through differentiation with a higher level of customer service that included plush lounges, speed checkout lines for exclusive members and an always-in-stock guarantee.
c. The company was able to push the efficiency frontier – lowering costs by selling in a warehouse environment and improving value by introducing memberships as a differentiation in the retail industry.
d. The company redefined the retail market and entered into a blue ocean strategy inherently changing the way customers shop for food, clothing, furniture and electronics so that it would not have to compete with anyone.
Discrete and Combinatorial Mathematics An Applied Introduction
ISBN: 978-0201726343
5th edition
Authors: Ralph P. Grimaldi