Recommendation: Which one of the 3 alternatives discussed for topic 9 do you recommend for the firm? Why do you make that recommendation? What are the risks (think about which stakeholders might be affected)?

Topic 9-

By increasing their online presence, Costco could gain a bigger market share with their online offerings. If they had some of their Treasure Hunt items available for online only sales, they may gain interest by other financial demographics. For example, if they offered cheaper school supplies then the local discount stores, they may see new interest in a demographic that isn’t in their $100,000 income range. A family with five children may save enough money on notebooks to make it worth their while to buy a membership.

Being selective of their online offerings and bringing popular, inexpensive items to a forefront may also bring a new customer base, like millennials. Offering things like energy drinks, ramen noodles, and chicken strips would appeal to a college age demographic and may intrigue them into pursuing membership.

Offering limited quantities of items, only available online is another thing Costco could do. Like their $4.99 rotisserie chicken and $1.50 hotdogs, offering “online exclusive” deals for a limited time or a limited quantity, that may not make Costco much money, or even could cost a little, might be enticing enough to get the attention of new potential members. If they get online to buy the 99-cent dish soap, they may keep looking at the website and add more items to their cart.

The advantages to increasing their online presence would be greater exposure to the organization and their products. Creating a buzz with exceptional deals may bring in new memberships and awareness to their brand. Disadvantages would be the loss of revenue by discounting items.

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I will recommend them to increase their online presence It wil... View the full answer