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Essay / Research Paper Abstract
A 5 page paper. Every organization is affected by environmental forces. This essay discusses different factors and forces that affect the retail industry and Costco. The writer comments on how some positive driving forces are also negative driving forces. The essay also discusses the highly competitive nature of the retail industry and warehouse clubs and provides data and information regarding Costco, in particular, including some operational changes being made in the company. Bibliography lists 8 sources.
Page Count:
5 pages (~225 words per page)
File: MM12_PGcstco.rtf
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Unformatted sample text from the term paper:
and demographic. These forces or drivers of change can be viewed as something that must be dealt with or they can be viewed as opportunities to create greater competitive advantage.
They can be viewed as opportunities to innovate. Costco seems to consistently use these driving forces for positive changes. The retail industry "is the second largest industry in the U.S.
by number of businesses and number of employees" (Plunkett Research, 2006). Growth in this industry as been strong, up 6.6 percent in 2005 (Plunkett Research, 2006). The positive forces in
the remote environment affecting growth include the combination of availability of credit with relatively low interest rates to consumers (economic), stable and moderate inflation rates (economic), and a stable employment
market (economic) (Plunkett Research, 2006). Additionally, there the low rates of savings suggests that consumes would rather make purchases than save their money (social) (Plunkett Research, 2006). Some of
these positive forces driving the industry are also negative remote forces. For instance, the accessibility of credit leaves consumers with high debt ratios(economic) (Plunkett Research, 2006). There are also unrelated
negative forces such as the war and the uncertainty that brings (political), soaring energy costs that dramatically increase the amount consumers are paying for gasoline, fuel to heat their homes
and electricity (economic) (Plunkett Research, 2006). This has always been a competitive industry and it is more so today. Every retailer must have a competitive advantage if it is going
to stay in business (Plunkett Research, 2006). Superstores, like Super Wal-Mart, are expanding quickly (Plunkett Research, 2006). Direct marketers, catalogs and Web-based, are succeeding in taking at least some
sales from traditional stores (Plunkett Research, 2006). Those that are Online and offering significant discounts pull even more customers (Plunkett Research, 2006). In fact, Online sales increased by about 25
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