Writing Assignment 2 - The Costco Way(vs Walmart Alyssa...

This preview shows page 1 - 3 out of 6 pages.

The Costco Way (vs. Walmart) Alyssa Davis MGMT 317 March 29, 2013 Writing Assignment 2
Image of page 1
Costco and Walmart are competitors in their industry, offering low prices and great value for consumers. Although they are competitors, they have very different styles as to how they reach the market and create value to draw in their customer-base. Walmart (who operates under slogans like “Always low prices. Always.” and “Save money. Live better.”) creates value for the consumer by positioning themself as the lowest cost retailer, allowing their customers to get more for their money with rock- bottom prices. They do whatever they can to cut costs so they can pass savings onto us, the customers. Costco, however, has a much different approach. They create value by offering bulk items for reasonable prices and offer higher wages than Walmart does. It is said that it is “better to be an employee or customer of Costco than a shareholder” (Holmes & Zellner, 2004). These two different strategies make both companies successful, but the real question is, who is doing better? After reading the articles found on Bloomberg Businessweek and The Wall Street Journal, the answer was clear. Many organizations that skimp on pay, benefits, and working conditions attribute this to the intense competition they face. Does Costco face competitive pressures, and if so, how does their “pro-employee attitude” help them overcome these pressures? Costco is faced with the same challenges that every one of its competitors is faced with. Due to the scrutiny they receive from their high-wage stance on employee compensation, I would venture to say that they might face even more challenges than their competitors at times. But after reading the articles, I found that the way Costco operates actually helps alleviate some of the pressures that they face in their industry.
Image of page 2

Want to read all 6 pages?

Image of page 3

Want to read all 6 pages?

You've reached the end of your free preview.

Want to read all 6 pages?

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern