Costco is a leading wholesale retailer known for its membership-only warehouse clubs. The company has established a strong market presence with its focus on offering high-quality products at low prices. Costco's business model relies on membership fees, which provide a stable revenue stream. The company's efficient supply chain, bulk purchasing power, and limited SKU strategy contribute to its cost advantages. However, Costco faces challenges such as intense competition from other retailers, the need for continuous innovation in its product offerings, and the potential impact of economic downturns on consumer spending. To sustain its growth, Costco must capitalize on opportunities in e-commerce, international expansion, and diversification of its product range.
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