Budget Store Costco Has Avoided a Court Battle and Can Proceed to Open Its First Queensland Outlet

Summary

Based on the newspaper article “Budget store Costco has avoided a court battle and can proceed to open its first Queensland outlet” which published on April 29th, 2013 12:00AM. This article generally talks about that American retail giant Costco has been successfully got the permission to build up its first store in Queensland. The article presents that though to open a Costco in Queensland has huge expectations and abundant of advantages, however the process of choosing a site is not easy. Costco managing director Patrick Noone said the process involved in building its first Queensland store had been “long and arduous”. “We are looking at two or three more sites already as follow-on,” Mr Noone said. Furthermore, the article still outlines that Costco, which operates more than 500 “membership warehouses” worldwide.

Link back to the knowledge we’ve learnt from Corporate-Level Strategy, based on the part of definition of diversification strategy, a company’s decision to expand its operations by adding markets to existing business, There are tremendous opportunities for future business in expanding consumer markets, such as increase the company’s profile and market share. Costco is operating this strategy which represents that expands its market from its homeland America to Australia, from Sydney to Queensland.

Furthermore, the warehouses are set-up to help small to medium sized businesses cut costs in buying goods for resale, but individuals can also shop there. This is very novel sales mode in Australia. In the premise of quality assurance, the product diversification and market expand will make our product sell well at home and abroad. Diversification is conducive to risk reduction and profitability.

In addition that Mr Seeney argued that the Queensland store is estimated to generate $160 million of turnover in its first year of trade. It can be seen that Costco is a pacific example that using diversification strategy and have an awesome achievement...