Business model of Costco

Business Model of Costco:

How Costco makes money?

Business Segments of Costco:

United States:


Other International Operations:

Costco Merchandising:

Food and Sundries:


Fresh Foods:



Costco E-commerce operations:

Costco’s Competitive advantage:

Lower pricing:

Organizational culture and HRM:

Private label brand:

Product Quality:

Strong customer loyalty:

Supply chain and inventory management:

Financial Performance of Costco over the last two years

Five Operational Performance Objectives



Analysis of Costco’s Operations based on the 4Vs model:

  • The volume of the products and services produced
  • Variety of products and services produced
  • Variation in the demand for products and services.
  • Degree of visibility that customers have of the production of products and services

The volume of products and services:

Variety of processes (products and services produced):

Variation in demand of products and services:

Visibility of processes:

A Few Last Words about Costco’s Business Model:




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Abhijeet Pratap

Abhijeet Pratap

Blog editor and founder

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