Financial opportunity of COSTCO and Walmart
COSTCO and Walmart have different financial opportunities due to the different business models. Importantly, COSTCO earns higher profits from membership premiums while Walmart depends on profit margins. The business strategy applied by COSTCO implies that the retailer can sell its products at lower prices compared to Walmart. This aspect gives COSTCO a competitive advantage in the marketplace. The purchasing power of COSTCO continues to increase with respect to its size, which gives the retailer an opportunity to bargain favorable prices and suitable financial condition for its products. Regarding performance, COSTCO has been doing better that Walmart for some years. ...