Efficiency, Innovation Offensive

One competitive strategy Costco uses is rebranding, which is an offensive strategy.

They don’t invest in technology, human resources, or even advertising. They focus on
how to satisfy their customers and their employees.
Through consistent rebranding, Costco has been able to stay relevant. The company's
branding strategy aims to maintain a great reputation for customer service, value,
and the sale of high-quality goods. Branding has enabled Costco to establish high
switching costs through innovation. This has been accomplished by a consistent
process of concentrating on the demands of the customers and supplying quality
products, which has resulted in the growth of customer trust. Additionally, Costco
has made sure that their reputation for high quality, affordable rates, and a better
payment plan for employees has stayed firm through effective human resource
management, which also contributes to production efficiency.
Customer responsiveness, Defensive
Another Strategy Costco implements is an efficient way of managing and growing
their customer base. Which is an defensive strategy. They made a lead in the learning
curve, by creating a personal portfolio for their customer membership. Their
members can often enjoy discounts on many products. This way Costco can maintain
their customers and make them into loyal customers. As we know the longer a
customer stays loyal to a company the more profit they can get from the customer.
Efficiency, Defensive
Another strategy Costco uses is the low pricing strategy. Which is also a defensive
strategy. In order to be able to lower the prices, it requires efficiency and the
management of their resources. Costco mainly achieves low pricing through buying a
huge amount of goods at the same time.
Quality, Offensive
Costco has their own private brand called Kirkland Signature. Which is a brand that
focuses mainly on the quality, achieved through constant innovation. This attracts
customers to go to Costco since customers can only get Kirkland in Costco. Which
generates up to 30% of Costco’s revenue.

Competitive advantage
Low price, Loyal customer, great quality