This diagram presents Costco's competitive environment using Porter's Five Forces framework. It evaluates key factors like the Threat of New Entrants, Bargaining Power of Suppliers, Bargaining Power of Buyers, Threat of Substitute Products, and Competitive Rivalry. The analysis highlights Costco's strengths, such as its bulk purchasing power and cost leadership, while also outlining challenges posed by competitors like Sam's Club and BJ's Wholesale Club. The membership model helps mitigate buyer power, and the company’s exclusive products and value proposition reduce the threat of substitutes, positioning Costco favorably in the retail market.
