Auto, health and home insurance, business credit card processing, real estate services – in exchange for a higher Costco Companies, one of the major players in the wholesale club industry, has a new class of membership that offers discounted services developed annual fee (100 $ compared to $ 40). The case raises two questions: 1) how the new membership should be marketed to be, and how much should be spent on the effort? and 2) what are the possible risks and benefits for Costco, which generates $ 22b … Read more »

Auto, health and home insurance, business credit card processing, real estate services – in exchange for a higher Costco Companies, one of the major players in the wholesale club industry, has a new class of membership that offers discounted services developed annual fee (100 $ compared to $ 40). The case raises two questions: 1) how the new membership should be marketed to be, and how much should be spent on the effort? and 2) what are the possible risks and benefits for Costco, the $ 22 billion in 1997 generated sales of products in bulk, to offer services? What question is emphasized depends on whether the case is taught in a marketing or retail price.
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from
David E. Bell
Ann Leamon
Source: Harvard Business School
21 pages.
Publication Date: Sep 14, 1998. Prod #: 599041-PDF-ENG
Costco Companies, Inc. HBR case solution

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