FIRST POST: Hello,
A notable company that recently moved into my city that promotes globalization is Amazon. Amazon is easily one of the world’s biggest e-commerce marketplaces with a global reach covering all defining characteristics of globalism. The Amazon business model covers international, industrial, financial, and technological commerce, which enables it to continue to build a business structure spanning from its main office in Seattle, Washington to Canada, Europe, and Japan. Amazon employs approximately 950,000 workers in the United States alone, according to Business Insider (2021). In an article written in the E-commerce Times, Germain (2021) stated that “three-quarters of Amazon’s new sellers in the top four core Amazon markets of the U.S., UK, Germany, and Japan are based in China. China-based sellers represented 75 percent of new sellers on Amazon as of January 2021. Amazon is also making big moves in the area of technology with its Amazon Web Services (AWS). AWS offers cloud and computing services to small and large businesses as well as to government bodies in different countries.
As far as global action is concerned Amazon has taken a pledge to run a sustainable operation, setting a goal to reach net-zero carbon by 2040 and powering operations with 100% renewable energy by 2025 (Amazon, 2021).
Reference,
Sustainable Operations. (n.d.). Sustainability – US. Retrieved November 18, 2021, from https://sustainability.aboutamazon.com/environment/sustainable-operations#section-nav-id-5 (Links to an external site.)
What Is Amazon Web Services and Why Is It So Successful? (2021, August 12). Investopedia. Retrieved November 18, 2021, from https://www.investopedia.com/articles/investing/011316/what-amazon-web-services-and-why-it-so-successful.asp
SECOND POST:
For this week’s discussion, I would like to highlight one of my favorite stores, even though I am a single mid 30’s male with above average U.S household income. In other words, I am not the typical Costco consumer at least not the one that Costco Whole Corporation targets. Currently, Costco has 823 wholesale warehouses around the globe with 252 of them considered to be international countries include Mexico, Canada, Japan, and South Korea to name a few. Costco as the name we know it today was founded in 1983 before then it was known as price club, then it became Costco-Price Club and finally, in 1997 it dropped Price Club from its name. Price Club first entered the international market in 1992 opening a warehouse in Mexico City. Costco continued to grow its international presence throughout the decade opening its first warehouse in Asia in 1994. Costco at this point Costco- Price Club was one of the largest retailers in the United States. Costco has continued its global expansion opening stores as far away as Australia. With Asia being its largest international market. Asia is also home to some of Costco’s largest warehouses with an Average of 160,000 Sq ft compared to the United States’ average warehouse size of 143,000 Sqft.
Costco’s global expansion is fueled by its number one goal and number one profit driver its Membership. While unlike most retailers Costco doesn’t derive most of its profits from the sale of goods but rather from memberships. It’s this membership that goes for $60 dollars for gold and 99 for executives in the U.S, 42.99 U. S dollars in China for gold, and 32.99 U. S dollars for gold in South Korea. Costco states in its investor marketing material that it has over 100 million users. With a 46-dollar average membership price from three of its key markets for expansion, it is easy to see that Costco only needs to import itself onto the market to make a profit.
Costco prides itself on being a high-volume low inventory leader. Costco offers a very limited selection of products but buys a very high volume of a particular item to resale it to its members. This high-volume approach has created windfalls for some companies around the globe. It cost is offering to stock your product they are not purchasing 100 of your products but rather thousands of your products to be sold at its warehouses around the globe. While each warehouse is unique to its location. Costco’s private label brand can be found in every single warehouse are the globe.
Team, T. (2021, April 16). Costco’s international expansion plans Will Boost Growth. Forbes. Retrieved November 19, 2021, from https://www.forbes.com/sites/greatspeculations/2015/04/17/costcos-international-expansion-plans-will-boost-growth/?sh=28bc7f03a9ec (Links to an external site.).
Costco 10K PDF Commerce. (n.d.). Retrieved November 21, 2021, from https://www.commercezz.com/costco-10k-pdf/ (Links to an external site.).
Corporate profile. Costco Wholesale Corporation. (n.d.). Retrieved November 21, 2021, from https://investor.costco.com/corporate-profile-2.
Why is Costco so successful in China? – travel, dining … (n.d.). Retrieved November 21, 2021, from https://enjoyshanghai.com/articles/why-is-costco-successful-in-china/.