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Costco has been trying to decrease expenses in order to gain a larger profit margin by making changes within company structure, such as employee costs. Another factor that Costco must be aware of is customer loyalty. Costco's business model is built upon customer membership, who join and renew annually. This directly monetizes customer loyalty as unsatisfied members may not renew and represents a real cost to Costco's business.
Costco has already begun expanding its warehouse empire across the U.S., which has allowed it to gain the majority of the market share from the competition. In the first three quarters of FY2008, Costco opened 18 new warehouse locations around the world, not including four re-locations...
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