Costco- Labor Markets Analysis from ginger195's blog

Costco- Brief Company Profile

Costco Company is attributed to be among the top ten retailers in the world, having been placed at the seventh position(Costco website, 2012). The company was founded by James Sinegal and Jeffrey Brotman in 1983 and has risen to become the fifth largest retailer in the United States of America competing in the same league ofother giants in the industry such as Wal-Mart, Kroger and Target. The company products range from house hold appliances to sporting goods. It is said to produceeverything anaverageman would need under theroof. With a sales volume estimated at over $88 billion and a profit margin of $ 3 billion in the year 2011, Costco has established itself as one of the major forces in the membership warehouses in the United States of America. The headquarters of the company are found at Issaquah, Washington D.C

Current Labor Demand in This Industry

From the statistics gathered about the Costco Company, the current demand for labor in this industry seems to be on an upward precipitated course. The company from Costco database is deemed to have an employee status and numbers in excess of 142,000 both fulltime and part-time employees (Costco website, 2012). The part timers are employed when the season is in peak to help the company cope with monumental demands from its clients all over the state and beyond. With the current expansionist policies of the companies in this industry, it is evident that the demand for labor can only be on an upward trend. With other giants like Wal- Mart stores in the picture, which has an employee base in excess of two million under its chains, the labor demanded in this industry can described as overwhelming (Wal-Mart stores Inc website, 2012).

Current Supply of Labor in This Industry

According to Karakaya and Canel (1998), for this retail market or industry to be in equilibrium, the demand for labor should equate the supply of the same. From the statistics analyzed from the top 100 major wholesalers and retailers in the United States of America, these wholesalers have employed more than  100 million people in the USA and other states in which they operate. Wilson (2012), notes that despite the increased economic empowerment and rapid growth of various sectors and industries in the USA economy, a vast number of people are still wallowing in the miasma of unemployment and poverty. This vice is more evidentamong the ‘less privileged class’ of people: the ones living in the ghetto and costco industry analysis  the so called underclass. Despite the large vacuum in labor demand in the above mentioned industries, people still find it hard to access jobs. The labor supply for the non-skilled type of jobs would behuge and lucrative if the industries could tap personnel from these classes of people.

Government Factor

More often than not, in numerous nations of the world, the government of those nations is charged with the prerogative of deciding which policies to adapt to foster growth of the players in the industries. The kind of policies that the leaders of these nations make influence largely to the way the players in this industry behave.

In this case scenario, the government of the United States, though passing and making of some policies has an influence whether direct or not on the supply and demand of labor in the industry.  The USA government has been very instrumental towards helping many people receivejobs in these industries. The major way this has been achievedis by making sure that the levels of imports are minimized. The utilities that are used by the various government agencies, departments and ministries are bought from the companies situated in the USA. Very little is imported.  This gives a boost to the companies in the state allowing them to have enough resources for expansion, and the latter is directly correlated to increment in the number of employees. The unemployed and able bodied people are encouraged to seek jobs, though menial from these big stores. To enable the stores to employ big number of people, the government sometimes offers them tax breaks. This way, the money that would otherwise be channeled to the government coffers is used for expansion purposes and creating new working places.

The policies that the government creates and implemets are geared towards the promotion of peaceful trading between the state and its neighbors. This peaceful environment enables the stores and players in the industry expand their network and sales into allied states and which  increases the volume of sales. Incrementation in the sales volume is translated to an increased labor force.

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By ginger195
Added Jun 12



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