The Assessment of Costco Management Strategy in Chinese Market Based on Supply Chain

With the rapid development of Internet technology, the characteristics of supply chain management (SCM) have been greatly modified owing to prosperous of the E-commerce. Costco, as a well known fast-moving consumer goods (FMCG) company, faces plenty of SCM issues when it enters the Chinese market under the impact of E-commerce. On this basis, we select Costco as a typical case and put forward corresponding suggestions for overcoming the SCM issues under the “Internet Plus” era. Specifically, this paper first summarizes the significance and importance of enterprise, supplier, and consumer management to SCM. Subsequently, as for the case study of Costco, we defined the research scope in China and the research business as a supermarket chain. The research methods include data research and investigation method, directional comparison method, and chart method. Finally, it is concluded that Costco's problems mainly include weak external suppliers, high internal costs, the impact of local consumer culture, and the market competition environment. Therefore, suggestions are proposed in two aspects accordingly: (1) business management; (2) competitors and outer environment. These results offer a guideline for the supply chain management strategy of Costco and similar companies.