The Affect of Power and Political Factors on Costco's Business

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Costco Known as Costco Wholesale Corporation is one of the well-known retailers in the world that supplies more than a million quantities of goods in a discount amount meeting customers satisfaction (Lewis, 2009). Costco has it’s own organization polices with the main objective to bring our customers to the most affordable costs on quality brand-name (Lewis, 2009). With many areas around the world like Canada, United states, Australia, Mexico and Japan, Costco provides a wide range of product, Costco has intended to make your shopping experience a pleasurable one in different parts. Costco store regularly supplies grocery store things and an ever-changing choice of other product, including some luxurious goods as well (Lewis, 2009).

The organization's first opened in 1976 under the Price Club name, was in a changed over plane shed on Morena Boulevard in San Diego (Through Its history, Costco has keep progressing, 2009). Initially, Costco started up with small organizations, later on it discovered it could accomplish more better prominent purchasing clout by suppling goods to selected customers of different places (Lewis, 2009). With that change, the development of the distribution centre club industry was making excellent progress so far. In 1983, the first Costco stockroom area was opened in Seattle (Through Its history, Costco has keep progressing, 2009). Costco turned into the primary organization ever to develop from zero to $3 billion in deals in under six years (Lewis, 2009). When Costco and Price Club agreed to launch a partnership firm in 1993, working under the name PriceCostco, they expanded altogether 206 areas in various parts producing $16 billion in yearly deals. Besides that, Costco is regularly considerable for being more representative more than other 500 organizations by hiring employees in reasonable wages and choice advantages (Through Its history, Costco has keep progressing, 2009). The Costco has made a working environment culture that draws into positive, high-energy and skilled representatives.

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Power and political factors partly influence the Costco Warehouse based on its remote or macro-environment. The Costco warehouse has to be concerned about legal rules and political environment before set up their business in respective area and should be ready to deal with local and international outcomes of politics (Political factors affceting business, 2015). The frequent change in the government make up of political factors. The political factors could be:

  • Increase or decrease in tax: Sometimes the government will charge high tax on Costco and lower it for others. The decision will have direct impact on Business. So, Costco must stay up-to-date with such political factors.
  • Political stability: political Instability of a country has become major factor which affect a business. The uncertainty associated with an unstable political environment may decline the investment and pace of Costco’s economic development become economic and political are like a two parts of a coin (Political factors affceting business, 2015). They are interconnected with each other. (HUSSAIN, 2014). Besides that, Political stability can take the form of complacency and stagnation that does not allow competition.
  • Change in regulation: Regardless of whether you like regulations or not, consistence is significant. Keeping steady over the regularly changing rule is fundamental to maintain a competitive edge. If Costco fails to do so, the government will implies penalties and potential legal issue, which could make business fall behind the opposition (HUSSAIN, 2014). So, it’s important to periodically refresh your knowledge about what’s happing and what’s changing.

Besides that, Political behaviour also includes individual factors (personality traits, needs) and Organizations factors (resource change, low trust exist, high performance pressure and the opportunity of promotion) has positive and negative impacts on the Costco Warehouse. Organizations additionally are political structures which give chance to individuals to create profession and hence provide platforms for the declaration of interest and motives (Political factors affceting business, 2015).


  1. HUSSAIN, Z. (2014, june). Can political stability hurt economy? Retrieved from
  2. Lewis, R. (2009). Costco American Comapny. Retrieved from The costco wholesale operation:
  3. Political factors affecting business. (2015, feb). Retrieved from
  4. Through Its history, Costco has keep progressing. (2009, august). Corporate history branches, 26(13), 40.
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The Affect of Power and Political Factors on Costco’s Business. (2022, August 25). Edubirdie. Retrieved June 17, 2024, from
“The Affect of Power and Political Factors on Costco’s Business.” Edubirdie, 25 Aug. 2022,
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