http://www.quickmeme.com/meme/355sfc

I never thought a design principle from the US Navy would have its place in creating successful businesses. Keeping it simple may be all it takes to implement and explicitly show customers the company’s value proposition.

In response to Florence Fong’s blog post, I think Costco has definitely established itself as one of the ‘go-to’ warehouses for the most basic products needed for everyday life. Costco keeps it simple by striving to drive sales, by providing customers with the options of the most popular brands, ones that we frequently use. This not only decreases the its inventory and turnover rates, but also its ability to invest in other aspects that Costco perceives as more important. Customer service is probably a good way to go when deciding how to allocate your profits.

http://abcnews.go.com/Business/highest-paying-jobs-retail-revealed/story?id=18872950

One idea I received from Wednesday’s class, is the fact that your employees can essentially be the company’s most loyal customers. If they approve of the company’s shared values, and have them in mind, they are like walking billboards, promoting the company to others through the word of the mouth. This can only be achieved if the company values their employees, which is exactly what Costco aims to do, allowing the company to be ahead of the other major competitors in the market.

Read more about it here.