Costco – disruption in your shopping cart

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Starting a business that would compete against the likes of high quality businesses such as Woolworths Limited (ASX: WOW) and Coles (part of Wesfarmers Limited ASX: WES) is certainly not on my bucket list.

Both have enviable competitive advantages in terms of their distributive capacity, store network and unrivalled share of mind, established through years of clever marketing and longevity.

However, even the best businesses are not immune to a changing competitive landscape. Today’s incumbents are tomorrow’s memories, especially if they can’t adapt to new competition (we all remember Kodak).

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