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Costco Company Essay

650 Words3 Pages

Introduction
Costco Wholesale Corporation is a multi-national membership warehouse club, that specializes in providing items to its members at favorable prices. The company has a vision of making its shopping experience unique and highly regarded. Boasting a variety of stock, Costco prides itself on accessibility to particular departments and the provision of benefits to its members. The company’s operating philosophy has been simple – keep costs down and pass the savings on to its members. Costco’s large membership base and tremendous buying power, combined with a never-ending quest for efficiency, result in the best possible prices for its members.
The first Costco warehouse location opened in Seattle in 1983, becoming the first company …show more content…

They are dedicated to sustaining a high level of quality with warehouses containing around 4,000 stock stock-keeping units, unlike the majority of supermarkets that have 30,000. Their cautious decision-making process for stock, centered around: quality, price, brand, and features, allows the members to feel the value of what the company can offer. They believe in having an entrepreneurial spirit, to define their staff across all departments, with everyone striving towards the same goal of surpassing the members’ expectations. Costco is widely recognized for showing a high level of care towards employees in comparison with other Fortune 500 companies. They offer fair wages, along with attractive benefits, which is evident in the company’s positive workplace atmosphere, of creating positive, high-energy, talented …show more content…

Commonly, the company’s membership fees would surpass its total net income. Consequently, Costco’s business would operate on just under a break-even basis globally. This was evident with Costco’s remarkably competitive pricing strategy in comparison to the prices their members would be paying when making purchases at other stores.
Additionally, an important aspect of Costco’s business model would be its high volume of sales and quick turnover of inventory, facilitating its sales and receipt of cash for inventory before being required to pay their merchandise vendors – including when vendor payments were made advantageously early, achieving discounted prices. Therefore, rather than having to uphold a large working capital to enable suppliers’ timely payments, Costco was able to invest a significant portion of its merchandise inventory through payment plans those vendors

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They also opened at around the same time, not really that long ago compared to other stores. They are both very similar to each other, but have a few differences. Costco’s first warehouse opened up in Seattle, 1983. In 1993, Costco actually struck a deal with Price Club to combine stores. They named the stores PriceCostco.

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Exclusivity to members: As we all know, Costco are the membership system. This system allows exclusivity to members, and exclude other shoppers. It restricts the shoppers shop easily. Even there are more than 81.3 million cardholders, not everyone has the cards. For example, there are many tour groups come to California, especially Chinese tour groups.

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The short answer to this common question is yes. Costco sells food and drinks, health and beauty products, clothing and accessories, jewelry, toys, furniture and home goods, and even electronics and appliances. Because many of these products come in bulk sizes, Costco offers great savings in addition to high quality. This warehouse club offers deals on many national and regional name brands online and in its warehouses. Additionally, this retailer sells its Kirkland Signature products.

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Costco Wholesale Corporation strives to grow and expand through their competitive retail and pricing strategies in their market. As a retail firm, Costco depends on cusumer purchasing capacities (Gregory 2015). Costco offers a limited number of items that are afforadable quality services and goods to their consumers and believes it aids to their continued growing and expanding success. Costco is driven by cost leadership for their retailer store because they would rather maintain the lowest prices possible which enable customers to return. Costco largely relies on their pricing and retail strategy to continue sales and organization success.

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Introduction The Price Club was Costco’s first location, which opened in 1976. The company started in a converted airplane hangar and started off as a small business. By changing its selected target from business members to families and seeing the potential growth of the business, the small business was transformed into a warehouse industry. The first Costco warehouse was opened in Seattle in 1983.

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As the leader of America retailer industry, it has been the trend of customers shopping. The company’s name become popular among customers and presence of Costco is stronger than others. For example, they are trying to expand their digital presence (Puget Sound Business Journal, 2014). Expansive supply chain: This aspect will express the ability to relate with firms, it will expand the scale of business.

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PRICE CLUB and COSTCO more than the current market for the merger of the two stores. PRICE CLUB for the world's first member of the wholesale and retail stores, was founded in 1976 in San Diego, California, initially to serve small businesses, and later to serve the wider consumer masses, they are open for a group of each purchase , And the first COSTCO stores in 1983, was established in Seattle, Washington, in its business just six years, the annual turnover from 0 to grow to 3 billion US dollars. The two companies merged in 1993 to become PRICECOSTCO and in 1998 they changed their name from Pleasant to Costco Company

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Meaning that Costco purchases straight from the manufacturer and then has the merchandise transported to a cross-dock warehouse that will then truck to the stores. In addition Costco believes in paying its employees a higher wage because that equals happier employees who take their work seriously. Higher wages also mean that Costco will employ a higher quality employee from the preexisting pool of candidates that retail chains compete

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Question 1 Costco is a membership warehouse and committed to bringing members low prices, and quality name brand merchandise. The first Costco was established in July 1976 by a man named Sol Price and his son Robert Price. Costco was a price club before it extended into a warehouse. Nevertheless, the Costco Inc became the number warehouse retailer in the United States building relationships with customer and showing true dedication. Costco does not spend a great deal of money in marketing it is usually through word of mouth.

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I walked to Costco it's, my favorite supplier I came to a halt when I realized that I didn't pick up a flyer I gripped my cart tightly and sped past aisle seven I finally made it to the food court and it smelt like heaven I glanced at some signs and they informed me about the sales I also checked my phone and my mom said "Pick up four pales" I raced to the checkout to get a good spot in line I was told that my membership expired so I had to pay fine I am officially broke from all the money I had to spend

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Large numbers of customers 2. Many deals and discount are offered 3. Both Customers and sellers get amazing discounts and sellers are able to increase sales.

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Next, the cost-leadership strategy involves the creativity for the customer by adding value to the same product. The drawback to a cost-leadership strategy is the product is sold at a much lower price. Lastly,

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