ipl-logo

Costco Executive Summary

691 Words3 Pages

Identification of New Product or Service Costco is now selling products in China via the Chinese marketplace at Tmall. Their competitive business strategy has given them an opportunity to break into the Chinese marketplace. Costco has taken the time to build long-standing relationships with the Chinese that has enabled them to use a no frills way of doing business in China. Costco is the world’s third largest retailer. They are now selling their Kirkland Signature brand that is as popular as many other large product producers in American chain stores to the Chinese. Analyze the Quality of Costco’s Existing Projects Costco spent many years building relationships with the Chinese and earning the trust of the Chinese government. The …show more content…

Many Costco members conduct online price comparisons before buying. The Internet is such a valuable consumer tool and opens the opportunity for Costco to continue to become increasingly more efficient and the best value around. They are continually working to optimize their e-shopping experience by improving their online navigation features as well as improving the ease of paying for …show more content…

They offer their private label Kirkland Signature brand, as well as, a large selection of name brand merchandise. Costco is always looking to add new brands to their product line. “They experienced a impressive 18.52% return on equity in 2014. Sales exceeded $110 billion, and net income totaled $2.06 billion, or $4.65 per share. Our cash flow was strong; and over $900 million was returned to shareholders in the form of dividends ($584 million) and share repurchases ($334 million)”, (Costco Wholesale Return on Equity (TTM) (COST), 2015). What is the return on capital earned by Costco? Are they picking good projects? “As of today, Costco Wholesale Corp's weighted average cost Of capital is 7.95%. Costco Wholesale Corp's return on capital is 25.04%. Costco Wholesale Corp generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases” (Costco Wholesale Corp (COST) Return on Capital, 2015). Costco’s Finance Initiative and Good

Show More
Related

Rogers Communications Inc Executive Summary

1102 Words | 5 Pages

Rogers Communication Inc. is a comprehensive Canadian communication and media company. It collects revenue in the field of wireless communications, cable television, home phone and Internet (“Rogers Communications Inc. 2013 Annual Report,” 2013). Rogers wireless is Canada’s largest wireless service provider，which operates three different types of network now, that is global system for mobile communications (GSM), high-speed packet access (HSPA), and long-term evolution (LTE) (Iain M, 2011). Rogers Wireless sells customers with smartphones and wireless devices; meanwhile, it provides wireless roaming across America and two hundred other countries. It is a multifaceted player in current market currently serving over 9-million subscribers countrywide.

Read More

Target Corporation Executive Summary

227 Words | 1 Pages

Target Corporation (TGT) is an international general merchandise and grocery retailer founded in Minneapolis, Minnesota that works to ensure that the customer is provided with the opportunity to purchase a wide variety of goods such as household products, electronics, pharmacy, personal care products, grocery goods, clothing apparel, and sporting goods in order to achieve customer satisfaction at a discounted price in order to remain competitive within the industry. The primary goal for Target is to overcome their various competitors within the industry in order to generate profit through continuous innovation and delivering outstanding value at each Target location in order to be the preferred shopping destination amongst the customer. In

Read More

Diamond Pet Foods Case Study

1401 Words | 6 Pages

Looking at the Kirkland Dog Food Company: Kirkland pet food is made for Costco by Diamond Pet Foods, Inc. Two of Diamond 's factories are in California. One is in Missouri, and there is another one in South Carolina. Because Kirkland is a private, in-store label, there isn’t a lot of advertising.

Read More

Costco Wholesale Corporation Executive Summary

898 Words | 4 Pages

Their current market situation and competitive strategy highlights aspects that Costco has implemented in the organization to increase sales and

Read More

Cutco Direct Marketing Strategy

554 Words | 3 Pages

Cutco has targeted the high end of that market and created a corporate culture based on maintaining the highest quality standards. In the marketing strategy employed by Vector marketing, the company that manages the sales force for Cutco, customers have the ability to share their personal stories of family and times when their Cutco product has helped or served them. Thousands of customers have written stories to the company to express how their products have affected their lives, it is these stories that create lifetime customers and appeal to other consumers when looking for what they want. Vector calls this the friends of friends approach to marketing and it is very successful in this case as annual sales are over $200 million. I believe that there is more money to be had if they mass produce and used either retailer or wholesaler channels, but Cutco isn’t willing to sacrifice the quality for the

Read More

Costco's Macro Environment Case Study

149 Words | 1 Pages

In Costco’s macro-environment, a variety of factors could affect the company’s economic viability. External factors such as inflation, foreign currency exchange rates, levels of unemployment, reduced consumer confidence, and changes in tax policies could unfavorably affect the demand for Costco’s products and services. Prices of some goods and services including food products, are often variant and subject to fluctuations deriving from changes in domestic and foreign supply and demand, competition, taxes, labor costs, or delays in delivery which could significantly affect Costco’s sales. Therefore, the product’s costs and selling could also increase affecting financial results. Other important economic factors include the increasing international

Read More

Costco Code Of Ethics Essay

519 Words | 3 Pages

Costco has built a reputation of being a caring corporation1 with a low cost structure in the discount services sector. Their founder, Jim Sinegal, believed in building a business on strong ethics while offering a wide selection and great value. Costco’s vision is expressed in its code of ethics which contains five key tenets by which the company operates: Obey the law, take care of our members, take care of our employees, respect our suppliers & reward our shareholders.2 With this vision Costco has built the third largest retailor in the United States. By looking closely at the code of ethics it becomes possible to see it has built in strengths and weaknesses.

Read More

Critical Analysis Of Costco

776 Words | 4 Pages

There is clearly room for further expansion into these regions as well as the opportunity for massive expansion into China and India. When Costco enters another country it does everything in its power

Read More

Blaine Kitchenware: Case Study: Blaine Kitchenware Case

921 Words | 4 Pages

Return on Equity increased from 10.98% to 15.39%, showing that the firm is more profitable than before. Earnings per Share increased as well, as there were less shares outstanding with the repurchase while net income was unaffected. EPS increased from $0.91 to $1.04, another indicator that the leverage increased profitability. With the repurchase, Blaine’s D/E ratio increased, going from not having any debt at all to a D/E ratio of 11.48%, which is more inline with industry competitors. PE ratio fell as a result of the leverage.

Read More

Costco's Competitive Strategies

729 Words | 3 Pages

What are the two types of core competencies that drive a firm’s competitive advantage? Which firms demonstrate a clear competitive advantage because of (a) major value-creating skills/core capabilities and/or (b) superior assets or resources? Which firms have demonstrated sustainable sources of competitive advantage? The two core competencies that drive a firm’s competitive advantage are cost leadership and differentiation.

Read More

Chipotle Executive Summary

907 Words | 4 Pages

Executive Summary In this week of the Stock Exchange Challenge, I determined that Chipotle was the best stock to sell. Its E.coli breakthrough, pork shortages resulting in profit loss, as well as animal welfare difficulties concerned me to the point of trading it. Chipotle has under preformed in profit gains and dividends since it launched and its increased competitors will only further hurt this business.

Read More

Costco Target Market Analysis

812 Words | 4 Pages

Market Segmentation: To be of value market segments must be measurable, substantial, accessible, differentiable, and actionable (Kotler & Keller, 2012). Segmentation of demographics for Costco is vast as the current product offerings include all genders, ethnicities, incomes. age groups, and social classes. When considering demographics, it is important to consider the average or typical characteristics of the target market. As mentioned earlier the target market or focus for this company is supplying the small- to medium-sized business and targets the middle- to high-end consumer with its private label brand Kirkland Signature.

Read More

Levendarary Cafe Case Study Solution

5210 Words | 21 Pages

This also improves Chen’s loyalty towards Levendary. DISADVANTAGES: The main disadvantage of this strategy is that the China operations cannot be controlled by Denver head office. Levendary fails in acquiring global recognition for its brand. The core hierarchical structure of approach changes with this strategy.

Read More

Groupon Essay

1397 Words | 6 Pages

In general, it is hard for foreign companies to establish themselves in the Asian market, especially in China, because of the strong cultural background. It will not work out well for a foreign company to adapt its marketing model to the Chinese market. Marketing models such as direct marketing of the brand, which works well in the American market, is likely to fail in the Chinese market. Although Groupon has spent millions into marketing its brand on the Chinese market, the Chinese customers were not ready to see the brand’s products being better as the one of its competitors. Chinese customers are less likely to be loyal to any brand due to their low levels of indulgence.

Read More

Lenovo Supply Chain Strategy

757 Words | 4 Pages

Protect their key markets - which is China and their mature "Think" business with their company accounts. Attack their emerging, transnational markets and build a presence within the home or small business (SMB) segments across that house. This two-pronged business strategy, established in early 2009 by their chief operating officer, Yuanqing yang, additionally needed alignment of the availability chain to the customers in every market. To enable them to do so, they targeted on trade their supply chain operations to customer wants, closely managing supplier risk caused by volatile market conditions last

Read More

More about Costco Executive Summary

Open Document