Costco Mission Statement

According to the Article Costco has a good going Mission statement. "To continually provide our members with quality food and service at the lowest possible prices" the company immediately focused on achieving success through Rapid inventory turnover management and operating efficiencies by volume purchasing. Providing a company that sells in bulks creates amazing sales opportunities for example its annual sales "1.5 million on Televisions, 300 million worth of digital cameras, and even 16 million worth of pumpkin pies during fall season" To achieve such results Costco Strategy was based around low prices, limited selection, and a treasure shopping hung environment. Pricing was important to Costco they mention in the article that they were

Another strategy Costco focused on is Product Selection. When re stocking their shelves Costco has a strategy that is explain as a “intelligent loss of sales". Unlike many other retail stores or whole sales they stock up on brands from 40,000 to 150,000 items from shoppers to choose from, but Costco only has a selection of 4,000. Costco strategy is to limit its selection in each product to fast selling models, sizes and colors. The Advil example proved that if they had many size it would be harder to manage. They also get people to shop frequently by providing ancillary business around, like food courts, gas stations and print shops. Treasure hunting environment is an interesting strategy. Costco focused on product offerings consistently changes. Which means that buyers stay on the lookout for merchandise that seem to always run out quickly, and many of these items are luxury. Running from a price of 2,000-3,500 screen TV and 800 dollar leather sofas. When it came down to marketing and advertising Costco strategy is to maintain direct mailing and keeping marketing expenses low. Their growth strategy is to expand their company

Costco having the highest percentage of shares of 55%, Sam's club has 36% and Bj's with a 9%. Competition toward the warehouses are based on prices, merchandise quality, location, and member service. Away from each other they also have to compete with other retail stores, which also have low prices. Sam has similar strategy like limiting products and low prices, but they also have different activities. For their advertising they base it on TV commercials and ads on national TV. Sam's membership Fee is lower but consist of less benefits, unlike Costco premium 100 free with Health insurance, website operation, and personal financial service, Etc. Bj strategy is obtaining brands and products found in other retail stores, about 70% of the products can be found in retails stores too. Also Bjs has business running in bjs like the gas station, pharmacy, vacation renting service, much more. Which they lease to Bjs for that space. They also have smaller packaging items, more coupons available, and payment