ipl-logo

Costco's Business Model

413 Words2 Pages

History and Background:
The first store was named a Price Club store opened in 1976. The first Costco warehouse opened in Seattle, Washington in September 1983. Then, In 1993 Costco and Price Club merged under named PriceCostco. In 1997, Costco Wholesale resumed as company name.

Operation:
The Primary Target Market is a small business member. The General Target is 40 to 60 year old people who have College educated and higher income. Costco’s goal is continually provide Costco’s members with a best quality goods and services at the lowest possible prices. Costco has the warehouses around the world, in U.S & Puerto Rico has 305 warehouses. In Canada, Costco has 61 warehouses; in United Kingdom, Costco has 15 warehouses, in Taiwan, Costco has 3 warehouses; In Korea, Costco has 5 warehouses; In Japan, Costco has 4 warehouses and in Mexico, Costco has 21 warehouses. Costco has a large warehouse size wit 70,000~160,000 sg.ft. In USA, Costco has 75,880 full and part time employees. Worldwide, Costco has 102,000 full and part time employees. …show more content…

Costco is dealing with high quality and brand-name merchandise as Whirlpool, Sony, Mont Blanc. Costco has an unconditional guarantee with full refund and Costco offers the best lowest possible price. Costco has a special strategy to offer lowest price as No sales people, No fancy building, Warehousing, Purchase in bulk, Minimized restocking and Membership cards. Costco has multitude of services as Pharmacy, Optical and Eye care, Tire Service Center and

Show More
Related
1117 Words | 5 Pages

According to the statistics in 2015 Costco made 116.2 billion compared to Sam’s Club 57 billion. How is it possible that Costco is beating Walmart and Sam’s Club? Costco has 671 stores and Sam’s Club has 647 but one Costco store makes double what one Sam’s Club makes in revenue a year. Costco pays their employees better than Sam’s Club for example a cashier will start off at 13/hour compared to Sam’s Club at 9/hour this alone will create a better work culture.

Read More
1270 Words | 6 Pages

Innovation with products to attract new customers and staying focused on Costco core business. Market Analysis Costco is a global company with a strong brand image with good value. Currently, Costco is facing challenges to get market share from online sales competing with Amazon, eBay and Sam’s club. While Costco has a larger customer base, there are some factors that make Sam’s club a more attractive choice for customers, thus making it a potential threat (Team, 2014).

Read More
478 Words | 2 Pages

Executive Summary Costco is a private company in australia and the customers have to have a membership to shop in any of the store all across the world with over 700 stores About Costco Costco is a whole sale corporate that started in Seattle and come over from America as they have saturated the market over there. They have now got 9 stores in Australia and has 2 upcoming stores to be opened in the soon future. The founders of Costco are James Sinegal and Jeffery H Brotman Costco’ Business Structure Size & Location After opening their first store in 2009 with in 9 years the 8 more stores have opened in NSW, QLD, ACT, SA, VIC in Australia and the sales is over $1 billion per annum.

Read More
654 Words | 3 Pages

Brotman to open the first Costco warehouse in Seattle, Washington. By 1985 Costco had expanded into Canada. Costco introduced the sale of fresh meat and in-store bakery in 1987. In 1993 Costco agrees to merge with PriceClub. The next year in 1994 Costco opened the doors to a new store in Korea.

Read More
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
837 Words | 4 Pages

Introduction to Business Costco Wholesale Corporation is a warehouse club retail store. Consumers should join Costco membership to enjoy their cheap price products and services. Costco was founded by Jim Sinegal and Jeffrey H. Brotman in Seattle in September 1983. Membership fees and a tiny portion of retail sales are how Costco makes money. Costco Wholesale Corporation. 2024.

Read More
1211 Words | 5 Pages

Costco's History and Success Costco's history dates back to 1976, when Sol Price established the first Price Club in San Diego, California. Price Clubs were wholesalers that charged members a yearly fee. Jim Sinegal and Jeff Brotman founded Costco in 1983, and the foremost storehouse opened in Seattle that year. Costco and Price Club combined in 1993, resulting in the contemporary Costco company. Costco is an American international organization that operates as a "membership warehouse club".

Read More
388 Words | 2 Pages

The company currently has more than 2,200 stores in the United States, Canada and Mexico. (Home Depot, 2015) The Home Depot opened in Canada by acquiring Aikenhead’s Home Improvement Centers in 1994, and it arrived in Mexico in 2001 by procuring Total Home. In 2006, the company also acquired The Home Way, a 12-store chain, in China however, this venture was unsuccessful, resulting in closure of the stores in 2011. (Wikipedia, 2015)

Read More
581 Words | 3 Pages

As of 2023, Costco has 850 total warehouses with 158 of them being outside of the United States and Canada (Costco, 2023). Costco is able to scale partially because of their hiring and product selection, but also because they slowly build up their store counts in the same countries over the years by capitalizing and adjusting to each countries cultures and catering to it. For instance, Costco entered Japan in the 1990’s and they currently have 31 stores their which is the most outside of North America (Costco, 2023). This is due to their growth strategy (Parnell, 2014).

Read More
1093 Words | 5 Pages

Almost everyone has heard of the membership warehouse retailer, Costco Wholesale, whether or not you actually choose to shop there. You can find one of their warehouses in over 400 locations around the United States, as well as an additional 200 warehouses in Canada, Mexico, Australia, the United Kingdom, and parts of Asia. Although they are not quite as instantly recognizable as their main competitor, Sam’s Club of Wal-Mart Inc., Costco has attracted somewhat of a cult following due to their unusual business operations. In many financial comparisons, Costco seems to beat out all of their industry competitors. Even in the recent economic downtown, Costco still posted growth in their stock, as well as higher than industry average profits.

Read More
1668 Words | 7 Pages

Costco recognizes that its customers are the reason for the company’s success. It acknowledges that there are many alternative-shopping experiences and strives to ensure that their customers receive a 100% satisfaction guarantee, a welcoming shopping experience and top-quality products that are not only low in price but also high in quality and safety. The two biggest competitive advantages that Costco has are its loyal customers and their “absolute pricing authority” that allows them to guarantee low prices. (Delete) Lastly, Costco strives to respect its supplies. Costco wants to create positive and honest buying and disturbing among all who work with Costco.

Read More
240 Words | 1 Pages

While providing in bulk this targets specific groups, such as convenience stores, concessions for athletic games as well as consumers that prefer to buy in bulk to alleviate multiple trips to the store. The original target focus for warehouses

Read More
395 Words | 2 Pages

Costco Wholesale Corporation manages a global chain of membership warehouses, mainly under the “Costco Wholesale” with the URL http://www.costco.com. Costo's philosophy is to provide its members with quality goods at the most competitive prices. It carries quality, brand name merchandise at substantially lower prices that the merchandise typically found at any other local specialists. The warehouses are created to assist small and medium enterprises in reducing a cost for everyday business and resale for the products. Individual can purchase on their individual requirement.

Read More
264 Words | 2 Pages

The last strategy is price and pricing strategy and Costco uses a market oriented pricing strategy. Market oriented happens when the company uses market conditions to help set prices. Costco’s aim to offer the lowest prices possible while for all of their items. Costco at the same time feels that promoting products needs to have value. Once when they have the proper techniques, they should share it with other private wholesalers so they wholesale industry could be the number 1 place for consumers to shop.

Read More
294 Words | 2 Pages

Costco would be able to provide its German customers products that they like and consume the most. For example, it is a known fact that the average German drank 114 liters of beer in the year 2014. This is four times the global average and considerably more than the United States. Costco sells a wide variety of beer at wholesale price, which happen

Read More

More about Costco's Business Model

Related Topics

Open Document