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Costco's Business Model

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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

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