Brief Introduction of Costco
Good afternoon everyone, welcome to our presentation. We are Bravery and here are our group members…this is …this is… and I am Steven. The company we are going to analyze today is Costco. Before our introduction, let’s first watch a video.
Firstly, we will introduce the overall background information of Costco. Secondly, the vision and mission of Costco will be analyzed. Thirdly, we will talk about how did they come up with their dreams. Fourthly, the analysis about the strategic objectives will be given. Lastly, we will identify the challenge Costco is facing and give our recommendations.
Costco is a membership wholesale club based in the U.S., which is aim for bringing the quality products and service at the lowest possible price to customer. It was founded by James Sinegal & Jeffrey Brotman in 1983 and now it is the largest membership warehouse club chain in the United States, ranking 24th in the Fortune Top 500.
Costco now has operated a chain of 622 warehouses around the world, with 448 in American, 85 in 9 Canadian provinces, 32 in Mexico, 13 in Japan, 9 in Korea, 9 in Taiwan, 3 in the Australia, and 23 in the United Kingdom. The Company also operates Costco Online, the electronic commerce web sites at 3 different countries, and they also own a store-brand Kirkland Signature since 1995, Kirkland Signature is known for quality product and discounted prices.
The business model of Costco is called price club model, which allows its members to purchase a limited selection of goods at relatively low prices. Actually Costco does not carry multiple brands or varieties items which are almost the same. They only provide about 4000 selection items. This result in a high volume of goods purchased from a single vendor, allowing further reductions in price and marketing costs.
Costco charges membership fees and in return provides quality goods at low price to members. In 2012 the company received $3.8 billion dollar membership fee from more than 67 million
Firstly, we will introduce the overall background information of Costco. Secondly, the vision and mission of Costco will be analyzed. Thirdly, we will talk about how did they come up with their dreams. Fourthly, the analysis about the strategic objectives will be given. Lastly, we will identify the challenge Costco is facing and give our recommendations.
Costco is a membership wholesale club based in the U.S., which is aim for bringing the quality products and service at the lowest possible price to customer. It was founded by James Sinegal & Jeffrey Brotman in 1983 and now it is the largest membership warehouse club chain in the United States, ranking 24th in the Fortune Top 500.
Costco now has operated a chain of 622 warehouses around the world, with 448 in American, 85 in 9 Canadian provinces, 32 in Mexico, 13 in Japan, 9 in Korea, 9 in Taiwan, 3 in the Australia, and 23 in the United Kingdom. The Company also operates Costco Online, the electronic commerce web sites at 3 different countries, and they also own a store-brand Kirkland Signature since 1995, Kirkland Signature is known for quality product and discounted prices.
The business model of Costco is called price club model, which allows its members to purchase a limited selection of goods at relatively low prices. Actually Costco does not carry multiple brands or varieties items which are almost the same. They only provide about 4000 selection items. This result in a high volume of goods purchased from a single vendor, allowing further reductions in price and marketing costs.
Costco charges membership fees and in return provides quality goods at low price to members. In 2012 the company received $3.8 billion dollar membership fee from more than 67 million