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Costco Case Study Essay

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Costco Case Study Essay
COSTCO CASE STUDY

Darla J. Smith
Business Capstone
Professor Kim Oesterle
June 13, 2011

Costco is a membership warehouse pioneered by discount merchandising sage Sol Price. Jim Sinegal left the Price and started Costco with Jeff Brotman in 1983. After opening the first Costco store within approximately 18 months the pair had opened nine stores in five states. In December, 1985, Costco became a public and raising additional capital for expansion.
Costco is a member based wholesaler that has annual membership fees at a cost of $50 to $100.
Costco’s business model depends on high sales volume coupled with quick inventory turnover, made possible by low prices and limited product selection among a wide variety of branded and private


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