Question

research and prepare a presentation on Costco

Answer 1

Presentation on Costco :-

OSTCO HOLESALE Submitted by:

Introduction Founded in 1983 CEO: James Sinegal Headquarters: Issaquah, WA Inception: Seattle, WA 1983 Stock Symbol: COST (NASDAQ) Founders: James Sinegal & Jefferey Brotm an Seventh largest retailer in the world Fastest growing company in the history among American businesses NEWO AND uT

History Sol Price, along with his son Robert -pioneered what is now termed "warehouse retailing." In this business model, business owners operate warehouse stores located in the city outskirts, where buildings and real estate property are priced lower. Consumer products are bought directly from the manufacturers and delivered straight to these warehouse stores, where they are sold by the bulk at cheaper prices than that in department stores.

Costco OOnly company to achieve $6 billion in sales from zero in six years. Founder Jim Sinegal coined as the inventor of the who lesa le Club concept. OPhilosophy is to "keep members coming in to shop by wowing them with low prices" ODoes not engage in extensive advertisements or sale campaigns. Five Guiding Principles Take care of members Take care of employees COSTCO Respect suppliers COSTCO Reward shareholders BusESS n COSTCO WHOLESALE

Costco Timeline 1993 -Shareholders approve Price Company and Costco merger Price Costco 1st UK store 2006 27 new locations opened (487 total 1994 PriceCost cos opens its fst Asio store 1983 First Costco warehouse opens 1990 Costco.com is created 1975 1995 2000 1970 1980 1985 1990 2005 2010 200e -eth largest wodd retailer 1976 1st Price Club is - 29th on Fortune 500 1995 Kiridand Signature is introduced opened 1999 Costco Wholesale Corporati on 1997 PriceCostco to Costco Companies 2003 24 new Costco locations opened Inc.

Key Information Number of warehouses Membership Data 605 (as of 6/29/12) 66.5 million cardh olders 36.4 million house ho Ids Areas of operation 26.4 million Gold Star 438 locations: 40 U.S. States 6.4 million Business 82 locations: Canadian 3.6million Business add ons 22 locations: United Kingdom Warehouse sizes 8 locations: Taiwan 7 locations: Korea 73,000 to 205,000 square feet (average 143,000 square feet) 13 locations: Japan 3 location: Australia Annual revenues (FY11- Ended 8/28/11): 32 locations: 18 Mexican states Number of employees $88.9 billion (worldwide) 160,292 full and part-time

Departments & Services Cooler & Delivery Frozen Food Health & Beauty Tobacco Beers, Wines and Spirits Office Confectionery Electronics Sporting Goods Lawn & Garden Soft Drinks Catering and Cleaning Butchery Toys & Seasonal Automotive & Tyre Bay Apparel Grocery Cookware Small Appliance Hardware Domestic Bakery Service Delivery

Kirkland Signature In 1995, Costco created the Kirkland Signature label, named after the city of Kirkland, Washington, where the Home Office was located at the time. Kirkland Signature is a $4 billion brand and Accounts for 24 percent of Food & Sundries sales in the U.S.A. and 20 percent globally. Toilet Tissue is the most popular Kirkland Signature product (approx. $300 million globally) Costco continues to grow the Kirkland Signature brand, and prides itself on maintaining its high standards for quality value and price.

Kirkland Signature Products Some of the most popular items include Toilet tissue Spring water Assorted nuts Jeans Belgian choco lates Vodka Washing powder Cookware sets Bed linen Wine

Product Diversification OCore-Costco Wholesale Warehouse Clubs and Superstores Premium private-label products OSpecialty - Consumer Services Travel Optical Automotive PASSPORT SACTION Financial Services 401(K) QUARANTY Loans AMERICAR CEPRESS Insurance OPharmacy 182215678 0100 Recycle electronics CoSTCO

Competitive Advantage Finding and negotiating bargains On quality merchandise Building relationships with Manufacturers Suppliers Ingenuity Cost cutting Conservation Human Resources Employing the best talent

SWOT Analysis S Strengths OLow Prices Strong Brand Operating Efficiency Exceptional Workforce OStrong membership w Weaknesses Burden of high wages paid to workers CEO's retirement Low price margins OE-commerce activities OSmall Marketing budget compared to discount retailers and super markets Opportunities Appeal to conscientio us shopper OExpand into fo reign stable markets Threats T OAggressive price competition by rivals Political complications in foreign markets OMergers & Acqu is itions OMassive supplier pool OCannibalization

Strategic Issues Remain focused on core business OMaintain First Mover Status Increase internationalization opportunities

Costco Strategy for the Future The primary objective of Costco Corporation is the administration of the network of subordinate wareh ouses, which provide quality goods for competitive prices. The level of the prices established within the network is usually lower than those offered by the local competitors. Thus, the company assists local retailers to reduce cost and successfully operate in the competitive environment. Besides, the company serves not only legal person s; any physical person may become the customer of Costco Wareho use as well.

Costco Advantages Convenience: Costco supermarket is maximum fifteen minutes drive from the point the customer is. Price: Costco stores attract numerous clients because of its business strategy of providing items in bulk and at low prices Sweater At other store- $20 At Costco-$15(Brand Nike)

Customer Costco targets independent small business owners who have typically $100,000 or more of personal income Actual average Costco customer is women in large householders with income of $50,000 or more Typically customer visits 8-11 times per year Goods are usually bulk-packaged oMarketed primarily to large families and businesses. Does not carry multiple brands or varieties oHouse brand to sell, under the Kirkland Signature label. Results in high volume of sales from single vendor, allowing further reduction in price, and red ucing marketing costs.

Costco's Biggest Concern Over expansion Cannibalization of existing store locations As a result, the company has announced it will slow its domestic expansion plans and will look to international markets for future growth.