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Costco Craze Analysis

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Costco Craze Analysis

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Costco Craze Analysis

Costco, a “no frills” operation that has successfully grown into a prosperous billion dollar empire by taking pride on its goodwill practices. Currently leading as the second largest retailer, it humbly maintains its runner-up spot by practicing smart business tactics, exquisite innovation and leadership. The company’s mission revolves around ethics for profit and price, and strives for satisfaction both internally and externally. The empowering corporation expresses great dignity in its operation, structure and management.
Formerly known as “Price Club”, Costco has successfully rose from the top by enforcing a smart operation that would become profitable. CEO, Jim Sinegal had a vision that that consisted of selling bulk purchase items at low prices in a member’s only warehouse. It was important to the CEO that the operation ran on four important code of ethics in mind: obey the law, take care of members, take care of employees and respect vendors (Farfan, 2013). With that ethical approach, the company set out to deliver a unique method over the traditional grocery and retail store. It was considered a bit risky to declare a purchased membership to just be able to shop in the store, memberships start out at $55.00 U.S. dollars and can be upgraded to an executive membership of $110.00 U.S. dollars annually. The membership investment offers customers the opportunity to have access to top quality items purchased in bulk at a fair price, access to low gas prices, mortgage and travel services. Costco is not the average grocery retail chain, all items in the warehouse are not marked up more than 15%, in comparison to other retailers who mark up their items at 25% minimally. Their fair approach, is recognized and appreciated by consumers, thus causing dedicated members to renew their membership annually. A high

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