Costco Wholesale in 2012: Mission, Business Model, and Strategy Jim Sinegal, co-founder and long-time CEO of Costa Wholesale, was the driving force behind Costco’s 29-year march to become the third largest retailer in the United States, the seventh largest retailer in the world, and the clear leader of the discount warehouse and wholesale club segment of the North American retailing industry. Sinegal spent considerable time touring Costco stores, using the company plane
Words: 307 - Pages: 2
became Vice-President of Merchandising and Operations at FedMart. He also held several executive positions within other companies up until 1983. Having held several executive positions, what Jim Sinegal is most known for is that in 1983 he co-founded Costco and was the president and CEO until he retired in January 2012. As CEO, Jim Sinegal believed in taking care of his employees. He also believed in treating his customers just as good as he did his employees. It was said that he was far more
Words: 942 - Pages: 4
This is especially true for Costco, who anticipates crisis and change in the retail industry and with its circular vision finds a way to reinvent and change its distribution channel to maximize its volume and overall efficiency. The industry also continues to evolve by improving their website capabilities and sales, and continuing to deliver low prices along with value to its customers. The retail warehouse store industry is a comprised of three major competitors, Costco Wholesale, Sam’s Club, and
Words: 1894 - Pages: 8
using financial historical information/analysis of Costco. While Costco may not seem to have the revenue, assets and market share like similar and larger companies such as Wal-Mart and Target they are without a doubt a very profitable and successful company. What Costco lacks in high margins, they make up for in being a highly efficient company boasting high asset and equity turnover while maintaining optimum liabilities and debt to equity ratios. Costco is a great company that is seeing profitable success
Words: 3764 - Pages: 16
, costco Founded in 1983 by Jim Sinegal, Costco is the worlds leading wholesale warehouse retailer. A membership based club, “Costco provides a wide selection of merchandise, plus the convenience of specialty departments and exclusive member services, all designed to make your shopping experience a pleasurable one.” (Costco.com/about). In 2013 Costco reported net sales of $31.77 Billion in the fourth quarter and $102.87 billion during the 52-week fiscal year (Yahoo Finance). Does the company’s strategy
Words: 759 - Pages: 4
One of Costco’s resources of competitive advantage is the membership-based shopping method. In fact, Costco is also the first wholesale membership warehouse stores around the world. Members need to pay an annual membership fee so that those members could purchase the goods below the market price from 5% to 30% in Costco. The membership fee is the highest one among the wholesale industry which claims $55 for annual. BJ’s and Sam’s Club are the other two major warehouse supermarkets in US whose membership
Words: 1359 - Pages: 6
2015 Craig Jelinek's personality Craig Jelinek has been with Costco team since 1984, and he has done various jobs in those years. He is dedicated to Costco and what the company represents. He became the President of Costco in 2012. If something works don’t change it as in the $1.50 Costco hot dog deal. He worked with the previous President Jim Sinegal and learned about business management from him. Jelinek’s knows Costco culture and what has worked with its employees and customers. He
Words: 723 - Pages: 3
Costco Group Case Study 1. What is Costco's USP (Unique selling proposition) Costco’s USP is a simply based approach: to do what is best for the customer as well as the employees. According to the article, “the emphasis is on moral leadership…business decisions are made on the broader criteria of whether they are creating a better value for the customer and whether they are doing the right thing for their employees and stakeholders.” Simply stated, happy employees that are treated with
Words: 997 - Pages: 4
companies that I chose to compare are Sam’s Club and Costco’s. In comparing the two companies, I notice that Sam’s club business model is revenue model and a subscription model. Whereas Costco uses an affiliate model, when you click on the credit card you are directed to American express website. And also Costco is using the transaction fee revenue model, because the customer earns a percentage back on purchases with their credit card. As well they are using the subscription model, because they
Words: 338 - Pages: 2
Costco Wholesale Case Analysis Management 370-3 Dr. Xu December 7, 2014 The Costco warehouse club has been in business since 1970. Founded by James Sinegal and Jeffrey Brotman. Costco has become the number one warehouse store in the world. With over 488 locations and serving 48 million cardholders in eight countries. The warehouse club keeps growing and has become a successful warehouse club. The founders created guide lines to follow to achieve their goals as an organization
Words: 2273 - Pages: 10
