ECON 310 Intermediate Microeconomics Costco; Your Local Friend Lawrence Lam Cal State Fullerton Superstores such as Wal-Mart, Target, and Home Depot have always been frowned upon by local businesses because of the competition it brings. Lower prices forces nearby stores to lower their prices until they shut down because of the negative profits from lowering their prices or because they don't acquire enough revenue to stay in the market. However ironically this feeling isn't shared
Words: 1613 - Pages: 7
Overview: Costco was founded by Jim Sinegal and Jeffrey Brotman. Costco opened its first warehouse in Seattle, Washington, on September 15, 1983. Siegal had started in wholesale distribution by working for Sol Price at both FedMart and Price Club. In 1993, Costco merged with Price Club. Costco’s business model and size were similar to those of Price Club. In 1997, PriceCostco changed their name to Costco Wholesale and all the Price Club locations were rebranded to Costco. Costco was the first company
Words: 595 - Pages: 3
aziendale - Formulazione ed esecuzione Arthur A. Thompson, A. J. Strickland III, John E. Gamble Copyright © 2009 - The McGraw-Hill Companies srl Case 1 Costco Wholesale Corporation: Mission, Business Model, and Strategy he was prone to display irritation when he disagreed sharply with what people were saying to him. In touring a Costco store with the local store manager, Sinegal was very much the person-in-charge. He functioned as producer, director, and knowledgeable critic. He cut to the
Words: 11396 - Pages: 46
CASE: A-186A DATE: 06/19/03 CosTco WHOLESALE CORPORATION FINANCIAL STATEMENT ANALYSIS (A) INTRODUCTION Margarita Torres first purchased shares in Costco Wholesale Corporation in 1997 as part of her personal investment portfolio. Between 1997 and 2002, she added slightly to her holdings from time to time when the company sold stock for what she felt was a reasonable valuation, and up to that time she did not sell any of her shares. Having watched Costco grow from 265 warehouses to 365 worldwide
Words: 12628 - Pages: 51
Clarence Morris Case Analysis 1: Costco Wholesale MGT 442Strategic Management & Business Policy Dr. McDaniel The first Costco store began operations in Seattle in 1983, the same year that Wal-Mart launched its warehouse membership format, Sam’s Club. Jim Sinegal (CEO) and Seattle Entrepreneur Jeff Brotman (now chairman of the board of directors) founded Costco in 1982. Jim Sinegal derived the idea of a warehouse membership format while working out in San Diego as a manager for his mentor
Words: 471 - Pages: 2
COSTCO WHOLESALE CORPORATION FINANCIAL STATEMENT ANALYSIS The important thing for stockholders is to review their investments on regular basis. So Margarita Torres wants to reconsider her analysis determine If Costco was still operating efficiently. There are some reasons why Torres should keep her investment and should continue to maintain her investment in Costco. * Year over year, Costco Wholesale Corporation has been able to grow revenues from $71.4B to $77.9B. The company has been
Words: 280 - Pages: 2
the company is also based on the limited product or product selection as more products mean more confusion for the customer. This technique helps to create a good relationship with its suppliers. The strategy contains all of the criteria to make Costco one of the successful companies today. 3. Do you think Jim Sinegal is an effective CEO? What grades would you give him in leading the process of crafting and executing Costco’s strategy? What support can you offer for these grades?
Words: 1422 - Pages: 6
Costco Wholesale Corp 2012 Case Study Costco’s business model is based on a best-cost strategy. They take the low-cost provider approach and combine that with creating value for the various stakeholders by focusing on excellent customer service, a strict code of ethics, treating employees like family, respecting suppliers, rewarding shareholders, and a strong sense of environmental stewardship. They have implemented unique cost-saving strategies in their production, operations, and marketing
Words: 755 - Pages: 4
important and will be discussed later in the positioning statement. Target marketing and segmentation for Costco Wholesale is unique to other retail business as it operates as a member-only warehouse club. Costco initially opened the doors as Price Club in 1976 and operates domestically and internationally in 663 locations worldwide, and is headquartered in Issaquah, Washington (Costco Wholesale, 2014). The original target focus for the warehouses were designed and targeted to accommodate small-to-medium-sized
Words: 1485 - Pages: 6
HBS Case Study 2: Costco Wholesale Corporation Financial Statement Analysis (A) Lee Hathaway MMS 185: Managerial Finance Professor Veraldi September 27, 2007 It is important for stockholders to continuously re-evaluate their investments. Although some investors do this more frequently and thoroughly than others, the majority of shareholders do so at least once each year. Therefore, Torres’ desire to update her analysis in order to determine whether Costco was still operating efficiently
Words: 3387 - Pages: 14
