1. Costco has 129,000 full and part time U.S. employees. They have 60,000 full and part time employees outside of the U.S. 2. Costco is an American membership-only warehouse club that provides a wide selection of merchandise. Costco offers discounts on its merchandise, to make up for it a majority of their profit comes from its membership fee. They charge an annual membership fee of $55 for business and business add-on membership, and $110 for executive membership. They have a store brand called
Words: 316 - Pages: 2
Costco Inc. 2012: A Wholesale Membership Industry Analysis Using the Porter’s Five Forces Model Costco’s Company Background Costco is the third largest retailer in the U.S. as well as the seventh largest retailer in the world. It is leading the discount warehouse and wholesale club segment of the North American retailing industry. As of 2012, Costco had a total of 598 warehouses internationally. Costco’s fiscal 2011 total revenue was $88.9 billion and net income was $1.46 billion. Additionally
Words: 2955 - Pages: 12
merchandise at Sam’s Club was shipped from the division’s own distribution facilities and, in the case of perishable items, from some of Wal-Mart’s grocery distribution centers; the balance was shipped by suppliers direct to Sam’s Club locations. Like Costco, Sam’s Club distribution centers employed cross-docking tech- niques whereby incoming shipments were transferred immediately to outgoing trailers destined for Sam’s Club locations; shipments typically spent less than 24 hours at a cross-docking
Words: 274 - Pages: 2
Walmart The Retail Superpower Vinod Palikala vpalika@hotmail.com Walmart Valuation by Vinod Palikala Walmart Company Overview Walmart is the largest retailer in the world and accounts for nearly 10% of all retail sales in US. It dominates the retail market with sales exceeding that of the next six largest retailers in US. Retailers compete for customers on five major factors: 1. 2. 3.
Words: 2274 - Pages: 10
Buyers The pressure the wholesale clubs are experiencing with their buyer is just moderate since there are only few factors that gives the buyer a moderate bargaining power. Buyers switching costs to non-warehouse types of supermarket is somehow high since other traditional and retail outlets are readily available Since warehouse clubs do not offer retail products, customers can easily switch to retailers if they feel that the bulk products that the warehouse are offering are too many and the
Words: 1048 - Pages: 5
ASSIGNMENT QUESTIONS: Costco Wholesale Corp.: 1. What is Costco’s business model? Is the company’s business model appealing? Why or why not? Costco business model is meant to maximize efficiency by depending on a high sales tied with quick inventory earnings. Costco’s concept is base on offering members the lowest price on a limited selection of national brands, the warehouse format maintain a low cost rate as they buy and sell items in bulk. Costco memberships keep customers loyal, because
Words: 1456 - Pages: 6
“Costco is a warehouse that offers members a limited selection of nationally branded and selected private-label products in a wide range of merchandise categories. We concentrate on our mission to continually bring quality goods and services to our members at the lowest possible prices, while being responsible corporate citizens, taking care of our members and our employees, and respect in our vendors.” (Annual Report 2010)” Costco is the way to go when it comes to online and in-store shopping
Words: 1294 - Pages: 6
Case C – Competition among the North American Wholesale Clubs: Costco Wholesale versus Sam's CLub versus BJ Wholesale 1. List the five (5) most significant strengths and weaknesses of Costco and the primary or support activities in which these strengths and weaknesses are found. Strengths * Good revenue (yearly sales over $300 million generated by warehouse with $131 million actually per store worldwide * Customer Loyalty through its loyal membership (Example of Gold Star membership)
Words: 401 - Pages: 2
in big bulks. Costco and Sam’s club share common features in their distribution technique. Costco’s strategy is to sell mostly private label products at significantly lower costs than branded items. Sam’s club features lowest membership costs out the top three warehouse clubs in North America and sells mostly branded products. Low membership costs attract customers since basically al top three warehouse clubs sell the same products. The strategy of BJ’s wholesale differs from Costco and Sam’s Club
Words: 586 - Pages: 3
Learning Team Reflection Week 5 This paper is a reflection of the Wholesale Retail industry. The companies in question are BJ’s Wholesale Club, Costco Wholesale Warehouse Corporation, Wal-Mart’s Sam’s Club are the three major Retail Wholesale companies in the USA and international. Costco is the number one wholesale warehouse. Our class and specifically our team, Team A, learned about the entrepreneurial forms of business. We learned that the most popular forms of business are the Sole Proprietorship
Words: 457 - Pages: 2
