Costco Case Analysis

Only available on StudyMode
  • Download(s): 238
  • Published: November 9, 2014
Read full document
Text Preview

Table of Contents
Executive Summary2
Mission and Values4
Strategic Path Forward5
Goal 1 Strategies6
Goal 2 Strategies6
Lead Measurement7
Moving Forward7
Warehouse Stores and Supercenters Industry Analysis8
Warehouse Stores an Supercenters Industry Performance9
Products and Markets10
Key Success Factors12
Shopping Experience14
Online Retail15
Financial Analysis16
Income Statement16
Balance Sheet and Stockholder Equity16
Statement of Cash Flow17
Liquidity and Efficiency23
Financial Leverage26
Cash Flow Analysis26
Statement of Stockholders Equity Analysis27
Generate Additional Profit31
Organization Analysis33
Mission, Vison, and Values33
Current Strategy and Business Model34
Expanding Across Industries35
Key Success Factors35
Customer Loyalty36
Human Resources37
Brand Recognition37
Costco CRX Technology37
Distribution Channel38
Appraisal and the Future38

The following is an analysis of Costco Wholesale Corporation. As a group, we are tasked with defining our position in the industry by producing an executive summary, giving a broad industry analysis, a complete financial analysis, an organizational analysis, and producing what we feel is Costco’s issue statement. Our primary objective is to use said information in determining the future direction that most benefits stakeholders while furthering customer value.

Costco Wholesale Corporation is the leading competitor in the warehouse industry in the United States, and one of the largest retailer outlets in the world. Founded in 1976, Costco grew from its roots in Seattle, Washington in 1983 to a worldwide corporation expanding over 9 countries and gaining over 71 million members as of 2013 and a retention rate of over 90 percent. With this sort of power, Costco recognizes its leadership in an industry where imitation is causing sameness, something that originally set us apart from our competitors. We believe that the following should be our focus to enhance our business in order to separate ourselves further: Costco Online

Increased Membership Revenue and Retention
Increased Membership
Our memberships are always rising, along with our store openings and customer retention. This is the key to our revenue streams. Our group has come up with a number of beneficial activities that will help enhance membership and create wealth for the company. Costco Online

We are lagging in terms of our online store. By our estimates, we lag where other retailers prosper. Costco always strives to be the best in terms of customer value, but in the ever-changing environment of online retailing, we are behind and need to be more like Amazon. We need to bring our core values and structure to the online retail business and up our online revenue from 2 percent over the next year. WHO WE ARE

In just a little over 20 years, Costco Wholesale Corporation grew from its original location in Seattle to a multination corporation expanding across 9 different countries around the world. As of August 2014, our location is as follows with many more to follow in the coming months: 468 locations in 43 U.S. States & Puerto Rico

88 locations in nine Canadian provinces
26 locations in the United Kingdom
10 locations in Taiwan
11 locations in Korea
20 locations in Japan
6 locations in Australia
33 locations in 18 Mexican states
1 location in Spain
Our annual revenue has grown from over 99.13 billion in 2012 to 105.15 billion in 2013. We are the seventh largest retailer in the world, but place second in the United States while attaining the largest membership base. We pride ourselves on our annual membership retention rate, which is over 90 percent. Being that this is a revenue...
tracking img