Table of Contents
•Corporate Governance & Stakeholder Management
•Selling, General & Administrative Expenses
•Porter’s Five Forces
•Threat of New Entrants
•The Bargaining Power of Buyers
•The Bargaining Power of Suppliers
•The Threat of Substitute Products and Services
•Intensity of Rivalry
•Strategic Groups Within an Industry
Financial Reports, Financial Highlights & Company Time Line
Map of Locations & Photos
Costco Wholesale Corporation operates an international chain of membership warehouses, mainly under the "Costco Wholesale" name, that carry quality, brand name merchandise at substantially lower prices than the merchandise typically found at conventional wholesale or retail sources. The warehouses are designed to help small-to-medium-sized businesses reduce costs in purchasing for resale and for everyday business use. Individual consumers may also purchase for their personal needs. Costco's warehouses present one of the largest and most exclusive product category selections to be found under a single roof. Categories include groceries, candy, appliances, television and media, automotive supplies, tires, toys, hardware, sporting goods, jewelry, watches, cameras, books, house wares, apparel, health and beauty aids, tobacco, furniture, office supplies and office equipment. Costco is known for carrying top quality national and regional brands, with 100% satisfaction guaranteed, at prices consistently below traditional wholesale or retail outlets. Members can also shop for private label Kirkland Signature products, designed to be of equal or better quality than national brands, including juice, cookies, coffee, tires, house wares, luggage, appliances, clothing and detergent. The Company also operates self-service gasoline stations at a number of its U.S. and Canadian locations. Additionally, Costco Wholesale Industries, a division of the Company, operates manufacturing businesses, including special food packaging, optical laboratories, meat processing and jewelry distribution. These businesses have a common goal of providing members with high quality products at substantially lower prices. According to Jim Sinegal, the Company's President and Chief Executive Officer, "Costco is able to offer lower prices and better values by eliminating virtually all the frills and costs historically associated with conventional wholesalers and retailers, including salespeople, fancy buildings, delivery, billing and accounts receivable. We run a tight operation with extremely low overhead which enables us to pass on dramatic savings to our members." (7)
Costco Mission Statement
To continually provide our members with quality goods and services at the lowest possible prices. In order to achieve the mission they conduct business with the following Code of Ethics in mind: 1.Obey the law.
2.Take care of their members.
3.Take care of their employees.
4.Respect their suppliers.
Costco believes that if they do these four things throughout the organization, then they will achieve their ultimate goal, which is to: 5. Reward the shareholders (8)
Corporate Governance & Stakeholder Management
There are 13 Directors and Officers, 34 Executive and Senior Officers and 80 Vice Presidents in Costco’s corporate management. (9) Costco Locations
As of December 2005, Costco operated a chain of...