Costco: Internal/External Analysis

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Costco:Internal / External Analysis

Table of Contents
INTERNAL ANALYSYS:
• About Costco
• Mission Statement
• Corporate Governance & Stakeholder Management
• Locations
• Strategic Objective
• Primary Activities
• Support Activities
Costco Membership
• Financial
• Net Income
• Net Sales
• Membership Fees
• Gross Margin
• Selling, General & Administrative Expenses
• Cash Flows
• Expansion Plans
• Conclusion
EXTERNAL ANALYSIS
• Demographics
• Socio-cultural
• Political/Legal
• Technological
• Economic
• Global
• Environmental Scanning
• Environmental Monitoring
• Competitive Intelligence
• Environmental Forecasting
• Competitive Environment
• 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
• Value Net
• Strategic Groups Within an Industry

Appendix A
Financial Reports, Financial Highlights & Company Time Line
Map of Locations & Photos
Internal Analysis

About Costco
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



Cited: 1. Annual Report 2005. Costco Wholesale. August 28, 2005. http://library.corporate-ir.net/library/83/838/83830/items/177682/CostcoAnnualReportFY2005.pdf 2. Buss, Dale 6. Greenhouse, Steven. How Costco Became the Anti-Wal-Mart. http://www.nytimes.com/2005/07/17/business/yourmoney/17costco.html, July 17, 2005 7. Investor relations 10. Stringer, K. (2004, November 3) Wall Street Journal, p. B.3. Retrieved February 13, 2006, from ABI/INFORM Global database. 12. Duff, M. (2005, December 19). Worldwide Warehouse. DSN Retailing Today, 44(23), 40-41. Retrieved February 13, 2006, from ABI/INFORM Global database. 13. The great Fall of China? (2004, May 13). The Economist. Retrieved February 14, 2006, from www.economist.com/opinion/displayStory.cfm?story. 14. Economy. (2005). Retrieved February 14, 2006, from www.infoplease.com/cele/world/A0856772.html. 15. Clark, K. (2001). Two Strategies, One Popular Segment. Chain Store Age, 77(11), 56-57. Retrieved February 13, 2006, from ABI/INFORM Global database. 16. Sam’s to Sell Health Plans to Some Customers. (2005, December 30). Wall Street Journal, p. A.13. Retrieved February 13, 2006, from ABI/INFORM Global database. 17. Hudson, K. (2005, November 11). Warehouses Go Luxe; Costco, Sam’s Club Stock Wine Coolers, Grand Pianos to Tempt Holiday Shoppers. Wall Street Journal, p. B.1. Retrieved February 13, 2006, from ABI/INFORM Global database. 18. Henderson, Nell. (2006, February 14). Healthy Economic Growth Predicted. The Washington Post, p. D01. Retrieved February 14, 2006, from www.washingtonpost.com/wp-dyn/content/article/2006/02/13/AR2006021301904.html 19. Costco Wholesale 26. The Costco Challenge: An Alternative to Wal-Martization? (July 5, 2005) by Moira Herbst: www.laborresearch.org/print.php?id=391

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