Costco Wholesale Corporation Mission Business Model and Strategy Essay Example
Costco: Marketing Audit
I. Company Description
In September of 1983, Costco Wholesale Corporation began operations in Seattle, Washington. The company was founded by James Sinegal, current President and CEO of Costco, and Jeffrey Brotman, Chairman of the Board of Directors. In October of 1993 Costco merged with a Delaware company called The Price Company to form Price/Costco, Inc. The Price Company was the first to establish the concept of a membership warehouse. In 1999, the company changed its name to Costco Wholesale Corporation and moved themselves back to Washington. Costco is currently one of the largest retail stores in the industry.
II. Business Mission
Costco’s mission statement is to focus on bringing high quality goods and services to the market at the lowest possible prices every day, but to do it with integrity at every level of the company while valuing the interests of the stakeholders (Annual Report 2006). The mission statement is well understood throughout the organization. Costco offers their customers with low prices on selected private and a limited selection of nationally branded products in a wide range of merchandise categories. Businesses and families can rely on Costco to offer high quality goods and services at every day low prices. Rapid inventory turnover, high sales volume per warehouse, leveraging an efficient operating structure, reduced handling of merchandise, and making themselves the low cost operator in retail are all key elements that make the company so successful (Annual Report 2006). Costco defines its business in terms of benefiting their customers. Creating value to a Costco membership card is a top priority throughout the company.
In addition to offering low prices on top-quality goods and a variety of convenient services, Costco strives to be a valuable asset to every community where they do business. This means providing good jobs at good pay, being involved in community activities and charities,
I. Company Description
In September of 1983, Costco Wholesale Corporation began operations in Seattle, Washington. The company was founded by James Sinegal, current President and CEO of Costco, and Jeffrey Brotman, Chairman of the Board of Directors. In October of 1993 Costco merged with a Delaware company called The Price Company to form Price/Costco, Inc. The Price Company was the first to establish the concept of a membership warehouse. In 1999, the company changed its name to Costco Wholesale Corporation and moved themselves back to Washington. Costco is currently one of the largest retail stores in the industry.
II. Business Mission
Costco’s mission statement is to focus on bringing high quality goods and services to the market at the lowest possible prices every day, but to do it with integrity at every level of the company while valuing the interests of the stakeholders (Annual Report 2006). The mission statement is well understood throughout the organization. Costco offers their customers with low prices on selected private and a limited selection of nationally branded products in a wide range of merchandise categories. Businesses and families can rely on Costco to offer high quality goods and services at every day low prices. Rapid inventory turnover, high sales volume per warehouse, leveraging an efficient operating structure, reduced handling of merchandise, and making themselves the low cost operator in retail are all key elements that make the company so successful (Annual Report 2006). Costco defines its business in terms of benefiting their customers. Creating value to a Costco membership card is a top priority throughout the company.
In addition to offering low prices on top-quality goods and a variety of convenient services, Costco strives to be a valuable asset to every community where they do business. This means providing good jobs at good pay, being involved in community activities and charities,