Costco Wholesale Corporation

1.0 MISSION STATEMENT

Costco Wholesale Corporation is the second largest retailer in the world.This position shows Costco's viability in following its mission statement and vision statement through proper strategic objectives. In Costco Wholesale, its vision statement emphasizes customer’s experience and satisfaction. Then again, Costco’s mission statement determines the purpose and strategies needed to accomplish the vision. Costco’s mission statement implies that the organisation aims “to continually provide our members with quality goods and services at lowest possible prices”. Its mission statement highlights the significance of creating value for customers, particularly through pricing. From this mission statement, the following points include quality goods and services such as electronics, furniture, outdoor living, and delivery service at prices that are as low as possible, and continuous offers. The company’s mission statement displays that Costco uses quality as one of their selling points. This is an important factor because they have numerous competitors that compete against Costco on the low pricing basis. From the mission statement, it also expresses low prices as a significant selling point. The discounts, promotions, and low prices at Costco attracts the customer to shop at Costco. In addition, the mission statement demonstrates that the offers are constantly available at Costco stores to the members. A vital goal connected to the mission statement is to build up an inventory network that backs up high quality and cost minimization.

2.0 SITUATION ANALYSIS

2.1 INTERNAL ENVIRONMENT

        2.1.1 Organization Background

Costco was found in 1976 under the Price Club name in San Diego. It started off by serving only small businesses, and the company felt that they have the potential to have a massive buying influence by also serving an amount of non-business members.At first, Price Club was restricted only to business members who could buy a wide variety of supplies and wholesale items. James Sinegal, the official vice president merchandising, marketing, and distribution was instrumental in tuning the stock and marketing strategies, transforming the Prince Club into a success example that changed the substance of retailing around the world. After seven years, James Sinegal diverted his expertise into helping to develop Costco Wholesale with Jeff Brotman. With them working together, they opened the first warehouse in Seattle, Washington in 1983.

Throughout the following decade, both Price Club and Costco Wholesale kept on enhancing and develop, and in 1993, the two retailers merged, creating a skilled leadership group that soon made Costco world’s most successful wholesales store.

Today, as the company develops, they maintains their consistency with their traits that draws and retain millions of loyal customers around the world. The first, commitment to quality, Costco warehouse hold about 4000 SKUs (stock keeping units) as compared to other warehouse that carries 30,000 SKUs. This is because Costco picked their item based on quality, value, brand, and features but still offering the best value to customers.