Costco Wholesale Corporation

Costco Wholesale Corporation

Barbre-Anne Wasdin

Lynn University

Costco Wholesale Corporation

Costco Wholesale Corporation

Abstract

     Costco Wholesale Corporation is renowned as one of the major wholesale club warehouse in the United States. Costco was founded with a single store in Seattle in 1983 and within six years topped $3 billion in sales (Fortune 500, 2014).  Costco Wholesale Corporation was the first company to go from zero to $3 billion sales in less than six years. Costco operates global membership warehouses that convey superiority, as well as trademark products at lower prices than any other conventional wholesale or retail foundation. Their business approach depends on high sales volume with prompt inventory return, which makes it feasible to offer lower prices. Additionally, limited product choices along with a wide-range assortment of branded and private label products will help the retailer reserve active growth during a slow economy. They concentrate on selling exclusive goods and trademarks at lower prices, frequently at a very high volume. Costco differentiates from others by delivering limited, precise items in each product line, while their competitors like BJ's and Wal-Mart offer many products.

     Their approach is a mixture of low-cost provider and variation. Costco's drive behind the broad differentiation is because they do not provide a wide range of products but in its place they offer the most current products on the market. There are other retailers who stock over 40,000 diverse products, but Costco will present members with only 4,000 products from which to select. Their scheme is combined with unique resources and abilities because they have purchasing power, high-sales-volume, fast inventory revenue and excellent customer service. Their mission is to deliver their consumers with quality goods and services at lowest possible prices every day. They categorize their business in provisions of helping their clients.

     Largely Costco's idea has been very useful, and should continue this approach for the future. The rationale that Costco is so lucrative is because of their positive actions they have regarding their employees, which influences their customers in an optimistic way. This makes consumers choose to return and also permits them to disperse the expression for new consumers who are entering the market. Costco will preserve to grow up only if they follow their creditable views and observable models. The retail industry has immensely competitive environments, which poses various challenges for Costco and its rivals. Since most of all the stores offer the identical merchandise, it occasionally becomes very tough for consumers to individualize items amongst the various retail stores.