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costco shop

SummaryRevenues of 71 Billion550 Warehouses Today – Operates in:40 States9 Countries$137 million average sales/warehouse141,000 square feet/warehouse143,000 employees worldwideMore than 1.4 million transactions/day

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Слайд 1


Слайд 2Summary
Revenues of 71 Billion
550 Warehouses Today – Operates in:
40 States
9

Countries
$137 million average sales/warehouse
141,000 square feet/warehouse
143,000 employees worldwide
More than 1.4

million transactions/day
SummaryRevenues of 71 Billion550 Warehouses Today – Operates in:40 States9 Countries$137 million average sales/warehouse141,000 square feet/warehouse143,000 employees

Слайд 5Background
CEO: James Sinegal

Headquarters: Issaquah, WA

Inception: Seattle, WA 1983

Stock Symbol: COST

(NASDAQ)

Founders: James Sinegal & Jefferey Brotman

BackgroundCEO: James SinegalHeadquarters: Issaquah, WAInception: Seattle, WA 1983Stock Symbol: COST (NASDAQ)Founders: James Sinegal & Jefferey Brotman

Слайд 6Corporate Strategy
Cost strategy
Penetration Pricing
Below the Line Promotion
No frills
“Diversion” Buying Strategy
“Treasure

hunt" shopping experience

Corporate StrategyCost strategyPenetration PricingBelow the Line PromotionNo frills“Diversion” Buying Strategy“Treasure hunt

Слайд 7Customers (Who)
Costco targets independent small business owners who have typically

$100,000 or more of personal income
Actual average Costco customer is

women in large householders with income of $50,000 or more
Most popular with Hispanic and Asian ethnic groups
Typically customer visits 8-11 times per year
Customers (Who)Costco targets independent small business owners who have typically $100,000 or more of personal incomeActual average

Слайд 8Membership (How)
Gold Star Member = $ 50
Business Member = $

50
Executive Member = $ 100
Membership fees allow Costco
to maintain

low margins

Membership (How)Gold Star Member = $ 50Business Member = $ 50Executive Member = $ 100Membership fees allow

Слайд 9Industries
Retail
Discount and Variety Retail
Warehouse Clubs and Superstores (primary)
Gasoline Retailers
Grocery Retail
Nonstore

Retail
Internet Retail
Consumer Services
Optical Services
Travel Agencies and Services
Financial Services
Lending
Mortgage Banking and

Related Services
Insurance
Property and Casualty
Autos and Other Vehicles
Homeowners Insurance
IndustriesRetailDiscount and Variety RetailWarehouse Clubs and Superstores (primary)Gasoline RetailersGrocery RetailNonstore RetailInternet RetailConsumer ServicesOptical ServicesTravel Agencies and ServicesFinancial

Слайд 10Costco Today
550 warehouses Worldwide
403 in US
76 in Canada
21 in

UK
6 in Korea
5 in Taiwan
8 in Japan
31 in Mexico

Costco Today550 warehouses Worldwide 403 in US76 in Canada21 in UK6 in Korea5 in Taiwan8 in Japan31

Слайд 11SWOT Analysis

SWOT Analysis

Слайд 12Strengths
54.1m loyal cardholders
Strong member renewals
Absolute pricing authority
Exceptional employees
Excellent merchandise
Quality image

Strengths54.1m loyal cardholdersStrong member renewalsAbsolute pricing authorityExceptional employeesExcellent merchandiseQuality image

Слайд 13Weaknesses
Cannibalization
Costco's overexpansion domestically risks cannibalizing the sales of preexisting stores
James

Sinegal leave
Maintaining high wages
Costco's average pay, for example, is $17

an hour, 42 percent higher than its fiercest rival, Sam's Club
Maintaining profit margins
WeaknessesCannibalizationCostco's overexpansion domestically risks cannibalizing the sales of preexisting storesJames Sinegal leaveMaintaining high wagesCostco's average pay, for

Слайд 14Opportunities
Recession has allowed Costco opportunities for luxury-item deals, including the

chance to sell prime-grade meat that used to go almost

exclusively to restaurants. With people eating out less often, said Sinegal, "there are not as many steaks being sold in restaurants, and we're selling them."
To take over, merge with, or form strategic alliances with other global retailers, focusing on specific markets such as Europe or the Greater China Region.
The stores are currently only trade in a relatively small number of countries. Therefore there are tremendous opportunities for future business in expanding consumer markets, such as China and India.
OpportunitiesRecession has allowed Costco opportunities for luxury-item deals, including the chance to sell prime-grade meat that used

Слайд 15Threats
Being a global retailer means that you are exposed to

political problems in the countries that you operate in.
The

cost of producing many consumer products tends to have fallen because of lower manufacturing costs. Manufacturing cost have fallen due to outsourcing to low-cost regions of the World. This has lead to price competition, resulting in price deflation in some ranges. Intense price competition is a threat.
Bad economic times (current recession)
ThreatsBeing a global retailer means that you are exposed to political problems in the countries that you

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