Company Overview Of Costco: Craig Jelinek
The first Costco opened in 1983. It was founded by James Sinegal and Jeffery Bortman. Around that same time Sol Price and his brother Robert started a company called Price Club that served small businesses in San Diego, California. In 1993, the two merged and since then have become the second largest wholesale retailer in the world. The current CEO is Craig Jelinek. Jelinek joined the Costco team in 1984 and has worked in various positions ultimately ending up as the CEO in 2010. Along with CFO, Richard A. Galanti, Jelinek is also backed by 12 Independent Directors and together they make all business decisions. Costco produces sales in the wholesale membership market and primarily competes with Sam’s Club, Wal-Mart, and Target. Costco focuses on a structure of low prices with high sales volume. Its members are primarily small businesses and families who buy in bulk. Since inception, Costco has produced goods from its in house manufacturer, Kirkland Signature. Costco doesn’t buy from lots of different brands rather relies on Kirkland Signiture to make equal or better products for a cheaper price. With all the sales you get at Costco, purchasing these goods at a cheaper cost actually comes at a price. Costco only sells to its members and membership fees range anywhere from US $55 to US $110. With over 70 Million Members it is has the most members on any wholesale corporation. …show more content…
It has had a steady growth in sales and just last year reached over $110 Billion. Costco also prides itself on treating its employees really well with good benefits and higher wages. Compared to Wal-Mart’s Sam’s Club, Costco’s main competitor, Costco has nearly twice as many members. It also offers its members a great 90 day warranty where a member can replace any item no questions asked. It is able to do this because of its great relationships with its
Environmental Sc Costco And Sam's Club
1117 Words | 5 PagesThe prices must stay competitive, so they have an internal Costco research team. The price and the quality must always be reviewed on a continuous basis. As crazy as it is Sam’s club is owned by what Wal-Mart. Sam’s Club and Costco are almost the same if you consider the products and services that they both deliver. When it comes to the research that needed for the product expectations and supplier preference.
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672 Words | 3 PagesAt Costco, there are 2 different memberships which are executive and gold star, the executive membership is $120/year and the benefits it gives you are a 2% annual reward, Costco services discounts, shop online/warehouses, and it includes 2 membership cards. Whereas the gold star membership is $60/year and allows you to shop online/warehouse and it includes 2 membership cards. Sam's Club also offers different memberships known as Sam's Clubs Club or Plus. The club membership at Sam's Club is $50/year and allows you curbside pickup
Cost Shop Vs Costco Company
112 Words | 1 PagesPRICE CLUB and COSTCO more than the current market for the merger of the two stores. PRICE CLUB for the world's first member of the wholesale and retail stores, was founded in 1976 in San Diego, California, initially to serve small businesses, and later to serve the wider consumer masses, they are open for a group of each purchase , And the first COSTCO stores in 1983, was established in Seattle, Washington, in its business just six years, the annual turnover from 0 to grow to 3 billion US dollars. The two companies merged in 1993 to become PRICECOSTCO and in 1998 they changed their name from Pleasant to Costco Company
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926 Words | 4 PagesThe introduction of Costco, an extremely large business to a semi rural area will have both pros and cons for not only the area but also Costco itself. These issues include • Political Implications • Environmental Implications • Social implications • Technological Implications • Legal Implications • Economic Implications Political – Political implications on the local community would obviously include legislation and regulation. For example the products they are able to sell and also the local politicians will campaign for or against it. The government controls the sale of certain products; this means that for Costco to want to sell particular products such as alcohol there is legislation that they must abide by. Costco will also have to
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748 Words | 3 PagesThey do not have as many stores meaning that the average store approximately receives 100 million dollars a year in sales. Costco focuses on selling in bulks with larger sized quantities and focuses less on everyday goods. Doing this means they are able to increase the volume of particular items and keep prices low. In addition, Costco has perfected a purchasing strategy known as the “treasure hunt” which refers to new incoming items and deals that spontaneously come and
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812 Words | 4 PagesGold Star membership targets the individual or typical household and is offered at $55.00 for an annual membership. Business membership also cost $55.00 for an annual fee and includes household membership and focuses on business owners and managers. This type of membership is used for the purchase of products for business use, personal use, and resale use. The membership owner may add up to an additional six members for an annual of $55.00 each. The Business membership is Costco core target of offering small businesses products with reduced costs intended for resale.
Critical Analysis Of Costco
776 Words | 4 PagesKey Trends – Globalisation One of the main opportunities Costco has is more global expansion to specific targeted countries. Although operating in many countries, Costco is heavily dependent on the U.S. and Canadian markets. It still has the opportunity to expand into the Asian and Australian markets where it has a limited presence. Costco has the capability to operate about 100 stores in Taiwan, Korea and Japan combined and about 20 stores in Australia. It currently has 41 stores in Taiwan, Korea and Japan combined and 6 stores in Australia.
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