Costco Wholesale in 2012: Mission, Business Model and Strategy

Anggota Kelompok :Arini LubisAlbert Dupa .KLamiaPangondian HarahapSoraya Inayah Fidran

Company Overview

•Founders : James Sinegal & Jefferey Brotman

•Largest US membership ▫warehouse club 54 M cardholders▫598 stores in 40 states

•Multi-channel retailer•Over $ 90 billion in global sales estimated

in 2012

Vision and Mission•Vision“Our business is to give the customer the best value we can.” – Jim Sinegal CEO & Founder of Costco “ We’re going to be a company that’s on a first-name basis with everyone”• Mission“Continually provide our members with quality goods and services at the lowest possible prices”

Coorporate Strategy

•Penetration pricing•Below the line promotion•Minimalist design stores•Focus on limited products•Build stores on high-trafic areas•“Treasure hunt” shopping experience

Costco's Business Philosophy, Values, and Code of Ethics

•Menaati peraturan•Perhatian kepada member•Perhatian kepada karyawan•Respek kepada supplier•Memberikan reward kepada pemegang

saham

Enviromental

•Manajemen Costco telah beinisiatif untuk mengurangi karbon yang dihasilkan perusahaan melalui investasi dalam berbagai macam sistem penghematan energi dan produk ramah lingkungan.

•Costco juga menjual lebih dari 204 juta lampu hemat energi.

Customers (who?)

•Costco’s target is customers who have $100.000 or more personal income

•Actual average Costco customer is women in large householders with income of $50,000 or more

•Customer visits 8-11 times per year

Membership (how?)

•Gold Star Member = $ 50•Business Member = $ 50•Executive Member = $ 100•Membership fees help Costco

to maintain low margins

Products (how?)• Costco focuses on selling products at low prices,

at very high volume. • Goods are usually bulk-packaged

▫Marketed primarily to large families and businesses.

• Does not carry multiple brands or varieties ▫House brand to sell, under the Kirkland

Signature label. • Results in high volume of sales from single

vendor, allowing further reduction in price, and reducing marketing costs.

Food Sundries Hardlines Softlines Ancillary and Other0%

5%

10%

15%

20%

25%

30%

35%

Costco's Sales by Major Product Category, 2009-2011

201120102009

Costco Today (in 2012)

•558 warehouses worldwide▫Puerto Rico (433 locations)▫Canada (82 locations)▫England (22 locations)▫South Korea (7 locations)▫Japan (11 locations)▫Taiwan (8 locations)▫Australia (3 locations)▫Mexico (32 locations, joint venture with

50% ownership)

SWOT AnalysisStrength, Weakness, Opportunity and Threat

Strength• High-quality goods

in low prices• Strong members

renewals• Strong financial

perfomance

Weakness• Dependences on

North America markets

• Very limited products

Opportunity• Online retail• Create new

market by doing expansion

Threath• Employement

threat• Competitive

disadvantages• Supplier risks

Porter’s 5 Forces Analysis

Porter’s 5 Forces Analysis

Conclusions

•Costco telah memiliki strategi yang menjadikannya berbeda dan unik di banding pesaing lainnya. Namun, terdapat beberapa hal yang harus diperhatikan oleh Costco untuk dapat mempertahankan kelangsungan bisnisnya.