Costco Wholesale in 2012: Mission,

Business Model and Strategy

Anggota Kelompok :
Arini Lubis
Albert Dupa .K
Lamia
Pangondian Harahap
Soraya 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
Were going to be a company thats on a firstname 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?)
Costcos 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.

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

35%
30%
25%
2011
2010
2009

20%
15%
10%
5%
0%
Food

Sundries

Hardlines

Softlines

Ancillary and Other

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 Analysis
Strength, Weakness, Opportunity and Threat

Strength

Weakness

High-quality goods in
low prices
Strong members
renewals
Strong financial
perfomance

Dependences on North
America markets
Very limited products

Opportunity

Threath

Online retail
Create new
market by doing
expansion

Employement
threat
Competitive
disadvantages
Supplier risks

Porters 5 Forces Analysis

Porters 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.