The first store was opened in Seattle, Washington in Costco’s mission is to continually provide their members with quality goods & services at the lowest possible prices. In order to achieve their mission they will conduct their business with the following code of ethics in mind: Obey the law Take care of their members Take care of their employees Respect their vendors If they do these four things throughout their organization, then they will realize their ultimate goal, which is to reward their shareholders. History

Costco made $ billion in revenue in total locations worldwide 461 of those locations are in the United States 71.2 million cardholders 185,207 full and part-time employees Current stock price is around $ % of Costco’s operating income is generated through membership fees Current Overview

Costco’s small number of SKU’s drive their business strategy Having a small SKU means you can easily fit the inventory on pallets in the warehouse store while still making it easily accessible to consumers Costco uses a prepaid membership business model that allows Costco to collect most of its profits 12 months in advance Offers key products (such as milk) at a slightly lower price than other membership based warehouse stores, such as Sam’s Club, giving it a lead in the market Frequently changes brands and merchandise giving consumers a “treasure hunt experience” Retail Strategy

Strengths Private label brand (Kirkland Signature) Happy employees & Skilled managers Loyal members Kind return policy Economies of scale Additional services (i.e.: pharmacy, photo developing, gas station, tire shop, food court) Membership rewards Cost advantage over rivals Good customer service capabilities Free samples

Weaknesses Inconsistent inventory Little variety in merchandise Online-store Store size Behind on R&D Supplier dependency Number of locations

Improved online store and ecommerce Continued growth and expansion in their private label sector Continued international expansion Costco currently has locations in the United States, Canada, Mexico, United Kingdom, Japan, South Korea, Puerto Rico, Taiwan, Australia, and Spain Opportunities

Price competition (Sam’s Club and Walmart) Online retailers with large selection and inventory Threats

Oregon State University. "Evaluating a Company's Resources, Cost Position, and Competitiveness." Integrative Strategic Experience BA 466. N.p.: McGraw-Hill Education, Print. Shields, Anthony. "Costco Remains the Wholesale King, but Is It an Ideal Investment?"Minyanville. Minyanville, 12 Nov Web. 12 Jan References