1. James Kidwell Brad Granger Ashley Kerekanich

2. Company Profile Jim Sinegal, cofounder and CEO of Costco Wholesale
Began in Seattle 1983
Mission Statement: To continually provide our members with the quality goods and services at the lowest possible prices

3. Business Model
Generate high sales volume and rapid inventory turnover by offering members low prices on a limited selection of nationally branded and selected private-label products in a wide range of merchandise categories

4. Target Market
Consumers who prefer low prices, limited selection and treasure hunt shopping environment
Business Memberships
Urbanites
Nice neighborhoods not far from Costco
Middle Age with above average incomes
Large families and consumers who only go large bulk shopping an average of 23 times a year

5. Competitors Super Savers???????? BJ’s Wholesale Club Wal-Mart
Offers wider range of products
Focuses on individual consumer
Clustering club locations
Wal-Mart
Sam’s Club

6. Advertising
Limited to direct mail programs promoting selected merchandise to existing members
Occasional direct mail to new customers
WOM (Word of Mouth)
existing consumers and acquaintances
Campaigns for new warehouse openings
Teams personally contact qualified consumers

7. Store Layout Treasure hunt Merchandising Warehouse
the center
Electronics in a corner
Bakery and Meat in the back of the store
Alcohol in a corner
Food & Household/Business Supplies on Outside
Furniture in the front and center

8. SWOT Strengths Opportunities Weaknesses Threats Loyal customer base
Products in bulk for cheaper
Wide variety of inventory
Affluent customers
Employee retention
Good management
Return policy
Low shrinkage
Strong private label
Membership to help small business
Growth in more profitable customers
Opportunities
Membership growth
International opportunity
E-commerce
Advertising opportunities
Increase self checkout
Weaknesses
Lack of advertising
No shopping bags
No self checkout
Less focus on individual customers
Limited small quantity products
Shorter weekend hours then competitors
Hard to find stores in some areas.
Threats
Similar Competitors (BJ’s Sam’s Club)
Cheaper bargain stores (Big Lots, WalMart)

9. Questions Do any of you have your own Costco membership?
Do your parents own Costco Memberships
Do you enjoy the free samples
Do you agree with Costco’s limited selection?

10. References
Essentials of Strategic Management- A quest for the competitive advantage
John E Gamble
Arthur A Thompson Jr