Costo Wholesale I 2008 Mission Business Model and Strategy

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 Sylhet International University

Shamimabad, Sylhet.

 Strategic Management

Assignment: Case Study: Costo Wholesale I 2008 Mission Business Model and Strategy”.

                   Submitted to:        

Shawkat Ara Khanom

                                                      Assistant  Professor

                            Department of Business Administration

                Sylhet International University

Shamimabad, Sylhet.

                  Submitted By:    

                                              Shagatam Das (16205)

                                              MBA(Executive)

Date of submission:  30 January, 2015

Letter of Submission

30 January, 2015

Shawkat Ara Khanom

Assistant  Professor

Department of Business Administration

Sylhet International University

Shamimabad, Sylhet.

Fall September-2014

MBA Program

Subject: Submission of Assignment on “Case Study: Costo Wholesale I 2008 Mission Business Model and Strategy”.

Dear Madam,

It was a privilege and great pleasure for me to be assigned with such a remarkable venture of making the assignment on “Case Study: Costo Wholesale I 2008 Mission Business Model and Strategy”.I, humbly appreciate the opportunity that you have given through this assignment to help us in building my knowledge about the “Case Study: Costo Wholesale I 2008 Mission Business Model and Strategy”. and its implications in various sectors.

I, respectfully acknowledge your assistance that you extended throughout the class.

Thanking you,

Regards,

(Shagatam Das)        

ID-16205

Acknowledgement

At first I would like to express  my sincere gratitude to my  honorable Class Teacher Shawkat Ara Khanom for not only providing me with an opportunity to prepare this assignment but also for sharing her views and expertise in the classroom.

I would also like to thank my classmates for sharing the valuable information regarding the underlined topics. Their co-operations have a contribution to the completion of the assignment.

  Vision & Mission of Costco Wholesale in 2008:

Mission:

Continually provide our members with quality goods and services at the lowest possible prices.

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.”

Costco:

Founded in 1983, Costco Wholesale Corporation is the largest membership (57 million members) warehouse club chain in the world, based on sales volume ‐ Costco is only open to members and their guests. Costco operates an international chain of membership warehouses, mainly under the "Costco Wholesale" name, which carry quality, brand name merchandise at substantially lower prices than are typically found at conventional wholesale or retail sources. The warehouses are designed to help small‐to‐medium‐sized businesses reduce costs in purchasing for resale and for everyday business use. Individuals may also purchase for their personal needs.  It is the fifth largest general retailer in the United States. Revenues of over $70 billion USD (2008) are generated through a workforce of approximately 142,000 employees. Costco focuses on selling products at low prices, often at very high volume. These goods are usually bulk‐packaged and marketed primarily to large families and businesses. Additionally, Costco does not carry multiple brands or varieties where the item is essentially the same. This results in high volume of sales from single vendors, allowing further reduction in price, and reducing marketing costs. Costco also saves money by not stocking extra bags or packing materials. To carry out their goods, customers must bring their own bags or use the merchandise shipping boxes from the company's outside vendors. Costco has over 500 locations [2009]  – mainly in the US but also in Mexico, the UK, Japan and other countries. According to Jim Senegal, the Company's President and Chief Executive Officer, "Costco is able to offer lower prices and better values by eliminating virtually all the frills and costs historically associated with conventional wholesalers and retailers, including salespeople, fancy buildings, delivery, billing and accounts receivable. We run a tight operation with extremely low overheads which enables us to pass on dramatic savings to our members." Wholesale, Other www.Costco.com The first film focuses downstream on Costco ‐  managing the supply chain to reduce costs and become more efficient thus providing a competitive advantage. The second film focuses on how this can be achieved through one supplier as an example of supply chain management.