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SummaryRevenues of 71 Billion550 Warehouses Today – Operates in:40 States9 Countries$137 million average sales/warehouse141,000 square feet/warehouse143,000 employees worldwideMore than 1.4 million transactions/day
SummaryRevenues of 71 Billion550 Warehouses Today – Operates in:40 States9 Countries$137 million BackgroundCEO: James SinegalHeadquarters: Issaquah, WAInception: Seattle, WA 1983Stock Symbol: COST (NASDAQ)Founders: James Sinegal & Jefferey Brotman Corporate StrategyCost strategyPenetration PricingBelow the Line PromotionNo frills“Diversion” Buying Strategy“Treasure hunt Customers (Who)Costco targets independent small business owners who have typically $100,000 or Membership (How)Gold Star Member = $ 50Business Member = $ 50Executive Member IndustriesRetailDiscount and Variety RetailWarehouse Clubs and Superstores (primary)Gasoline RetailersGrocery RetailNonstore RetailInternet RetailConsumer Costco Today550 warehouses Worldwide 403 in US76 in Canada21 in UK6 in SWOT Analysis Strengths54.1m loyal cardholdersStrong member renewalsAbsolute pricing authorityExceptional employeesExcellent merchandiseQuality image WeaknessesCannibalizationCostco's overexpansion domestically risks cannibalizing the sales of preexisting storesJames Sinegal leaveMaintaining OpportunitiesRecession has allowed Costco opportunities for luxury-item deals, including the chance to ThreatsBeing a global retailer means that you are exposed to political problems
Слайды презентации

Слайд 2 Summary
Revenues of 71 Billion
550 Warehouses Today – Operates

SummaryRevenues of 71 Billion550 Warehouses Today – Operates in:40 States9 Countries$137

in:
40 States
9 Countries
$137 million average sales/warehouse
141,000 square feet/warehouse
143,000 employees

worldwide
More than 1.4 million transactions/day

Слайд 5 Background
CEO: James Sinegal

Headquarters: Issaquah, WA

Inception: Seattle, WA 1983

Stock

BackgroundCEO: James SinegalHeadquarters: Issaquah, WAInception: Seattle, WA 1983Stock Symbol: COST (NASDAQ)Founders: James Sinegal & Jefferey Brotman

Symbol: COST (NASDAQ)

Founders: James Sinegal & Jefferey Brotman


Слайд 6 Corporate Strategy
Cost strategy
Penetration Pricing
Below the Line Promotion
No frills
“Diversion”

Corporate StrategyCost strategyPenetration PricingBelow the Line PromotionNo frills“Diversion” Buying Strategy“Treasure hunt

Buying Strategy
“Treasure hunt" shopping experience


Слайд 7 Customers (Who)
Costco targets independent small business owners who

Customers (Who)Costco targets independent small business owners who have typically $100,000

have typically $100,000 or more of personal income
Actual average

Costco customer is women in large householders with income of $50,000 or more
Most popular with Hispanic and Asian ethnic groups
Typically customer visits 8-11 times per year

Слайд 8 Membership (How)
Gold Star Member = $ 50
Business Member

Membership (How)Gold Star Member = $ 50Business Member = $ 50Executive

= $ 50
Executive Member = $ 100
Membership fees allow

Costco
to maintain low margins


Слайд 9 Industries
Retail
Discount and Variety Retail
Warehouse Clubs and Superstores (primary)
Gasoline

IndustriesRetailDiscount and Variety RetailWarehouse Clubs and Superstores (primary)Gasoline RetailersGrocery RetailNonstore RetailInternet

Retailers
Grocery Retail
Nonstore Retail
Internet Retail
Consumer Services
Optical Services
Travel Agencies and Services
Financial

Services
Lending
Mortgage Banking and Related Services
Insurance
Property and Casualty
Autos and Other Vehicles
Homeowners Insurance

Слайд 10 Costco Today
550 warehouses Worldwide
403 in US
76 in

Costco Today550 warehouses Worldwide 403 in US76 in Canada21 in UK6

Canada
21 in UK
6 in Korea
5 in Taiwan
8 in Japan
31

in Mexico

Слайд 11 SWOT Analysis

SWOT Analysis

Слайд 12 Strengths
54.1m loyal cardholders
Strong member renewals
Absolute pricing authority
Exceptional employees
Excellent

Strengths54.1m loyal cardholdersStrong member renewalsAbsolute pricing authorityExceptional employeesExcellent merchandiseQuality image

merchandise
Quality image


Слайд 13 Weaknesses
Cannibalization
Costco's overexpansion domestically risks cannibalizing the sales of

WeaknessesCannibalizationCostco's overexpansion domestically risks cannibalizing the sales of preexisting storesJames Sinegal

preexisting stores
James Sinegal leave
Maintaining high wages
Costco's average pay, for

example, is $17 an hour, 42 percent higher than its fiercest rival, Sam's Club
Maintaining profit margins

Слайд 14 Opportunities
Recession has allowed Costco opportunities for luxury-item deals,

OpportunitiesRecession has allowed Costco opportunities for luxury-item deals, including the chance

including the chance to sell prime-grade meat that used

to go almost exclusively to restaurants. With people eating out less often, said Sinegal, "there are not as many steaks being sold in restaurants, and we're selling them."
To take over, merge with, or form strategic alliances with other global retailers, focusing on specific markets such as Europe or the Greater China Region.
The stores are currently only trade in a relatively small number of countries. Therefore there are tremendous opportunities for future business in expanding consumer markets, such as China and India.

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