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costco company analysis
BUSINESS RESEARCH ON
COSTCO WHOLESALE CORPORATION

PRESENTED TO: TIM CARROLL

PREPARED BY: YUZHEN LIN ID# 122629 CHENGKAI LV ID# 126218

February 14, 2014

TABLE OF CONTENTS

1. Executive Summary.............................................................................................
2. Company Analysis
3. Industry Analysis.................................................................................................
4. Brand Analysis
5. Competitive Analysis
6. SWOT Analysis
7. Appendices
8. References
Executive Summary Costco Wholesale Corporation operates an international chain of membership warehouses, manly under the “Costco Wholesale” name, that carry quality, brand name merchandise at substantially lower prices than are typically found at conventional wholesale or retail sources. The company is in rapid growth in recent years. Its number of warehouses increased to 634 in 2013 with its net sales and net income grew to 103 billion and 2 billion respectively. However, as the company is entering different geographic market segmentations and expanding its business in North America, it is facing fiercer competition in nowadays than in any other period before. Meanwhile, its potential problems in membership format are in exposure. Effective measurements and solutions are in urgent need for the company. In this report, we will basically cover four areas: examine and identify key information and issues about “Costco Wholesale Corporation” for business intelligence requirements; study the company’s strengths, weaknesses, opportunities and threats and objectively report its operational business information; provide data on company financial performance and competitive benchmarking; make recommendations to the company.

Summary of Costco SWOT analysis:
Strengths
1. premium services and products for club members
2. Price


References: Admin. (2013, May 30). 2013 semiconductor forecast lowered to 6%. Retrieved from http://www.semiconductorintelligence.com/page/3 Cascio, W Costco. (2014, Feb 8). Investor relations. Retrieved from http://phx.corporate-ir.net/phoenix.zhtml?c=83830&p=irol-homeprofile Costco: The pinnacle of value (2010) Costco wholesale corporation SWOT analysis. (2013). Costco Wholesale Corporation SWOT Analysis, , 1-9. Retrieved from http%3a%2f%2fsearch.ebscohost.com%2flogin.aspx%3fdirect%3dtrue%26db%3dbth%26AN%3d89712781%26site%3deds-live%26scope%3dsite Coresolution Charles, K. (2001, Apr 17). Membership warehouse stores. Retrieved from http://www.pcguide.com/buy/ven/src/retailMember-c.html Throughout its history, costco has kept progressing Kirkland Signature. (2014, Feb 08). The quality of named brands, at exceptional value.. Retrieved from http://www.costco.co.kr/eng/about/kirkland/ (2013). Annual report 2013 Brandculturetalk. (2009, mar 6). The one brand that breaks all the rules: Kirkland signature. Retrieved from http://www.brandculture.com/the-one-brand-breaks-all-rules-costco-kirkland-signature/ Corona, R., & Altamirano, N Mellisa, A. (2012, Feb 07). Costco tops list for consumer reports ratings. Retrieved from http://www.mlive.com/business/index.ssf/2012/02/costco_tops_list_for_consumer.html Greenhouse, S www.nytimes.com/2005/07/17/business/yourmoney/17costco.html on May 1, 2006. Coleman-Lochner, L. 2006. Costco service key to outpacingrival Sam’s Club. The Denver Post, March 4: 1C, 8C. Zimmerman, A. 2004. Costco’s dilemma: Is treating employeeswell unacceptable for a publicly-traded corporation? The Wall Street Journal, March 26. Retrieved from www.reclaimdemocracy.org/articles_2004/costco_employee_benefits_walmart.html on May 1, 2006. Ancillary businesses enable costco to seize opportunities. (2014). Mmr, 31(1), 22-22. Retrieved from http%3a%2f%2fsearch.ebscohost.com%2flogin.aspx%3fdirect%3dtrue%26db%3dbth%26AN%3d93817602%26site%3deds-live%26scope%3dsite
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