Costco Competitive Analysis Essay

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|Costco | |ESC-Accounting and Finance | | | |This case analysis will analyze the efficiency and health of the organization. This | |case analysis was created using the textbook and the Stanford Graduate School of | |Business. Costco Wholesale Corporation Financial Statement Analysis (A) Case A-186A.| |19 June 2003. | | | | I. Executive Summary…show more content…
They truly started to differentiate themselves as a one stop shop. (Miller, 2011) The strategy for Costco was that the company continued to buy merchandise at volume discounts from manufacturers, rather than distributors. The stock is usually shipped directly to selling warehouses to minimize freight costs. Stocked items are placed directly onto the selling floor or are still stacked on their pallets, reducing handling and stocking labor. The number of sales and service employees is also minimal, with a large percentage of the employees holding part-time status. Warehouses are almost entirely self-service, from finding and buying items, to loading them into a customer's vehicle. (Miller, 2011) Smart strategy allowed Costco by the end of 1993, to open its 100th store, including an international store in Canada, and boasted a 2 for 1 stock split and a 3 for 2 stock splits respectively. In 1993, the shareholders for both Costco and Price Company approved a merger, to create PriceCostco. The two companies, who were once competitors, were now merged and moving globally. By 1997, PriceCostco had opened stores in Essex, England, Seoul, Korea, and Taiwan, and were up to 200 in total. These stores were now setting up in-store Hearing Aid centers and gas station pumps in their parking lots. (HHC Publishing, 2010) In August of 1999, PriceCostco reincorporates and changed its name to just Costco Companies Inc. Now heading
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