Costco Due Diligence Report

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____________________________________________________________ ______ COSTCO WHOLESALE DUE DILIGENCE REPORT Prepared by: Prepared for: Course: Date: April 23, 2011 ____________________________________________________________ ______ Table of Contents Executive Summary…………………………………………………………………. 4 Industry Overview…………………………………………………………………... 5 Corporate Overview………………………………………………………………… 6 SWOT Analysis…………………………………………………………………….. 12 Culture………………………………………………………………………………. 16 Organization and General Corporate Issues………………………………………… 18 Performance Measurement…………………………………………………………. 28 Financial Overview………………………………………………………………… 36…show more content…
Due to the market; bargains were more important to consumers. Fifty-six of Costco warehouses exceeded $200 million in sales in fiscal 2010, and two of these units each did more than $300 million. This rate of revenue is highly attributable to the strong entrepreneurial culture that encourages its employees and management’s teams to be creative and contribute new ideas to allow the company to constantly evolve and improve. It has been well publicized that Costco rewards and compensates its employees well. It is a well oiled machine that reciprocates its success with its customers and employees. Industry Overview The US warehouse club and superstore industry includes about 20 companies; however the major competitors that Costco faces are Sam 's Club (owned by Wal-Mart), BJ’s Wholesale Club, and Meijer. The club superstore industry is so competitive that these four companies alone hold over 90 percent of sales. These superstores are able to offer competitive pricing because as large companies they can offer a wide selection of products and have purchasing, distribution, marketing, and financing advantages. Due to low margins, the profitability of these individual superstore companies depends on high volume sales and efficient operations. This is where Costco has been able to succeed and set itself aside from the competitors.

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