Costco Wholesale Corporation ( Cost )

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Costco is a world’s largest warehouse chain wholesale, as well as second largest world retailer as in 2015, and it has about 672 warehouses all around the world. (Costco, n.d.) As shown from their own website, “Costco is a membership warehouse club, dedicated to bringing our members the best possible prices on quality brand-name merchandise.” (Costco Wholesale Corporation(COST), 2015) Costco is a big success in wholesale and retailer industry, and it has its unique value chain business model that make it outperform other competitors, such as Wal-Mart or Target. As go through all the research sources, Costco has focused on the following primary and supporting actives: • Suppliers: Costco has a famous business model, in which it maintains a good relationship with suppliers, because Costco is buying huge quantities, and general they are getting lower or similar price on same products compared to other buyers. So they get the price no higher than other retailers, and they still keep the price down to save for people. Sometimes, the vendor would show them the cost of goods, and let them decide how much the buy price would be to benefit both and have the fair profit, as indicated by their merchandise manager Claude Gravel (Haney, 2011). • Products: Costco is a wholesale and buy most goods directly from supplier. Costco carries fewer kinds of products, typically 4000, compared to 100,000 of Wal-Mart. Those products are usually sold in large quantity, for example, bottled water is
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