Costco Wholesale Corporation Is A Company

1156 Words Nov 27th, 2015 5 Pages
Background and Industry
COSTCO Wholesale Corporation is a company that started its operations back in 1983, in Seattle, Washington. It is internationally recognized and deals with goods that are sold at considerably discounted rates. Its customers are purely members of the Costco Wholesale. COSTCO’s Wholesale Corporation major competitor is BJ’s Wholesale Club, another membership warehouse.
Financial Position
COSTCO Wholesale Corporation, BJ’s Wholesale Club and Sam’s Club are the top players in the warehousing business. However, of all three, COSTCO Wholesale Corporation is the major player in the industry. Its dominance in the industry is characterized by their price authority and brand loyalty. COSTCO Wholesale Corporation has over the years conquered suppliers, even major manufacturers like Coca-Cola. COSTCO is able to attain goods from suppliers at a very low cost. The corporation dictates the price at which they buy their goods from the suppliers so as to fulfill their philosophy that is, to provide their members with extensively quality goods and the most militant prices.
Appendix 1 shows COSTCO Wholesale Corporation and BJ’s Wholesale Club past three-year analysis of the two companies’ revenues, net income, working capital and total assets. From the comparison, it is clear that COSTCO Wholesale Corporation business outlook is extremely bright as compared to that of BJ’s Wholesale club.
Over the course of the BJ’s Wholesale club has had greater revenues than COSTCO…
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