The annual revenue for the wholesale retail industry is $462 billion, with projected growth of 2.1% from 2014-2019. Costco and Wal-Mart account for over 82% of the market share. Key external drivers that impact industry performance include disposable income, corporate profits, time spent on leisure activities, and the price of crude oil. Costco has 451 warehouses serving 67 million members, with an inventory of around 3,600 items per store. Strengths include pricing authority, gasoline sales, and brand loyalty, while weaknesses include geographic dependence on the US and Canada and an older customer base. Opportunities exist in attracting younger customers and expanding e-commerce, while threats include competition from retailers like Wal-Mart
Costco: Banking on Consistency and Efficiency James Rothaar
Costco just may be the most efficiently ran buyer's club retail operation in the world. The business has both a unique plan and a corporate culture that enables it continue growing year after year both nationally and globally.
Costco: Banking on Consistency and Efficiency James Rothaar
Costco just may be the most efficiently ran buyer's club retail operation in the world. The business has both a unique plan and a corporate culture that enables it continue growing year after year both nationally and globally.
This was a group project which was created by myself, Alicia Lo, Lei Lei, Kevin Bernaga, Joanna Nguyen, and BInbin Li in which we created an in-depth case analysis report on the Costco Wholesale company. In this project, we effectively analyzed Costco’s sources of competitive advantage, core competencies, and strategic issues and conducted an internal/external environment analysis, PESTLE analysis, and strategic analysis in order to create strategic recommendations for Costco to follow. We further reinforced strategic recommendations using statistical graphs regarding Costco’s revenues, expenditures, etc.
This project was conducted during our BUS-690 (Business Policy and Strategic Management) course at San Francisco State University.
This was a group project which was created by myself, Alicia Lo, Lei Lei, Kevin Bernaga, Joanna Nguyen, and BInbin Li in which we created an in-depth case analysis report on the Costco Wholesale company. In this project, we effectively analyzed Costco’s sources of competitive advantage, core competencies, and strategic issues and conducted an internal/external environment analysis, PESTLE analysis, and strategic analysis in order to create strategic recommendations for Costco to follow. We further reinforced strategic recommendations using statistical graphs regarding Costco’s revenues, expenditures, etc.
This project was conducted during our BUS-690 (Business Policy and Strategic Management) course at San Francisco State University.
This webinar will cover the latest financial trends of food manufacturers, including historical trends, industry outlook for the future, and mergers and acquisition activity. It will also address some important tips for pre-sale due diligence and the specific items you should be considering prior to a merger, sale, or acquisition.
The Transformer Oil market crossed US$ 2 billion mark in 2022 and is expected to hit US$ 3.5 billion by 2030, recording a CAGR of 7.0% during the forecast period.
Transformer Oil Market by Type (Mineral Oil, Silicone Oil, Bio-based Oil), Application (Transmission and Distribution, Power Generation, Railways and Metros, and Others): Global Market Size Estimates and Forecast (2022-2030)
Cheese Market by Product (Mozzarella, Cheddar, Parmesan, Blue Cheese, and Others), Form (Slices, Shredded, Blocks, Spreads, and Others), Distribution Channel (Supermarkets and Hypermarkets, Convenience Stores, Online Retail, Others): Global Market Size Estimates and Forecast (2022-2030)
2. Industry Overview
• Annual Revenue 462 Billion
• 2009-14 Growth: 3.5%
• 2014-19 Growth Projection:
2.1%
• Costco/Wal-Mart: account
for over 82% of market
share
3. Industry Performance
• Key External Drivers
• Per Capita Disposable
Income
• Corporate Profit
• Time spent on Leisure &
Sports
• Product Offerings
• Kirkland Brand
4. Industry Performance, Cont’d
Key External Drivers
(Cont’d)
• Competition
• World Price of Crude Oil
• Costco Gas
• Time spent on Leisure & Sports
5. Costco-Company Overview
• 451 Warehouses
• 67 Million Members
• Inventory: 3,600 items/store
• 2014: 79 Billion in Revenue (6.9% Increase)
6. Strengths
• Pricing Authority
• Consistently provide
competitive price
• Gasoline
• Lower cost, brings
members to warehouses
• Brand Loyalty
• High quality products
• Market share growth
• Increased customer base
7. Weaknesses
• Geographic Dependence
• U.S. & Canada: 87% of total
Sales in 2014
• California: 32% of U.S. sales
• Older Customer Base
• Baby Boomers
• Growing older, spending less
10. Company Analysis
• Business Strategy
• Lower In-Store Inventory
• Focus on Higher End
Goods
• Slow Expansion
• Historical Value
• Stock Price (as of 4/24/15:
$148.12
• 1 year growth: 32.52%
• 5 year growth: 146.04%
