Good afternoon everyone. welcome to our presentation. We are Bravery and here are our group members…this is …this is… and I am Steven. The company we are traveling to analyse today is Costco. Before our debut. let’s first ticker a picture. First. we will present the overall background information of Costco. Second. the vision and mission of Costco will be analyzed. Third. we will speak about how did they come up with their dreams. Fourthly. the analysis about the strategic aims will be given. Last. we will place the challenge Costco is confronting and give our recommendations. Costco is a rank sweeping nine based in the U. S. . which is purpose for conveying the quality merchandises and service at the lowest possible monetary value to client. It was founded by James Sinegal & A ; Jeffrey Brotman in 1983 and now it is the largest rank warehouse nine concatenation in the United States. ranking 24th in the Fortune Top 500. Costco now has operated a concatenation of 622 warehouses around the universe. with 448 in American. 85 in 9 Canadian states. 32 in Mexico. 13 in Japan. 9 in Korea. 9 in Taiwan. 3 in the Australia. and 23 in the United Kingdom.
The Company besides operates Costco Online. the electronic commercialism web sites at 3 different states. and they besides own a store-brand Kirkland Signature since 1995. Kirkland Signature is known for quality merchandise and discounted monetary values. The concern theoretical account of Costco is called monetary value nine theoretical account. which allows its members to buy a limited choice of goods at comparatively low monetary values. Actually Costco does non transport multiple trade names or assortments points which are about the same. They merely provide about 4000 choice points. This consequence in a high volume of goods purchased from a individual seller. leting farther decreases in monetary value and selling costs. Costco charges rank fees and in return provides choice goods at low monetary value to members. In 2012 the company received $ 3. 8 billion dollar rank fee from more than 67 million members.
Apparently rank fee has become one of the most of import income beginnings for Costco. One thing to reference here is that Costco enjoys really high rank reclamation rate which is around 90 per centum in the U. S. . means a high member trueness and satisfaction. Costco has well-defined mark clients. Goods are normally targeted and marketed for little concern proprietors and big households. Now let’s expression at some figures about the warehouse industry and Costco. In 2012 the entire gross revenues of the industry reached $ 390 billion dollar with an addition of 137 % compared with that in 2001. And so we can see in 2012. Costco has $ 97 billion dollar gross revenues. $ 1. 8 billion dollar net income. and $ 3 billion dollar runing hard currency flow in manus. But what is the Costco’s place in the warehouse industry? We can see from this diagram that Costco contributed $ 97 billion dollar which is about one one-fourth of the whole industry gross revenues. doing the company the industry leader. BJ’s nine and Sam’s Club are two chief rivals in the warehouse industry. and with gross revenues in 2012 $ 11. 3 billion dollar and $ 53. 8 billion dollar severally. Then my groupmate sherry will present vision. mission and values of Costco in item.