Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
36Activity
0 of .
Results for:
No results containing your search query
P. 1
Costco Wholesale Corporation Paper

Costco Wholesale Corporation Paper

Ratings: (0)|Views: 3,189|Likes:
Published by dian ratnasari

More info:

Published by: dian ratnasari on Aug 22, 2009
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as DOC, PDF, TXT or read online from Scribd
See more
See less

12/01/2014

pdf

text

original

 
COSTCO WHOLESALE CORPORATION:MISSION, BUSINESS MODEL, AND STRATEGY
Company Background
Costco Wholesale Corporation is a company that moves in retailing industry whichwas founded by Jim Sinegal and Jeff Brotman in 1983. Costco used the concept that firstlyintroduced by Sol Price which is membership warehouse, where Costco gives a lower price toits member. The first Costco store began operations in Seattle. And in 2006, Costco’s salestotaled almost $59 billion at 496 stores in 37 states making them the fourth largest retailer inthe USA and the seventh largest in the world with annual sales per store average $128million. About 26 million households and 5.2 million businesses had membership cardsentitling them to shop at Costco with cut prices
Case-Theoretical Framework Analysis
A company needs to implement the theoretical framework about the Strategy Making,Strategy Making Process which has 5 phases systematically in order to improve its market position and future prospects:
 Developing a strategic vision
The first phase is to develop a strategic vision for the company. Costco’s philosophywas to keep customers coming to shop by wowing them with low prices. Based on thatstatement, we can understand that Costco wants to be the one that offers the lowest price withgreat values. Quote from Sinegal:
We’re very good merchants, and we offer value. The traditional retailer will say: “I’m selling this for $10. I wonder whether we can get $10.50 or $11.” We say:”We selling this for 
1
 
$9. How do we get it down to $8?” We understand that our members don’t come and shopwith us because of the window displays or the Santa Claus or the piano player. They comeand shop with us because we offer great values.”
Sometimes a company doesn’t state its strategic vision clearly, like Costco does. But ithas company values or philosophy that is implemented on its performance.
Setting objectives
Costco wants to provide the lowest-price to the customers and keep the customer coming back to shop:
Crafting a strategy to achieve the objectives and vision
Costco has three strategies:1.Pricing, provide the lowest price than another retail store.2.Product selection, Costco didn’t want stocked about the items more than 4000 items tomake low inventory, eliminating cost, holding and cost handling.3.Treasure-hunt merchandising, Costco provide limited items that will not available for thenext time in the warehouse. According to the Jim Sinegal Costco try to get that sense of urgency in their customers.
4.
Marketing dan Advertising 
.
 
Karena Costco sudah terkenal mampu memyediakan barangdengan harga yang murah dan ketersesiaan barang yang selalu berubah maka Costco tidak  perlu melakukan usaha periklanan maupun promosi penjualan yang gencar. Cara
2
 
 pemasaran dan promosi yang dilakukan Costco terbatas pada pegiriman surat langsungkepada anggota yang sudah terdaftar, pengiriman kepada calon pelanggan yang dianggap potensial untuk menjadi anggota dan pengenalan pembukaan toko baru. Untu pembukaan toko baru biasanya tim marketing dari Costco menghubungi calon pelangganyang potensial yang biasa mereka sebut dengan Potential Gold Star dengan caramengirimkan surat kepada calon pelanggan berdasarkan data dari asosiasi tenaga kerjaatau dari perusahaan yang mempunyai banyak karyawan. Setelah keanggotaan Costcosudah terbentuk didaerah tersebut biasanya para anggota tersebut akan memberitahukankepada sekitar mengenai kelebihan berbelanja di Costco (word to mouth). Dengan caratersebut Costco beranggapan bahwa mereka mampu menghemat biaya promosidibandingkan dengan pesaing-pesaingnya.
5.
Growth Strategy
.
 
Pada beberapa tahun terakhir Cost membuka toko baru antara 20-25toko baru setiap tahunnya, kebanyakan lokasinya ada di Amerika Serikat akan tetapimereka juga memperhatikan perkembangan tokonya di wilayah negara lain, hal ini dapatdilihat dari perkembangan toko Costco yang memiliki 102 toko berada di luar AmerikaSerikat, Costso juga membuka 2 toko khusus yang menyediakan barang perlengkapanrumah tangga dengan teknologi tinggi, dari data diketahui bahwa perlengkapan rumahtangga dengan teknologi tinggi merupakan salah satu dari tiga terbesar penjualan Costco.Costco juga berusaha menambah item barang dengan merk mereka sendiri dari semulasekitar 400 item menjadi 600 item dalam lima tahun yang akan datang.
6.
Web Site Sales
. Costco juga mengembang cara berbelanja melalu internet, merekamempunyai dua website untuk untuk melayani pelanggan yang mungkin tidak mampumereka layani melalui toko yang mereka miliki seperti,
digital photo proc
essing, penebusan resep ataupun layanan lainnya.
Web site
mereka terbukti mengalami perkembangan yang cukup baik yaitu sekitar 10% meskipun iklim industry pelayanmelalui internet mengalami penurunan.
 Implementing and executing the strategy
The implementing and executing the strategy in Costco related to the philosophy, value andcode ethics:1.Obey the law: comply with all laws and other legal requirements. Respect of all public officials and their position. Comply with safety and security standard for all product sold, etc.
3

Activity (36)

You've already reviewed this. Edit your review.
elmianafsah liked this
1 thousand reads
1 hundred reads
amjones58 liked this
James Frener liked this
Dhani D. Ace liked this
Alla Vasilyeva liked this
Mapple Leaf liked this
Mapple Leaf liked this

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->