The goal of this memo is to analyze Costco’s overall performance when compared with Sam’s Club and BJ’s.

Costco Wholesale Corporation is actually a wholesale club that requires customers to purchase annual memberships in order to look at their stores. Costco’s main competitors were Sam’s Club and BJ’s Wholesale. Costco purchased Price Club in 1993 which enabled it to live inside the competitive wholesale industry. Additionally, it adopted a strategy that was different in comparison with its major competitor, Sam’s Club This enabled costco corporate email to be the greatest wholesale club in the business in 2001.

I. Costco’s Performance in Relation to BJ’s

Once I compared Costco’s total revenues with BJ’s total revenues in Exhibit 5 of FIN 197 Seminar in Finance case book, I found that Costco’s total revenue were increasing in an increasing rate with the exception of year 2000 to 2001. BJ’s on the other hand, had growing revenues until 1999 when their revenues then begun to grow at a declining rate.

Costco includes a higher membership fee and much more and this enabled Costco’s total revenue to be higher than BJ’s. This membership fee is essential as it is the key reason for the company’s bottom line since sales excluding membership fees barely covers operating expenses. Costco also has more warehouses and a lot higher sales per store. Costco has warehouses in many international locations while BJ’s only have warehouses in the united states. However, Costco includes a lower operating and gross margin which demonstrates that BJ’s has more efficient operations and higher product prices than Costco. Costco’s inventory turnover ratio is outstanding since it is larger than BJ’s. This clearly shows that Costco posseses an excellent operating efficiency.

II. Costco’s Performance in Relation to Sam’s Club

Sam’s Club, on the other hand, has more members and warehouses as compared to costco customer service number which makes it Costco’s largest competitor. However, Costco had larger total revenues, sales per store and operating income due to the strategy. This can be because Costco is much more internationally dispersed compared to Sam’s Club since it has more warehouses in international locations. I am just struggling to compare Costco’s financial statement performance with Sam’s Club because Sam’s Club data is joined with Walmart.

III. Costco’s core strength and strategy

Costco pursues the strategy of focusing on lowering the unit cost of goods and purchasing few Stock Keeping Units (SKUs) from its vendors which enable production savings.

Costco’s core strength was created to provide it with higher total revenues and also to create value to its customers. Their core strength can be divided into two:

• Targeting a wealthier number of small businesses proprietors and middle class shoppers which is different from Sam’s Club.

• Refusing to mark up products more than 14 percent on the distributor’s price

Costco’s strategy is really efficient in providing it having a competitive edge over its competitors BJ’s and Sam’s Club. This is definitely a long-term value enhancing strategy because is always to create value with their customers. They vpaisq definitely obtain many loyal and satisfied customers who do not mind paying a greater membership fee to sign up for Costco. Costco is yet another very ethical company because they are not implementing a method which serves to lessen their costs and cheat customers of the funds in an indirect way.

Costco Corporate Office Contacts – Why So Much Attention..

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