Costco Wholesale Corporation Corporate Strategy

Costco Wholesale Corporation, which operates as a membership retailer, which specializes in selling quality products at low prices was founded in 1983 by James Senegal and Jeffery Brotman, with both having a background in retailing and established the first warehouse in Seattle, Washington. In 1993, there was a merge between Costco and Price club forming Price Costco causing a double in size in comparison with the parent company, and in 2007 the corporation became the seventh largest global retailer. By the corporation focusing on competitive pricing, a sizable selection of products, and treasure hunt merchandising, they developed a franchise that stood out from other competitors as a remarkable retailer. They have excelled in keeping their …show more content…
They have unique way or mechanism that helps them keep the price lower than that of competitors and they can still afford to pay higher salaries to their employees than their major competitors mainly Wal-Mart. Their membership base is growing and they are able to retain their customers. Virtually, they do everything to retain their customers. Most importantly they have very incredible return policies in hand to attract and retain customers. Furthermore, they try to find the best value pack for almost every product they sell in their stores. They generally engage in bigger packages because they believe that bigger package provides better value and cost savings to their …show more content…
Within the company’s five principles, employees are seen as a priority in order to be successful. Costco offers its employees very competitive benefits and salaries, allowing employees to have satisfaction in their work while working. The company focuses on providing strong benefits, which allow its employees to feel as though they can work at Costco until they retire. Though competitive packages are offered, the company prefers to develop their employees within the company. When doing this, they have turned down outsiders who may be able to bring in new innovations which can propel the company further ahead of its competitors. Jim Sinegal mentions that if a Harvard MBA graduate was looking for a job, he would tell him that he would begin at the bottom of the company. This strategy deters the company from accepting outside viewpoints, which could bring greater profits. Sinegal instead wants to install only his values without any outside opinions, even if they may propel growth within the