Business Case Studies, Growth Strategies Case Study, Costco Warehousing Corporation

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Case Title:

Costco Warehousing Corporation: Strategies for Growth

Publication Year : 2004

Authors: Bindu Kannan

Industry: Retailing

Region:USA

Case Code: GRS0027

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
In 2003, Costco was the largest wholesale club operator in the US, ahead of Sam's Club (Wal-Mart) and BJ's. Costco had earned a distinct identity for offering a wide variety of products at deep discount prices. The company was able to undercut its competition in terms of price, by setting up warehouse style stores without any deluxe fixtures, sourcing products directly from the manufacturers, and selling in bulk.

Pedagogical Objectives:

  • To discuss the growth of Costco, and how various strategies were employed by the company to create a competitive advantage in the market
  • To discuss the nature of competition that Costco faces and what innovative ideas it came up with to counter them
  • To discuss the factors that needs to be considered when expanding into international markets.

Keywords : Wholesale club operation in the US; Growth Strategies Case Study; Supermarkets in the US; Discount stores in the US; Items sold in Costco; Warehouse club industry in the US; Ancillary industries of warehouse clubs in the US; The growth of Costco; Membership at Costco; Operating expenses at Costco; Merchandising strategy at Costco; Growth strategy of Costco; Competitors of Costco; Sam's Clubs; Wal-Mart
Contents : 
MajorCategory of Items Sold by Costco
THE USWAREHOUSE CLUB INDUSTRY
Wholesale Club Industry Statistics
Ancillary Businesses ofWholesale Clubs
COSTCO BACKGROUND NOTE
Types of Membership Offered at Costco
MERCHANDISING
GROWTH STRATEGY
Costco’s Ancillary Business

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