Costco Mission Statement | Vision | Core values ​​| A detailed analysis

0

Company: Costco
CEO: Craig Jelinek
Year of foundation:
1983
The head office:
Issaquah, Washington, USA
Employees (2021):
298,000 (worldwide)
Type:
Audience
Stock symbol:
COST
Turnover (2021):
$195.929 billion
Profit | Net revenue (2021):
$5.007 billion

Products: Grocery, candy, electronics, automotive supplies, sporting goods, watches, jewelry, clothing, books, housewares, furniture, health and beauty, office supplies and equipment.
Competitors: Sam’s Club | Wholesale BJ Club | Amazon | Target | Kroger | walmart

Did you know? Each Costco store contains only about 4,000 Stock Keeping Units (SKUs), compared to more than 30,000 SKUs in other supermarkets.

Since opening in 1983, Costco has become a household name in the United States for everything from groceries to electronics, furniture, automotive supplies, clothing, health and beauty products, and more. . Costco has a global presence with 831 storesincluding 574 stores in the United States, 105 in Canada, 29 in the United Kingdom, 40 in Mexico, 31 in Japan, 4 in Spain, 13 in Australia, 1 in Iceland and two stores each in China and France.

Costco annual revenue reached 195.929 billion dollars with a profit of 5 billion dollars.

The in-depth analysis of Costco’s mission statement, vision statement, core values, and sustainability goals in this review will help you understand why this wholesale giant is so successful.

Costco Mission Statement

To continually provide our members with quality goods and services at the lowest possible prices.

Analysis of Costco’s mission statement

Although Costco’s mission statement is concise and simple, here’s a full breakdown of the statement.

  • A customer-centric mission

Costco’s primary goal is to provide its customers with great products at unbeatable prices. Almost each Costco store has over 4,000 SKUs at any given time. The customer-focused sales strategy has resulted in a 18% increase in Costco revenue to $195 billion. Costco’s mission is to provide 100% customer satisfaction; therefore, the company offers a full refund to customers if they are not satisfied with the product.

Top-notch customer service ensures a hassle-free shopping experience for customers. No wonder Costco enjoys the position of industry influencer when it comes to setting standards for the best prices for high-quality products.

  • Low prices compromising quality

Costco thrives on offering products at a super bargain price but ensures that all the products in its warehouse are of good quality. Regardless, the wholesale giant has captured the hearts of millions of Americans by providing value for money for nearly 40 years.

The overall product prices are lucrative enough to keep customers coming through the doors. However, Costco goes beyond offering more exclusive offers to customers who sign up for its membership.

Costco Vision Statement

“A place where efficient buying and operating practices allow members to access unparalleled savings.”

Costco’s vision is to provide customers with a fast, hassle-free shopping experience while continually improving operations for rapid availability of products and services. Costco is rigorously at work to provide a wide selection of products in various categories to cater to customers from all walks of life.

Costco Vision Statement Analysis

Here is a detailed analysis of Costco’s vision statement.

The vision of America’s favorite wholesale chain is to provide a unique shopping experience for its customers. It aims to provide everything a customer might want to buy under one roof. This will allow customers to walk in with the shopping list and leave with whatever they had in mind.

It’s one thing to offer such a wide selection of products, but it’s for doing so at an affordable price that Costco wins big. The vision is to ensure that the price customers pay at Costco stores is unmatched, which draws customers to Costco on its competitors.

Speaking of convenience and savings, Costco’s online stores are a clear example. It’s proof of Costco’s vision for the future, which offers a wide range of merchandise at the best bargain prices, while keeping sustainability in mind.

Customers can now afford to shop from the comfort of their homes, and Costco will deliver them as soon as possible. This provides convenience and saves customers time and money, especially when the economy is experiencing a downturn due to the pandemic.

Costco Core Values

Costco operates on four core values, which are analyzed below.

1. Obey the law

Costco is a strong supporter of all employment and industry laws. The company has a strong track record of managing its operations while maintaining compliance with retail industry and employment sector standards.

2. Take care of members

Even though Costco is known for taking care of all of its customers by offering great products at affordable prices, the chain goes the extra mile by taking care of its members. Customers who choose to join the membership program tend to receive additional discounts and exclusive access offers.

3. Take care of employees

Costco is one of the most employee-centric companies in the United States. The company never hesitates to recognize and reward the outstanding performance of its employees. Therefore, Costco first extended its $2 an hour premium pay. In addition, the company has continuously raised its increased hourly wage $1 for all warehouse employees to encourage them.

4. Respect for Suppliers

It would be impossible to offer such a wide selection of products in more than 800 stores across the country without flawless logistics and supply chain operations. Therefore, Costco values ​​and respects its suppliers.

Like the company said,

Respect our suppliers​​ their places of business. Honor all commitments. Protect all vendor property assigned to Costco as our own. ”

Not only that, but Costco is also committed to supporting supplier diversity. Therefore, Costco Wholesale also works with several qualified women and minority vendors operating in the community.

References and more information

  1. Costco Wholesale, What is Costco’s Mission Statement and Code of Ethics, Costco
  2. Costco Wholesale (2022, May 6), Costco Wholesale Corporation Reports Third Quarter and Year-To-Date Operating Results for Fiscal 2022, Costco
  3. Costco Wholesale (2022, March 23), Costco Wholesale Corporation Reports Second Quarter and Year-To-Date Operating Results for Fiscal 2022 and February Sales Results, Costco
  4. Costco Wholesale, (2021, August 29), 2021 Annual Report, Costco
  5. Costco Wholesale Company Profile, Costco
  6. Costco Wholesale, Supplier Diversity, Costco
  7. Costco Wholesale, Sustainability Ethics, Costco
  8. Image selected by Grant Beirute

Tell us what you think? Did you find this article interesting? Share your thoughts and experiences in the comments section below.


Source link

Share.

Comments are closed.