Costco Annual Report

1227 WordsMar 8, 20145 Pages
ANNUAL REPORT PROJECT FOR ACCOUNTING 310 GROUP MEMBERS: NOVEMBER 20, 2012 SECTION 1: Costco is a wholesale corporation, which began operations in 1983 in Washington, US. By 1995 Costco had more than 200 warehouses in Washington. In 1999, Costco established its first warehouse in Japan. Costco now has warehouses all over the world, including Canada, Mexico, Australia, and United Kingdom. Costco operates an international chain of membership warehouses, which are mainly under its own “Costco Wholesale” brand name. Costco’s main products includes candy, snack foods, tobacco, alcoholic and non-alcoholic beverages, cleaning and institutional supplies, appliances, electronics, health and beauty aids, hardware, office supplies, garden and patio supplies, sporting goods, toys, furniture, automotive supplies, dry and institutionally packaged foods, apparel, domestics, jewelry, house wares, home furnishings, cameras, small appliances, fresh food, meat, bakery, deli, produce, pet supplies, and pharmaceutical products. Costco’s main services are fuel services, food services, optical services, one-hour photo services, hearing aid centers, travel services, and membership services. Without a doubt, Costco Wholesale’s strategy and competitive advantage over its competitors was, still is, and will always be the great and high quality of products and services they offer to its customers at the lowest possible price. Although the financial crisis in the United States and over the world, Costco still offers lower prices and good quality products, which causes its members to keep on renewing their membership. Costco’s strategy to create an executive membership by charging a higher price than the regular membership created an increase in its revenues due to the great benefits this membership offers. Members were willing to pay for an upgrade from their regular membership to

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