Team project Essay Example | Topics and Well Written Essays - 500 words

Team project - Essay Example Executive members receive a reward of up to two percent reward on Costco purchases per year.( Costco.com) Company vision as put forward by its founder, Jim Sinegal, is to â€Å"give the customer the best value we can†. His strategic vision is to give customers the best value and at the right price. He stressed the importance of treating people right and with respect. It works under the philosophy of â€Å"To keep costs down and pass savings to customers.† (costco.com) Costco sells automotive supplies, sporting goods, hardware, apparels, jewelry, toys, electronic goods and health aids. Away from the usual business activities, COSTO offers technical and non technical services based on different forte such as travel operations to financial investments. Other services of COSTCO includes COSTCO Photo Center, COSTCO Travel, Food Service and Shopping. In 2010, the company branched out to publishing, and has started to publish books and calendars. (Success Story. 2015) Costco does not raise prices because it believes it will be its downfall. In order to offer lower prices than competitors, it adopted a mark-up price of only 15 percent which is much lower than department stores. Department stores, according to Bond, Ronald, 2015,has a mark-up of 50 percent. Costco keeps its price down because they sell in bulk so that a cost of operation is down. Costco distribute its products through its international warehouse designed buildings located at various global sites. Costco has 672 warehouses in various regions, majority of which are in America. Few are located in Asia, such as there are 20 COSTCO warehouse stores in Japan, 11 in South Korea, 10 in Taiwan and 7 in Australia. It has also opened an internet website to keep abreast with competition, with free shipping and discounts to members. It limits distribution of its products by carrying