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Essay / Research Paper Abstract
This 10 page paper examines the performance of Costco Wholesale, looking at the background of the company, the general performance and performs a ratio analysis for three to the financial year ending in 2008. The bibliography cites 20 sources.
Page Count:
10 pages (~225 words per page)
File: TS14_TEcostco.rtf
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Unformatted sample text from the term paper:
is also the fifth largest retailer in the US (Costco, 2009). The firm sells a wide range of goods including but not limited to, snack foods, household goods, garden equipment,
travel services, media content and gas stations (Costco, 2009). The target market of the chain is small to medium sized businesses where goods can be purchases to be resold, as
well as for personal use, with this latter part of the firm increasing it its importance to the product mix in recent years (Costco, 2008, 2009) 2. Background The firm,
at September 2009 had a total of 560 warehouses; the majority are in the United States, with 407 in this location, as well as 7 in Korea, 21 in the
UK, 76 in Canada, 6 in Taiwan and 9 in Japan, and 1 in Australia. In addition to these there are also Costco outliets in Mexico which are operated under
a joint venture agreement, with Costco owning a 50% share of 32 outlets (Costco, 2009; Yahoo Finance, 2009). The first warehouse store was opened in 1983 by Jeffery Brotham
and James Sinegal (Jim) at which point they gained what is now known as a first mover advantage (Porter, 1980; 1985, Mintzberg et al, 2008). In 1993 there was a
merger with Price Club, they were similar operations in terms of size and the way that they were doing business with the warehouse concept, which had a history that started
in 1976 (Costco, 2009). The resulting entity was called Price Costco, and has a turnover of $16 billion a year with a total of 206 locations. The initial agreement saw
the executives from both firms running the merged company, but only a year later, Sol and Robert Price, the founders of Price Club left and founded Price Enterprises, leaving the
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