COSTCO WHOLESALE IN 2012 : MISSION, BUSINESS MODEL,

AND STRATEGY

Ferdi Bima

Ika Putri Murwadi

Untari Febrian R

Retno Wulandari

Danar Setyo

Arie Wismoyo

Dini Nur Septiana

Business Overview

Problem Statement

External Analysis

Internal Analysis

Solution

MISSION STATEMENT : To continually provide our members with quality goods and services at the lowest possible price

Code of Ethics1. Obey the law.2. Take care of our members.3. Take care of our employees.4. Respect our suppliers.

Business Overview

Problem Statement

External Analysis

Internal Analysis

Solution

598 Warehouses di USA, Korea, Canada, Puerto

Rico, UK, Taiwan , Japan, Australia &

Mexico

Costco’s 2011 total revenues :

$88.9 billion.

Annual sales / store : $146

million (85% > sams club)

Membership : 25 million

households & 6.4 million business

Rapid Inventory Turnover

Business Overview

Problem Statement

External Analysis

Internal Analysis

Solution

Business Model

Low pricesLimited selection of quality merchandise

+ Wide range of merchandise categories

Rapid inventory turnover

Volume purchasingEfficient distributionReduced handling of merchandise

+No-frills, self-service warehouseOperating efficiencies

Rapid inventory turnover+Operating efficiencies

Profit at a very low gross margin + Membership Fees

Bagaimana cara Costco mempertahankan diri sebagai market Leader dalam industri

wholesale?

Business Overview

Problem Statement

External Analysis

Internal Analysis

Solution

Business Overview

Problem Statement

External Analysis

Internal Analysis

Solution

PORTER’s 5 FORCES

Business Overview

Problem Statement

External Analysis

Internal Analysis

Solution

DRIVING FORCES

INTERNET ENVIRONMENT COST

Business Overview

Problem Statement

External Analysis

Internal Analysis

Solution

Comparative Market

Positions

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Costco Strategic Group Map

number of warehouselittle many

little

wide

ma

rke

tsh

are

Business Overview

Problem Statement

External Analysis

Internal Analysis

Solution

KEY SUCCESS FACTORS

• Berada di daerah yang dekat perumahan

• Kemampuan untuk mengendalikan rantai suplai yang kuat

• Memberikan produk lokal

• Menemukan pasar baru

• Membuat komunitas pelanggan

• Tetap berpegang pada visi perusahaan

• Mudah mengakses ke global e-commerce

• Memberikan pengalaman berbelanja yang baik pada konsumen

Business Overview

Problem Statement

External Analysis

Internal Analysis

Solution

COMPETITIVE STRATEGY

Best cost provider

Business Overview

Problem Statement

External Analysis

Internal Analysis

Solution

FIVE GENERIC COMPETITIVE

ANALYSIS

Costco menargetkan pemilik usaha kecil – menengah yang memiliki pendapatan pribadi pada kisaran $100.000/tahun atau lebih

Rata – rata pelanggan Costco adalah perempuan dalam rumah tangga besar dengan pendapatan sebesar $50.000/tahun atau lebih

Kebanyakan customer adalah dari kelompok etnis Hispanik dan AsiaCustomer memiliki jumlah kunjungan 8-11 kali per tahun

Customer (WHO)

Business Overview

Problem Statement

External Analysis

Internal Analysis

Solution

FIVE GENERIC COMPETITIVE

ANALYSIS

Quality Product Harga yang relatif rendahConvenience / Kenyamanan Reliability

Customer needs (WHAT)

Business Overview

Problem Statement

External Analysis

Internal Analysis

Solution

FIVE GENERIC COMPETITIVE

ANALYSIS

Gold Star Member = $ 50Business Member = $ 50Executive Member = $ 100Membership fees allow Costco

to maintain low margins

Membership (HOW)

Business Overview

Problem Statement

External Analysis

Internal Analysis

Solution

FIVE GENERIC COMPETITIVE

ANALYSIS

Gold Star Member = $ 50Business Member = $ 50Executive Member = $ 100Membership fees allow Costco

to maintain low margins

Membership (HOW)

Business Overview

Problem Statement

External Analysis

Internal Analysis

Solution

FIVE GENERIC COMPETITIVE

ANALYSIS

Costco berfokus pada penjualan produk dengan harga rendah, dan pada volume yang besar

Barang biasanya dikemas massal (Dipasarkan terutama untuk keluarga besar dan bisnis)

Tidak membawa beberapa merek atau varietas (House Brand untuk menjual, di bawah label Signature Kirkland)

Hasil volume penjualan yang tinggi dari vendor tunggal, memungkinkan pengurangan lebih lanjut dalam harga, serta mengurangi biaya pemasaran

Products (HOW)

Business Overview

Problem Statement

External Analysis

Internal Analysis

Solution

FIVE GENERIC COMPETITIVE

ANALYSIS

Generic Competitive Strategy

• Best-Cost Provider• Top-quality merchandise

• Lowest price

• Treasure-hunt items

• Kirkland Signature

• Top-quality in-house brand

Business Overview

Problem Statement

External Analysis

Internal Analysis

Solution

SWOT MATRIX

Strengths :

Low Prices

Strong Brand

Operating Efficiency

Strong membership

Weaknesses :

Burden of high wages paid to worker

Low price margins

E-commerce activities

Small Marketing budget compared to discount retailers and super markets

Opportunities :

Appeal to conscientious shopper

Expand into foreign stable markets

Mergers & Acquisitions

Massive supplier pool

Threats :

Aggressive price competition by rivals

Political complications in foreign markets

Cannibalization

Business Overview

Problem Statement

External Analysis

Internal Analysis

Solution

SWOT MATRIX

• Ekspansi ke luar negeriS-O

Strategies

• Peningkatan E-CommerceeW-O

Strategies

• Menawarkan produk yang berbeda di website dan di warehouse untuk menghindari kanibalisasi

S-T Strategies

• Penguatan Kirkland Signature brand

• Intensifikasi marketing, menambah sedikit biayamarketing

W-T Strategies

Business Overview

Problem Statement

External Analysis

Internal Analysis

Solution

CO-Branding Kirkland Signature

Penambahan Peripheral Services

Penambahan Self Check Out Counters

Bekerjasama dengan Samsung

Groceries yang lebih murah

Bekerjasama dengan google express

pertanyaan• Solution, groceries lebih murah ? Kalau bagian com adv kenapa hrs

dikurangi ?

• Threath ada kanibalisasi. Kontrolnya bagaimana ?

• Economic of scale, apakah masuk strategi berhubungan dengan low price

• Apakah bisa meningkatkan presentase jumlah kirkland.

• Inventory Costco high atau low ? Kalau dibandingkan dengan low price

• Saila : the lowest possible prices, bagaimana berikan harga rendah selain pengelolaan inventory

• Novan : penjualan Samsung apakah tidak berlawanan dg treasure hunt buyer ?

• Nurvandi : didalam industri ini adakah sistem integrated procurement ?

• Andri : bagaimana jaga harga rendah kalau bersaing dg amazon ?