Costco Wholesale Corporation Financial Statement Analysis (A)

This strategy works well for Costco, given its customers…. Views Total views. See our User Agreement and Privacy Policy. Secondly the supply of new products is not regular thus leading to high and low swings in the sales number over period of time. Strong Free Cash Flow — Costco Wholesale Corporation has strong free cash flows that provide resources in the hand of the company to expand into new projects.

Occasionally, whether it is a torn bag of merchandise or a delivery truck leaking fuel, there will be a spill. Strategic Management, 18th edition, Thompson and Stickland. Any personal information you provide will be used for purposes only as described in our Privacy Statement. This lack of choice can give a new competitor a foothold in the market. Costco Wholesalers Corp. Share this link with a friend: SPS Commerce has achieved 48 consecutive quarters of revenue growth and is headquartered in Minneapolis.

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Essay Case Study 1: Costco Wholesale in 2012

Add Upload document Create flashcards. Thus, vendor compliance can be challenging. With the introduction of 20th century operational management strategies such as Just in Time JIT and Lean Manufacturing, companies had to alter its operational efficiency and the way it conducted its business in order to grow and stay competitive. As one of the leading firms in its industry, Costco Wholesale Corporation has numerous strengths that enable it to thrive in the market place.

Supreme Court. All notices, renewals and invoices are sent directly to 3E and they remit payment through a trust account on our behalf. Costco has positively increased the liquidity of its assets and increased its inventory turnover over this five year period. The decision has been characterized as a loss for consumers in the sense that manufacturers will better be able to control the prices of their goods when the grey market cannot serve as competition.

The idea behind a wholesale club was to maximize profits by minimizing operational costs …show more content… Overall, Costco has managed its finances quite well and does not seem to be financial difficulties judged by the income statement and balance sheet. Although the SWOT analysis is widely used as a strategic planning tool, the analysis does have its share of limitations. Costco asserted that the first-sale doctrine precluded any infringement claims against them.

Costco Case Analysis

When a vendor comes to Costco after working with SPS, they are truly ready-to-go and we can both start to receive the benefits from EDI right away. They are willing to work with us and do the right thing. It represent a great opportunity for Costco Wholesale Corporation to drive home its advantage in new technology and gain market share in the new product category. Circles are drawn roughly proportional to the sizes of the club chains based on revenue