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Company Overview Of Costco: Craig Jelinek

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The first Costco opened in 1983. It was founded by James Sinegal and Jeffery Bortman. Around that same time Sol Price and his brother Robert started a company called Price Club that served small businesses in San Diego, California. In 1993, the two merged and since then have become the second largest wholesale retailer in the world. The current CEO is Craig Jelinek. Jelinek joined the Costco team in 1984 and has worked in various positions ultimately ending up as the CEO in 2010. Along with CFO, Richard A. Galanti, Jelinek is also backed by 12 Independent Directors and together they make all business decisions. Costco produces sales in the wholesale membership market and primarily competes with Sam’s Club, Wal-Mart, and Target. Costco focuses on a structure of low prices with high sales volume. Its members are primarily small businesses and families who buy in bulk. Since inception, Costco has produced goods from its in house manufacturer, Kirkland Signature. Costco doesn’t buy from lots of different brands rather relies on Kirkland Signiture to make equal or better products for a cheaper price. With all the sales you get at Costco, purchasing these goods at a cheaper cost actually comes at a price. Costco only sells to its members and membership fees range anywhere from US $55 to US $110. With over 70 Million Members it is has the most members on any wholesale corporation. …show more content…

It has had a steady growth in sales and just last year reached over $110 Billion. Costco also prides itself on treating its employees really well with good benefits and higher wages. Compared to Wal-Mart’s Sam’s Club, Costco’s main competitor, Costco has nearly twice as many members. It also offers its members a great 90 day warranty where a member can replace any item no questions asked. It is able to do this because of its great relationships with its

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