A Case Study of Costco: from Business and Financial Perspective
DOI:
https://doi.org/10.54691/bcpbm.v20i.1032Keywords:
Costco, Swot, Pest, Porter ‘s Forces, Dupont analysis.Abstract
Costco is one of the four leading retailers in the world, offering customers a wide range of products at low prices and with high quality. As a low-cost leader, Costco still achieved amazing growth despite the impact of the epidemic. The purpose of this paper is to explore the business model and financial analysis of retailer Costco. This paper adopts the method of case study to discuss Costco's existing business model, strategic and competitive advantages and financial indicators. Provides Costco with a detailed analysis of its business activities relative to industry competitors in order to generate profits and maximize shareholder value. Data is collected from multiple secondary sources to ensure the authenticity of the information. In terms of business model, Costco is significantly affected by the macro environment, mainly due to COVID-19. Secondly, with the rapid economic development, online shopping is becoming more and more popular among young people, so the competition is becoming more and more fierce. Costco shows a flexible business model in its financial analysis. This article provides help for corporate managers, other retailers in the industry and researchers.
Downloads
References
Ali, M., Dianita, M., Hadian, N., Aryanti, M., & Wahyuningsih, N. (2020). Financial Performance Analysis Based on Profitability Ratio (Study at PT Astra International Tbk Period 2009-2018). International Journal of Psychosocial Rehabilitation, 24(02), 3474-3481.
Banomyong, R. (2005). Measuring the cash conversion cycle in an international supply chain. Annual Logistics Research Network (LRN), 29-34.
Beckers, J., Weekx, S., Beutels, P., & Verhetsel, A. (2021). COVID-19 and retail: The catalyst for e-commerce in Belgium?. Journal of Retailing and Consumer Services, 62, 102645.
Bogdan, S., Bareša, S., & Ivanović, S. (2012). Measuring liquidity on stock market: Impact on liquidity ratio. Tourism and hospitality management, 18(2), 183-193.
Calista, M., & Widjaja, I. (2019). Pengaruh current ratio, return on asset, return on equity, debt to equity ratio, total turnover asset, dan dividend policy terhadap harga saham. Jurnal Manajemen Bisnis Dan Kewirausahaan, 3(5), 13-18.
Chuang, P. Y. Strategic Differentiation Management: A Transnational Study of Costco.
D'Agostino, J. L. (2018). Amazon, E-Commerce, and the New Brand World (Doctoral dissertation, University of Oregon).
Fairfield, P. M., & Yohn, T. L. (2001). Using asset turnover and profit margin to forecast changes in profitability. Review of accounting Studies, 6(4), 371-385.
[9] Filer, R. K., & Golbe, D. L. (2003). Debt, operating margin, and investment in workplace safety. The Journal of Industrial Economics, 51(3), 359-381.
GURL, E. (2017). SWOT analysis: A theoretical review.
Ho, J. K. K. (2014). Formulation of a systemic PEST analysis for strategic analysis. European academic research, 2(5), 6478-6492.
Kesavan, S., Gaur, V., & Raman, A. (2010). Do inventory and gross margin data improve sales forecasts for US public retailers?. Management Science, 56(9), 1519-1533.
Menvielle, W., & Menvielle, L. (2015). Costco to the conquest of the French market: a strategic development on a competitive market.
Minahan, S. M., Huddleston, P., & Bianchi, C. (2012). Costco and the Aussie Shopper: a case study of the market entry of an international retailer. The International Review of Retail, Distribution and Consumer Research, 22(5), 507-527.
Purnomo, A. (2018). Influence of the ratio of profit margin, financial leverage ratio, current ratio, quick ratio against the conditions and financial distress. Indonesian Journal of Business, Accounting and Management, 1(1).
Sarisa, L. (2021). Business strategies in the retail supermarkets industry: A comparative case study analysis of Costco and Aldi.
Selling, T. I., & Stickney, C. P. (1989). The effects of business environment and strategy on a firm’s rate of return on assets. Financial Analysts Journal, 45(1), 43-52.
Soliman, M. T. (2008). The use of DuPont analysis by market participants. The accounting review, 83(3), 823-853.
Spencer-McDaniel Sr, J. A., & Anthony, P. (2012). Sustainable Solutions Paper: Several Strategic Analyses of Costco Wholesale Corporation.
Wulantika, N., Hariyanto, D., & Safitri, H. (2018). Pengaruh Current Ratio, Return on Equity dan Market to Book Ratio Terhadap Harga Saham. Jurnal Produktivitas: Jurnal Fakultas Ekonomi Universitas Muhammadiyah Pontianak, 5(1).
Wu, K. J., Tseng, M. L., & Chiu, A. S. (2012). Using the Analytical Network Process in Porter's Five Forces Analysis–Case Study in Philippines. Procedia-Social and Behavioral Sciences, 57, 1-9.
Downloads
Published
Issue
Section
How to Cite
