Costco is a member of the discount and variety store industry which includes giants like Wal-Mart and Target with Wal-Mart being the industry leader with a market capitalization of $197.55 billion as compared to Costco which ranks third and has a market capitalization of only $25.43 billion. The other prominent companies in the industry include Target Corporation, Dollar Tree Inc., and Big Lots Inc., Family Dollar Stores Inc., Fred’s Inc., Price Smart Inc. and 99 Cents only stores (Yahoo Finance).
The mission statement of Costco according to its annual report is “To continually provide our members with quality goods and services at the lowest possible prices” (Costco Wholesale). The management of the company has followed this mission since the time of its inception which enabled the company to grow significantly in a very short period of time and as described previously it grew rapidly in the first six years of its operation to reach an annual sales level of $16 billion.
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