THE COSTCO VALUE EQUATION
QUALITY GOODS & SERVICES
+
EFFICIENT BUYING & OPERATIONS
+
MEMBERSHIP MODEL
↓
LOWEST POSSIBLE PRICES
Member Value
→
Member Trust
→
Long-Term Membership
Relationship
Research-based visual interpretation of Costco's operating model.
THE POWER OF FOCUS
Limited Assortment:
Fewer carefully selected products
→
greater purchasing leverage
→
operational simplicity
→
better value.
High Volume:
Large purchasing volumes
→
stronger
supplier economics
→
lower merchandise costs.
Low Operating Complexity:
Efficient warehouses
→
streamlined operations
→
lower costs.
THE MEMBER IS THE CENTER
[ MEMBER ]
QUALITY • VALUE • TRUST • CONVENIENCE
Membership Renewal & Loyalty
Costco's business model depends on continuously earning the
trust and loyalty of members by delivering compelling value.
COSTCO CODE OF ETHICS
1
→
2
→
3
→
4 leads to 5
KIRKLAND SIGNATURE
Quality & Value
Developing products intended to meet or exceed leading-brand
quality while maintaining Costco’s value proposition.
THE COSTCO DIFFERENCE
Membership
→
Focus
→
Scale
→
Value
→
Trust
SUSTAINABILITY
Responsible, Resilient & Relevant:
Doing good business means
remaining aligned with Costco's mission while considering
impacts on people and the environment.
HOW THE VISION BECOMES REAL
MEMBERSHIP
↓
DISCIPLINED ASSORTMENT
↓
HIGH-VOLUME BUYING
↓
LOWER COMPLEXITY
↓
QUALITY + VALUE
↓
LOWEST
POSSIBLE PRICES
↓
MEMBER TRUST
THE ULTIMATE OUTCOME: MORE VALUE FOR MEMBERS
Quality products. Responsible operations. Efficient buying. Low prices. Long-term trust.
Mission
→
Ethics
→
Operating Discipline
→
Member Value
Obey the Law
Operate in compliance with applicable laws and
requirements.
01
Take Care of Our Members
Protect member trust and deliver quality, value and
service.
02
Take Care of Our Employees
Support employees through competitive compensation
and career development.
03
Respect Our Suppliers
Build responsible, respectful and mutually beneficial
supplier relationships.
04
Reward Our Shareholders
Create sustainable long-term business value.
05
