Now Reading
Costco Mission and Vision Statement Analysis

Costco Mission and Vision Statement Analysis

Costco mission statement is: "To continually provide our members with quality goods and services at the lowest possible prices."

Introduction

At the global level, Costco Corporation has established itself as a top company led by its mission and vision statements. In over 35 years, the company has demonstrated its business prowess by recording a steady growth coming second as the largest retailer of its kind globally.

The growth of the company is a clear reflection of its adherence to what is enshrined in the two corporate statements Costco respects doing things by the book, as revealed by the strategic approaches that have so far been a success for this corporation. The corporate mission statement of a company highlights the tactics developed by the organization management to advance the company towards a set future.

It works in collaboration with the vision statement of a firm, which is essentially the set path that the management wants the company to follow, or a predetermined development track. In this case, Costco has set a vision statement solely based on the overall experience the company wants the customers to have while interacting with it. It also includes a level of satisfaction.

On the other hand, its mission statement zeros on the technicalities of giving the customers this worthwhile experience through value-based services and products. The core values also come in handy as the aspects that guide the general practices and attitudes of the organization. Costco incorporates these to ensure that everyone remains on board to propel the company towards the desired future.

For instance, it being respectful and promoting employee development as critical determinants of how effective the company can remain compliant with the mission and vision statements.

Mission Statement

Costco mission statement is “to continually provide our members with quality goods and services at the lowest possible prices.” The company puts an emphasis on the actual benefits the customers enjoy while shopping with this company. It focusses on the quality of what they get and the price attached to the same. The mission statement has outlined characteristics:

  1. Reasonable prices. Costco has won the heart of many customers through its ever attractive pricing strategy. The company values the pockets of its clients, and that explains why it has consistently battled to not only set affordable prices for the goods and services it offers, but also influence the general pricing of various products in the market. The deal gets even more exciting when one subscribes to the membership program. As the company quotes, this makes the ‘shopping experience a pleasurable one.’
  2. Growing the retailing sector. As part of the bigger retailing sector, Costco strives to be an influencer of the marketing dynamics with an effort to creating the best customer experiences across the sector. It does this through its open and well-structured retailing approaches that demonstrate the value of the company in society. For example, the company goes beyond its mainstream duties to developing the communities and protecting the environment. Its sustainable commitments and charitable contribution programs are some of the practical ways Costco has influenced the growth of this industry. It has proven that retail corporations are more than what they normally do. 
  3. Quality goods and services. Costco brand has always been known for quality goods and services. In fact, this has been the major selling approach exploited by the company ever since it was founded in 1983. Ideally, the branding around this factor has without a doubt given the company a competitive advantage over many other retailing companies that have since emerged. In fact, the return policy at Costco is proof of how serious the company takes quality by indicating that it targets 100% satisfaction of all its clients with the merchandise that they get. Anything short of this guarantees a return as dictated by this policy.

Vision Statement

Costco vision statement is “to provide a wide selection of merchandise, plus the convenience and exclusive member services, all designed to make the shopping experience pleasurable.” This is an implied vision statement as the company has no specifically defined one. However, the about us page of the company gives an account and impression of what the company wants to be in the future as visualized in this statement. The statement is made up of the following key points:

  1. Wide merchandise selection. To satisfy this point in its implied vision statement, Costco has tremendously increased the types of goods and services it deals with. The historical trend of this company is a testimony of how hard the management has worked to make it a place where customers can virtually go for all their needs ranging from groceries, pharmaceuticals, and opticals to photo services. Essentially, there is nothing that Costco does not do or provide.
  2. Convenience. Costco works to ensure that it saves the clients from all the hustle and bustles of shopping. Through it’s integrated and easy to navigate site, the company has made shopping experience fun and most of all memorable for all its clients. To make it even better, the customer has less to worry about getting their products. Costco has a controlled and trusted delivery system to ensure the customer not only gets what they shop for in pristine condition but also fast. 

Core Values

Costco core values include “obey the law, take care of our members, take care of our employees, and respect our vendors.” The company has a strong track record of running its business in such a way that it passes out as a role model for other players in the sector. The declaration by the company that these values are crucial to how the company operates is an indicator of the role they play in the overall success of the business.

Costco is clear that acting within the law of the land is a major indicator of how it also respects all other entities that form the foundation of the company. These include the members, vendors as well as the employees. In this way, Costco stresses why it has always prioritized doing good, something that has truly reflected in the consistency of its growth ever since the company came into existence.

References

  • Alshakhoori, N., Alkenaizi, A., & George, S. Business Strategies of Discount Retailers: A Comparative Study of Target Corporation and Costco Wholesale Corporation.
  • Anitsal, I., Anitsal, M. M., & Girard, T. (2013). Retail mission statements: Top 100 global retailers. Academy of Strategic Management Journal, 12(1).
  • Anitsal, M. M., Anitsal, I., & Girard, T. (2012). The core of retail mission statements: top 100 US retailers. Academy of Strategic Management Journal, 11(1), 131.
  • Barchiesi, M. A., & La Bella, A. (2014). An analysis of the organizational core values of the world’s most admired companies. Knowledge and Process Management, 21(3), 159-166.
  • Bellin, J. B., & Pham, C. T. (2007). Global expansion: balancing a uniform performance culture with local conditions. Strategy & Leadership, 35(6), 44-50.
  • Cascio, W. F. (2006). Decency means more than “always low prices”: A comparison of Costco to Wal-Mart’s Sam’s club. Academy of Management Perspectives, 20(3), 26-37.
  • Chun, R., & Davies, G. (2001). E-reputation: The role of mission and vision statements in positioning strategy. Journal of Brand Management, 8(4), 315-333.
  • Costco – About.
  • Goldberg, M. (2011). A Textbook Dilemma: Should the First Sale Doctrine Provide a Valid Defense for Foreign-Made Goods. Fordham L. Rev., 80, 3057.
  • King, D. L., Case, C. J., & Premo, K. M. (2010). Current mission statement emphasis: be ethical and go global. Academy of Strategic Management Journal, 9(2), 71.
  • Krapfl, J. E., & Kruja, B. (2015). Leadership and culture. Journal of Organizational Behavior Management, 35(1-2), 28-43.
  • McCune, J. (1999). Exporting corporate culture. Management Review, 88(11), 52.
  • Nguyen, A. Costco: From Concept to $1 Billion in Three Years.
  • Ratunil, P. (2000). Is This Why We Came? To Have Costco Cards and AAA Memberships?.
  • Thompson Jr, A. (2009). Costco Wholesale Corporation: Mission, Business Model, and Strategy. In cours. etsmtl. ca. Retrieved March 10, 2014.
  • Yukl, G. (2008). How leaders influence organizational effectiveness. The leadership quarterly, 19(6), 708-722.
What's Your Reaction?
Excited
1
Happy
0
In Love
0
Not Sure
0
Silly
0

© 2019 Copyright of Mission Statement Academy - All rights reserved

Scroll To Top