800-1000 case study done on Costco answering questions in chart attached inword doc
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Costco Case Study
Following the pattern below will ensure your readiness for the next steps. If you insert the
question numbers in the paper, it will help you organize it and answer each one clearly.
1. Introduce the organization: basic facts and brief history
2. Specifically identify the industry, life-cycle stage and the
competitors – see IBIS World database
4. Who has succeeded and failed in the in the industry? What
are the Critical Success Factors (or KSF)?
5. What political/legal forces affect the industry?
6. What economic forces affect the industry? What is the market
7. What social forces affect the industry?
8. What technological forces affect the industry?
9. What is the current firm-level or corporate-level strategy?
10. What is the current business-level [generic] strategy?
13. What is the organization’s financial position and financial
strategy – how do they make and invest their money?
16. / 17. What are the organization’s Strengths and
Weaknesses? On what competencies should they build?
18. / 19. What are the organization’s Opportunities and Threats?
20. What strategic alternatives are available to the organization?
21. What are the pros and cons of these alternatives?
22. Which alternative should be pursued and why?
Title page with your name, course, date, and an appropriate title.
You can use single or double space, Times New Roman, and 12pt font.
Support your position.
When all is done, give a brief conclusion.
Upon citing works, add a separate reference page.
These APA additions are NOT a part of the word count that should approximate 800-1000
words. Do not simply answer the questions; provide support and articulate a path forward.
Case Study Reading
The first Price Club Warehouse was opened in San Diego in 1975 by Sol Price, Robert Price
(Sol’s son), Rick Libenson, and Giles Bateman. The firm originally sought to sell merchandise in
volume at deep discounts only to small businesses, but later expanded the concept to include
government, utility, and hospital employees. By 1980, the company had four stores in Arizona
and California and went public.
During the 1980s, the company expanded to the eastern United States and Canada. In 1988, Price
Club acquired grocery distributor A. M. Lewis and launched Price Club Furnishings. In the early
1990s, however, competition intensified from Sam’s Club and Pace. In 1992 and 1993, Price
Club’s joint venture with retailer Controladora Comercial Mexicana led to the opening of two
Price Clubs in Mexico City.
Later in 1993, Price Club merged with Costco Whole-sale. During the 1990s, the firm expanded
its international interests, launching outlets in Great Britain, Japan, and South Korea. Price Club
changed its corporate name to Costco Companies in 1997 and again to Costco Wholesale in
Today, Costco is the largest wholesale club operator in the United States, operating 672
membership ware-houses—each amassing about $150 million in sales—and serving about 65
million members. Most of its outlets are located in the United States and Canada, but additional
stores can be found in Mexico, Japan, Australia, South Korea, Taiwan, Puerto Rico, and the
United Kingdom. Membership costs about $50 per year and is available to businesses and
Costco’s business model emphasizes rock-bottom prices on a limited selection of mostly namebrand products in a wide range of merchandise categories. A typical outlet carries about 4,000
products, ranging from alcoholic beverages and appliances to fresh food, pharmaceuticals, n and
tires. Costco also offers its members insurance, financial, and travel services. Its subsidiary,
Costco Wholesale Industries, is an operating manufacturing business in food packaging, meat
processing, and jewelry to support the retail efforts.
Much of Costco’s success can be attributed to its ability to minimize costs by negotiating fiercely
with suppliers. The company never requires its members to pay more than 14 percent above the
firm’s cost for goods. Jim Sinegal stepped down as CEO in 2012 and was succeeded by COO
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