Costco Wholesale in 2016: Mission, Business Model, and Strategy (C-26)
Use the questions below to help you develop your case analysis for Cotsco. Please remember to follow the format in Appendix I of the course outline to structure your paper.
1. What are the chief components of Costcos business model?
2. What are the chief elements of Costcos strategy?
3. Draw a representative five-forces diagram for the North American wholesale club industry.
4. What is your assessment of the strength of competitive pressures stemming from rivalry among Costco, Sams Club, and BJs Wholesale?
5. What is your assessment of the strength of competitive pressures stemming from the threat of entry of new competitors into the North American wholesale club market?
6. What is your assessment of the strength of competitive pressures stemming from substitutes for shopping at wholesale clubs?
7. What is your assessment of the strength of competitive pressures stemming from suppliers to the three North America-based wholesale club competitors?
8. What is your assessment of the strength of competitive pressures stemming from the customers/ members of the three North America-based wholesale club competitors?
9. What is the collective strength of the five competitive forces facing the three North America-based wholesale clubs
APPENDIX 1:
Case Study Reports Format
The format for all case study reports is detailed below.
In the elaboration of each of these sections, the student should include concepts from the chapter covered in the course.
Introduction Brief history of the company
Information about the industry – including Five Forces, PESTEL, Benchmarking, Strategic Group Map, driving forces of industry change, etc.
Company mission (stated or implied) Company objectives and goals (stated and implied) Company strategies [should link to company objectives or goals] Complete SWOT analysis (include support) Analysis of financial data for two to three years (Include analysis of the income statement, balance sheet using appropriate financial ratios.
Financials for some companies can be found in the companys annual reports or from sources like Yahoo Finance, etc. )
Main Body of the Paper Statement of Problems and Purpose of analysis (Specify the salient problem, and explain why selected.)
Identification of strategic alternatives available (a minimum of three mutually exclusive alternatives: explain logic and feasibility, and give advantages, disadvantages at the corporate, and SBU level).
Recommended strategic alternative Implementation plan (activity plan) recommended for the company (including challenges and issues).
Evaluation and control plan [optional] Conclusion Short Summary Reference section Support materials for the Company. (Research documentation)
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