CostCo Case Study
- What is Costco’s business model? Is the company’s business model appealing? Why or why not?
As discussed in Chapter 1, a company’s business model explains the rationale for why its business approach and strategy will be a moneymaker. This rationale sets forth the key components of the company’s business approach, indicates how revenues will be generated, and makes a case for why the strategy can deliver value to customers and at the same time be profitable.
The information in the case lays out the chief components of Costco’s business model in a straightforward manner. Please offer very specific details of the components (bullet points) of the business model with their explanations. (Every bullet point needs to be explained)
- What are the chief elements of Costco’s strategy? How good is the strategy?
Identify the specific elements of Costco strategy and its generic strategy COSTCO is employing (among the 5 options that exist); look at how COSTCO is doing to maintain such strategy and all the other specifics that are employing.
Pricing
Product Line (categories)
Number of Products
Locations
Stores 848 in U.S
Growth Strategy
- Do you think Jim Sinegal was an effective CEO? What grades would you give him in leading the process of crafting and executing Costco’s strategy? How well is Craig Jelinek performing as Sinegal’s successor; what grade would you give him so far in leading the process of crafting and executing strategy? What support can you offer for these grades? Refer to Figure 2.1 in Chapter 2 in developing your answers.
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