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March 2, 2022

COSTCO

Business and Management, Undergraduate

Costco

1. What is Costcos business model? Is the companys business model appealing? Why or why not?

2. What are the chief elements of Costcos strategy? How good is the strategy?

3. How well is Costco performing from a financial perspective? Do some number-crunching using the data in case Exhibit 1 to support your answer. Use the financial ratios presented in Table 4.1 of Chapter 4 (pages 85-87) to help you diagnose Costcos financial performance.

4. How well is Costco performing from a strategic perspective? Does Costco enjoy a competitive advantage over Sams Club? Over BJs Wholesale? If so, what is the nature of its competitive advantage? Does Costco have a winning strategy? Why or why not?

5. What recommendations would you make to Costco top management regarding how best to sustain the companys growth and improve its financial performance?

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