1. What is your assessment of Costco’s business model? (a) Does the company have a compelling Customer Value Proposition? (b) Does the company have a viable Profit Formula? Justify your responses.
2. What are the chief elements of Costco’s Strategy?
3. What core values and business principles did Jim Sinegal stress at Costco?
4. NOTE: Use the information in Figures 3.4, 3.5, 3.6, 3.7, and 3.8 (and related discussion in Chapter 3 and the related Instructor’s Note to analyze competition in the industry.
5. Use the VRIN Tests to assess the competitive strength of three (3) different resources or capabilities of the company. Which of them seem to have the potential to support and sustain a competitive advantage?
6. On which of the five generic strategies is Costco’s basic competitive approach based? Use facts from the Case to justify and support your answer.
7. Describe three (3) strategic actions Costco employed to complement its basic competitive approach and maximize the power of its basis competitive approach ?
8. Insights Gained: Describe at least three (3) ways in which your understanding of business strategy and the strategic management process was enhanced as the result of having completed this exam.
