Chapter 8, Problem 2CFCA

Summary Introduction

To determine:

With reference to Costco's competitive strategy, an evaluation its target customers, core competence and how it builds synergy and delivering value.

Case Summary:

Costco is the 4^th largest retailer in the USA with over 425 outlets. Although being accused of exploiting workers, the company is paying very high wages compared to other competitors in the industry. However, the company has reduced its cost by limiting advertising and other costs. The question remains if the company can continue competing in this manner.

Characters:

Craig Jelinek-CEO

Introduction:

Competitive strategy is the strategies /actions Costco takes in order to achieve its competitive advantage. So based on their competitive advantage in comparison to their competitors they will build in strategies to achieve it. Costco's target market, core competence and how it builds strategy and deliver value is explained follows.