about the Company costco

Situation Analysis > External analysis Focus on PESTEL for the macro and micro environment. Global demographics, markets, labor costs, and design leadership should be assessed for example. Always focus on trends and directions - for example in technology, demographics, international geopolitics, ecological factors. PESTEL assessment is the most important strategic tool for the medium and longer range. For example the auto industry is subject to large disruptive forces with the competitive landscape changing rapidly. Porter's 5 Forces is an industry level assessment and is less important than a sound PESTEL analysis. The best that can be done is to assess Forces as high, medium or low - H, M, L. Always offer evidence or examples for your assessment. The trends/direction of the industry attractiveness are key. Barriers to entry are significant for the large auto companies and new comers in NEV markets - they must deal with billions in existing investments, revamp culture of combustion based technologies, develop new offerings and brand. Threat of substitutes is high - from personal transport vehicles, autonomous fleets, and newer structures which may discourage ownership altogether. Remember to assess all domestic and global factors/forces as relevant. For example sociocultural changes in food preferences of millennials - more health oriented and need for variety in cuisines. Who are the immediate competitors and members of the strategic group - companies with similar profiles in terms of market positions and strategic focus