Before completing these exercises, be sure to read the Costco case.

How well is Costco performing from a strategic perspective? Does Costco enjoy a

competitive advantage over Sam's Club? Over BJ$\text{'}$s Wholesale? If so$,$ what is the

nature of its competitive advantage? Does Costco have a winning strategy? Why of

why not?

Select "yes" for those statements below that are accurate and choose $"$no$"$ for those

that are not.

Costco has grown to become the third largest retailer in the United States and the

world, and the clear leader of the discount warehouse and wholesale club segment

of the North American retailing industry.

Net sales at Costco's warehouses are rising briskly; memberships and membership

fees are likewise rising. Sales per warehouse location are exceptionally robust.

Costco has ample opportunities to open additional warehouses annually for many

years to come, thus paving the way for continued growth in sales and membership.

The company's stores attract upscale consumers in large numbers; many members

are loyal Costco shoppers.

Costco has recently had the slowest rate of growth in sales revenues, operating

income, and net income.

BJ$\text{'}$s Wholesale is clearly a distant third in the membership warehouse segment and

will likely never match the other two rivals in terms of total numbers of stores or sales

per store or overall customer draw and allure.

BJ$\text{'}$s operating return on assets is comparable to Sam's warehouse.