Case $2$: Costco Wholesale in $2022$: Mission, Business Model, and Strategy

What is Costco$$s business model? Is the company$$s business model appealing? Why or why not?

What are the chief elements of Costco$$s strategy? How good is the strategy?

Do you think Jim Sinegal was an effective CEO? What grade would you give him in leading the process of crafting and executing Costco$$s strategy? How well is Craig Jelinek performing as Sinegal$$s successor; what grade would you give him so far in leading the process of crafting and executing strategy? What support can you offer for these grades?

What core values or business principles did Jim Sinegal stress at Costco?

What is competition like in the North American wholesale club industry? Which of the five competitive forces is strongest and why? Use the information in Figures $3\mathrm{.}23\mathrm{.}7($and the related discussions$)$ in Chapter $3$ to do a complete five$-$forces analysis of competition in the North American wholesale club industry. What factors are acting to intensify$/$weaken rivalry in the wholesale club industry? What factors are acting to intensify$/$weaken the threat of new entrants in the wholesale club industry? What factors are acting to intensify$/$weaken the competitive pressures associated with substitutes in the wholesale club industry? What factors are acting to intensify$/$weaken the bargaining power and leverage of suppliers in the wholesale club industry? What factors are acting to intensify$/$weaken the bargaining power of buyers in the wholesale club industry? Which of the five competitive forces is strongest and why?

How well is Costco performing from a financial perspective?

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

What do you think of Costco$$s compensation practices? Does it surprise you that Costco employees apparently are rather well$-$compensated?

What recommendations would you make to Costco top executives regarding how best to sustain the company$$s growth and improve its financial performance?