what Costco must do to be successful going forward. Identify how the company should address weaknesses in resources and capabilities. What capabilities does Costco need to develop? Focus more specifically on the exploitation of strengths. In which markets segments and in relation to which customers are Costcos resource and capability strengths likely to be most effective? How should the firm compete? How can the company develop them?

To help with framing an issue, consider the most critical issues that Costco needs to grapple with to obtain or maintain competitive advantage.