Internal Strategic of Costco Wholesale

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Do on Costco Wholesale to answer all questions below and give a source if you use to explain answers:

1. Gather data about what Costco does and how it works. Study the resources, capabilities, and competences of the firm you are analyzing. A good place to start is by listing the important assets the firm has. List firm tangible assets that you know of. Then make a separate list of intangible assets.

2. Now use the VRIO framework to identify the competitive position of Costco. Which, if any, of the resources listed in the previous answer are helpful in creating and sustaining a competitive advantage for the firm? Does VRIO analysis remind you of assets you had not previously thought of?

3. Identify the core competences that are at the heart of any competitive advantage the firm holds. (Remember a firm will have only a few – perhaps only one – core competences.) Do you see the firm trying to create any new core competences to create new competitive advantage?

4. Perform a SWOT analysis for Costco. Remember that strengths and weaknesses (S, W) are internal to the firm, and opportunities and threats (O,T) are external. Prioritize the strategic actions that you would recommend to your firm. Refer to the ‘Implications for the Strategist’ section of Chapter 4 of the text on how to conduct a SWOT analysis and provide recommendations building from strategic alternatives. (Note that recommendations you make at this point are a first draft only – you may decide later in the term that your recommendations should be completely different.)

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