2. What are the chief elements of Costco’s strategy and core values?
The 3 components of Costco’s strategy are low pricing, limited product selection and what the company calls “treasure-hunt merchandising”, or high-end products acquired legally on the gray market from other wholesalers or retailers looking to get rid of excess or slow selling inventory. While Costco strives to beat the competition’s pricing, it also delivers exceptional value in its high-end offerings and customer service, giving consumers more for their money. Costco also utilizes a competitive strategy which is to be the best-cost provider in the wholesale club category. This strategy is aligned with Costco’s abilities and resources, i.e., a streamlined supply chain, purchasing power, good supplier relationships, high sales volumes, quick inventory turnover, and excellent customer service.
3. Do you think Jim Sinegal is an effective CEO? Sinegal is an effective CEO as shown by his goals to keep Costco as the number one wholesaler through his