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Case Study Questions
BUSINESS POLICY SPRING TERM 2012
BUS 450

Questions for the Next Several Cases

Friday, February 24
Case: Competition among NA Warehouse Clubs (case 4 in text)

1. 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 3.4, 3.5, 3.6, 3.7, and 3.8 (and the related chapter discussions on pp. 57-70) to do a complete five-forces analysis of competition in the North American wholesale club industry.
2. Do all three warehouse club rivals—Costco, Sam’s, and BJ’s Wholesale—have highly similar strategies? What differences in their strategies are apparent? Does one rival have a better strategy than the others? If so, why is it better? Does one rival have a somewhat weaker strategy than the other two? If so, why is it weaker?
3. Which of the three warehouse club rivals has been the strongest financial performer in recent years? Perform a financial analysis of all three clubs.
4. Does the data in case Exhibit 5 indicate that Costco’s expansion outside North America (the U.S. and Canada) is financially successful? Why or why not?
5. Five years from now, is Costco’s standing as the industry leader likely to be stronger or weaker? Are the other two rivals likely to gain or lose ground on Costco? Why or why not?
6. What recommendations would you make to Jim Sinegal regarding the actions that Costco management needs to take to sustain the company’s growth and improve its financial performance?
7. What actions do you think management at Sam’s Club should take to boost revenue growth and overall financial performance?
8. What actions do you think management at BJ’s Wholesale should take to boost revenue growth and overall financial performance?

Monday, February 27
Case: Competition in Energy Drinks, etc. (case 5 in text)

1. What are the key economic indicators for the alternative beverage industry? Does the industry offer attractive
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