Costco's Strategy

1. Do you think Jim Sinegal is an effective CEO? What grades would you give him in leading the process of crafting and executing Costco’s strategy? What support can you offer for these grades? Refer to Figure 2.1 in Chapter 2 in developing your answers. I believe that Jim Sinegal is a very effective CEO. His company was the first U.S. company to ever reach 1 billion in sales in less than six years. He exhibited leadership skills and engaged with team members at other Costco Stores. He believed in calling one another on a first name basis and had an informal dress clothes to avoid the typical boss attire. Sinegal did things that most bosses don’t do, and these things allowed him to be an effective leader.

I would give Sinegal an “A’”
Allocating ¼ of treasure hunt items allowed for increased the likelihood that each customer would purchase one of these items.

Because Costco’s centers a lot of their business in remaining low cost, they do not spend too much money in advertising. Costco uses the word of mouth advertising to lure more customers in, which is another approach to keep cost low.

Sinegal manages his strategies by ensuring that excellent employees are brought upon his team. He attracts quality employees by ensuring that they are paid well and have a multitude of benefits. After they are brought onboard they are treated respectfully by policies, procedures and various training. Costco also has an open door policy, which ultimately makes employees feel comfortable to voice any concerns, or questions they may have. In turn, this will make feel them happy while in the work place, thus leading to more
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?

From a strategic perspective Costco is performing efficiently. They are using a low cost, high quality product to achieve high sales. They spend very little money on anything extra because they want their customers to enjoy low cost items.

To intend to grow sales and profits they by building an even larger and fiercely larger database. This will allow Costco to expand offerings of private label products so that customers have a place to shop for low practical business and household supplies.

Yes Costco does have a competitive over Sams Club. They offer lower price items, upscale treasure items, member privileges, American Express payment, and overall customer service appeal.
Yes Costco does have a competitive advantage over BJ’s Wholesale as well. They offer prescription filling services as well as all the stuff mentioned above. I believe that Costco has a winning strategy. Time and time again successful companies are taking a low cost, high quality strategy to out beat their