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Costco External Analysis Essay Example

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Costco External Analysis Essay Example
Strategic Case Analysis:
COSTCO
(Nasdaq: COST)
Strategic Management
MGT4340 Table of Contents

1.0.0. Executive Summary…………………………………………………
2.0.0. Company History…………………………………………………….
2.1.0. Background…………………………………………………….
2.2.0. Purpose of this study ………………………………………….
3.0.0. External Analysis ………………………………………………….
3.1.0. General Environmental Analysis ………………………….
3.1.1. Demographic Segment ……………………………….
3.1.2. Economic Segment …………………………………
3.1.3. Political/Legal Segment ……………………………
3.1.4. Socio-Cultural Segment …………………………..
3.1.5. Technological Segment………………………………
3.1.6. Global Segment ………………………………………
3.1.7. Summary of General Environment Analysis………….
3.1.8. Driving Forces ……………………………………….
3.2.0. Industry Analysis ……………………………………………
3.2.1. Description of the Industry……………………………
3.2.2. Industry Dominant Economic Features………………..
3.2.3. Market Size ……………………………………………
3.2.4. Market Growth Rate………………………………….
3.2.5. Industry Trends………………………………………..
3.2.6. Five Forces Analysis ………………………………….
3.2.6.1. Threat of New Entrants……………………..
3.2.6.2. Power of Suppliers ………………………….
3.2.6.3. Power of Buyers…..…………………………
3.2.6.4. Power of Substitutes………………………….
3.2.6.5. Intensity of Rivalry ………………………….
3.2.7. Summary of Industry Analysis………………………
3.3.0. Competition Analysis…………………………………………
3.3.1. Industry Competitors …………………………………
3.3.2. Rivals Anticipated Strategic Moves……………………
3.3.3. Summary of Competitive Analysis…………………….
3.3.4. Key Success Factors……………………………………

1. Executive Summary

Costco Wholesale is recognized as the largest wholesale club operator in the US. Over the three-year time period of 2005-2008, this company has expanded its membership base while increasing its number of warehouses both in the U.S. and internationally. In 2008, U.S. sales increased 10.4%, revenue from Canadian operations grew 20.7%, and Costco's other international sales increased by 21.9%. This growth was primarily driven by a 6% and 15% increase in

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