Answer to Question #8318 in Economics of Enterprise for LaMarcus Streeter

Question

Assess the alignment of Costco’s mission and strategy. Evaluate whether or not the strategy supports the mission.

Answer 1

Costco's mission is to continually provide members with quality goods and
services at the lowest possible prices. 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. 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. That's why company's strategy support
its mission.