Answer to Question #8318 in Economics of Enterprise for LaMarcus Streeter
Assess the alignment of Costco’s mission and strategy. Evaluate whether or not the strategy supports the mission.
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.