Costco: The Challenge of Entering the China Mainland Market – 15%Instructions:
Please read the assigned case and complete the questions below. Be sure to:
● Consider what each question is worth (# of marks) and provide enough detail tothoroughly answer the question.
● Refer to the case to support your answers and you should also use the course textbookand content as sources to back up your answers, as needed. If used, external sourcesshould be listed at the end of your assignment. Extensive research is not required.
● Answers should be written in your own words, in paragraph and sentence form, 12 pt.font, and double spaced. Point form can be used to identify KEY points in your answer,as needed.
● In general, each answer, depending on the marks allotted, should be ½ to 1 page long, soin total your submission should be 4 to 7 pages long, not including your cover page orreference sheet.
1. Identify and explain at least four reasons why Costco was so successful in NorthAmerica from both a business model and targeting perspective. (12 marks)
2. What adjustments did Costco make in Japan to ensure success in this newinternational market? (5 marks)
3. Explain the environment and at least five key factors that existed which resultedin Costco selecting Shanghai as their first location in China. (10 marks)
4. Using a SWOT analysis, summarize Costco’s competitive environment in Shanghai.(4 marks) Identify and explain Costco’s key strength and their key weaknesscompared to existing competitors and explain how they can differentiatethemselves in this new market? (6 marks)
5. Costco is known for providing generous wages and benefits to its employees.How might this be viewed in this new market. Positively or negatively? Explainyour position. (6 marks)
6. If you were Richard Chang (SVP Costco Asia-Pacific) what would you do next withCostco in Shanghai – be specific and support your answer. (7 marks)
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