(B) DIAMOND E FRAMEWORK Strategy - PEST Environmental Link Alignment: Test the STRATEGY above against anyONE (1) PEST factor STEP 1: PEST Factor to be addressed STEP 2: Test the Linkage of Strategy to the PEST factor STEP 3: Forecast - Will this linkage achieve its future goals & plan or is there a gap The pest factor that will be addressed will be a threat from the technological standpoint. The rise of online shopping and ecommerce sales the past 5 years are on a massive incline while less and less people want to do in person shopping. This is a huge threat for Costco as one of the maker retail brands in the world, with a limited presence online. The current strategy Costco uses is a low cost, bulk sale, and differentiated product strategy. This means that the company focuses on selling high quality items in bulk for lower than its competitors, and also uses a membership program to gain customer loyalty and a competitive advantage. This strategy linkage to the PEST factor could work, as Costco can continue to sell most of its products online and continue the membership for customers, in which they will still receive the rewards and benefits of in store shopping. I believe it could work for successful future goals but there are some gaps and barriers that Costco will have to work around. First being that Costco's strategy is all about the bulk items that customers can have more than the product selection. Buying bulk products online might not work as it might be costly and be hard to ship for Costco. STEP 4: Rank against alternate strategic alternatives/proposals How this PEST factor ranks against the first alternative strategy of Costco is very good. One of their main strategies is their great connections with partnerships, if its businesses or suppliers, Costco uses this relationship to benefit the company on all levels. When talking about starting an online business for the company, Costco can use this strategy to get in contact with big tech companies and suppliers to build an online brand that will be successful for the brand's image and profits. How the PEST factor ranks against the second alternative strategy has some gaps but could work. One of their main strategies is having low operating costs, so having an online business of their size will be an expensive investment for the company. On RECYCLE (B) DIAMOND E FRAMEWORK Strategy - PEST Environmental Link Alignment: Test the STRATEGY above against any ONE (1) PEST factor STEP 1: PEST Factor to be addressed STEP 2: Test the Linkage of Strategy to the PEST factor STEP 3: Forecast - Will this linkage achieve its future goals & plan or is there a gap STEP 4: Rank against alternate strategic alternatives/proposals