Question:

From a strategic management standpoint, and looking at Costco's core competencies:

1. How can the company diversify in the future?

2. How should the company innovate in the future to sustain a competitive advantage?

3. Should the company form a strategic alliance with another company to establish a competitive advantage. If, so which company?

4. Should the company enter a different type of industry? What type? Why? Does it align with the core competencies of Costco ?(ex: restaurants)

To answer these questions think about how Costco can better adapt, think about horizontal, vertical or geographic integration. Answers should not be obvious or included in Costco's actual plans and it should focus on the strategic aspect of the business. (i.e diversification, innovation, acquisition, mergers, integration).