How is Costco’s business model different from other retailers such as Walmart and Sam’s Club? Why do you think Costco’s strategy works? Beyond lower turnover, how else does Costco benefit from treating its employees well?

Case Application 2: A Simple Strategy at Costco

Read “Case Application 2: A Simple Strategy at Costco” on pages 301-302 of your text and answer the following: How is Costco’s business model different from other retailers such as Walmart and Sam’s Club? Why do you think Costco’s strategy works? Beyond lower turnover, how else does Costco benefit from treating its employees well? Are you surprised that Costco sells cars? How does offering diverse products help the company attract new members?

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