Apply Porter’s value chain model to Costco (www.costco.ca). How would Costco’s information systems contribute to Costco’s competitive strategy, given the nature of its business?

Introduction

Costco Corporation began its operations in 1983 and for years it has transformed into a leading retailer globally dealing with a variety of merchandise (Rao, 2017). Providing its customers in eight countries with small and well-known brands, Costco is a multi-billion dollar retailer in warehouse club operations. Ideally, Costco is respected for its outstanding ethics as well as its dedication to quality making it a recognized leader in all areas of its business (Rao, 2017). Although Costco does not offer frill warehousing like its major competitors, it has a detailed analysis of Porter’s value chain model to not only transform its business operations but also gain a competitive advantage.

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