Categorize the major sources of Costco’s strategy into three hypotheses – resources, knowledge/ capabilities, and integration/ core competences.

This video explains how Ford faced entropy and how it leveraged dynamic capabilities to rebuild itself.

https://www.youtube.com/watch?v=fm4r3V9wg8I

 

Answer in 200 words each:

a) Categorize the major sources of Costco’s strategy into three hypotheses – resources, knowledge/ capabilities, and integration/ core competences.

 

{To answer this, you may prepare a brief table like follows

Resources — [Identify resources of Costco and how it uses them strategically]

Knowledge/ Capabilities – [Identify knowledge/ capabilities of Costco, and how it uses them strategically]

Integration/ core competencies – [Identify integration/ core competencies of Costco, and how it uses them strategically]

b)  identify at least three reasons for the entropy faced by Ford in the past giving specific examples observed from the video.    Identify the different types of change/ dynamic capability Ford leveraged to rebuild itself.

c) Compare and contrast the type of marketplace in which Costco operates with that of Ford.   How do these different marketplaces influence the behaviors of these two firms?