The history of Taiwan hypermarket industry began with the entering of Makro in1989. The same year, the French company Carrefour established a joint-venture with President Group in Taiwan. Besides Carrefour and Makro, companies that joined the market include local brands Geant and RT-MART and international brands like Costco and Tesco. After years of fast booming in the early stage of development, the entire industry has faced stagnancy for years. Why the industry suffered a downturn can be explained from the following aspects: investors are not optimistic about the overall macroeconomic conditions, consumer confidence is too weak, the competition within the Taiwan hypermarket industry is intense, and the strategic groups of all the participants in the markets are similar. All the reasons combined caused some company have no choice but leave the market or change their strategy. Macro left Taiwan market and Tesco Taiwan are included in Carrefour Taiwan. However, not every company in this industry suffered, Costco¡¦s sales increased when the industry top leaders, Carrefour and RT-MART, faced decreasing sales last year. The purpose of the study is to understand how Costco satisfies customer demand through its unique way in the competitive Taiwan hypermarket industry, how Costco makes consumers accept its way of doing business and how this unique business model differs from competitors in terms of operation, profit earning by analyzing the external industry competition, consumer demand that Costco faces and Costco¡¦s internal operation model. Besides internal and external analysis, the author designs a questionnaire that focus on Costco¡¦s customers¡¦ feelings about it.