Kmart Corporation: Seeking Survival In Changing Marketplace

1428 words - 6 pages

Executive SummaryStatement of the ProblemHow can Kmart Corporation remain competitive in the retail market?Objectives- To determine Kmart's strengths, weaknesses, opportunities and threats.- To identify Kmart's customers, suppliers, competitors, new competitors and substitutes.- To make a financial analysis on Kmart.Recommendations/ ImplementationsKmart's technology has improved over the years however the high quality of technology today could make their world an entirely different place if they would invest. They could use it to account for all the products that are sold and instead of ordering the items themselves they could be directly connected to their suppliers. This would enable the supplier to know when a certain product is purchased. This in turn will allow them to send another one out to the store so the inventory of products is what the customer wants. This could cure the issues they are having with the product needed not available on the shelves. They could also create self checkout lanes to enable more workers to be on the floor and answer questions. This could improve their customer service. There are so many ways Kmart could improve their stores by updating the technology.Kmart has done quite a bit research to find out what needs to be done to win back their customers and if they would work on fulfilling these results they would be a better company. Not only would the company be able to solve their inventory problems but they would be able to satisfy their customers. Kmart has been going down hill for a period of time and with Wal-Mart and Target being such hard competition Kmart would be able to improve their stores and make consumers visits more pleasurable which in turn would make them want to come back again and would make Kmart more successful. On the other hand external forces are not the only items that impact the way a store should be ran. The company has some internal forces that impact how successful the company can be as well.Method of AnalysisS.W.O.T AnalysisStrengths- Operates nationwide in the United States.- Merged with Sears- Blue Light Specials- Sell of stores after bankruptcy to boost profits- Bankruptcy will help them work better with partners to lower costs and improve merchandisingCustomer Service and available products- Private brand labels such as Matha Stewart Everyday, Jacklyn Smith, Route 66, Joe Boxer, Disney and Sesame Street.Weaknesses* Inventory management problems- Customer satisfaction problems- Kmart is having difficulty attracting customers- Change in Kmart's executives- Troubles differentiating themselves from their competitors- Strategy of the company is unclear to many consumers- Many of the stores are outdated and needs remodelingOpportunities- Accelerated store expansions and refurbishing- Capitalizing on dominant lifestyle departments- More capital investment in retail automation- Aggressive and focused advertising program- continued growth through specialty retail programs- Introducing...

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