Saturday, October 12, 2019
Kmart SWOT Essay -- essays research papers
Kmart started off on the right foot back in 1899 and was a major player in supplying goods to the consumers from their small five and dime stores. From there they started to expand, they were a provider of low-cost merchandise but once the competition (Wal-Mart and Target) started opening they started loosing the fight. Since that time they have been through many changes and many hard times. By 1962 they started opening full line discount stores which continued to help the company succeed. From 1980 - 2002 five different CEOs ran the company. Some of their strategies were focused on the same track as the one before them while others had to change direction entirely in order to fight to turn the company around. Kmart has suppliers that they order their goods from so they can keep their shelves stocked. They do not make any of their own products however they do try to differentiate themselves by selling exclusive brands that include Thalia Sodi, Jaclyn Smith, Joe Boxer, Martha Stewart , and Sesame Street. KmartÃ ¡Ã ¦s strategy has changed a few times since they started out and may continue to change in order to succeed. They have faced bankruptcy in the past and have fought to continue to compete against their competitors. Kmart has many competitive and environmental forces impacting the industry today. As all organizations do some or these forces are opportunities for them while others are threats to the organization. A few of the forces are their rivals or competitors, the substitutes that can be used, and the new entrants into the market. The main rivals among the merchandising companies are Wal-Mart, Kohls, Family Dollar and Target among many more. Wal-Mart and Target are their main rivals, this is because Wal-Mart is known for their niche as having the lowest prices and Target is known for their fashions and home furnishings both of these items Kmart tries to compete against. Also buyers see Kmart as a discount store which doesnÃ ¡Ã ¦t stand when other competitors have lower prices. KmartÃ ¡Ã ¦s customer service and available products are two other items that Kmart fails to be a strong competitor in against these rivals. Therefore, the rivalry among the merchandising stores is a strong competitive force in this market. Another external force that affects the market is substitutes. Substitutes are the items a customer can buy to replace the items they purch... ...o the picture. By getting rid of their food items they would also have more room on the shelves to stock the much more requested items that customers want. Since Kmart is up against a couple well known companies they are going to need to stand out. They have their exclusive brands which is great if that is what the customer wants. They need to really push these items by marketing (TV spots and newspapers) so the consumer feels they need to have these items. They also need to put standards in place so that anytime research is done there is a project team put together to implement what changes need to be completed. Their strategy to win back the customer is failing because they are not implementing the needed changes. Instead they are closing down stores and not remodeling the ones that are still in business. They are loosing the market share to both Target and Wal-Mart because they are so focused on how to make another buck that they are not focusing on what really matters, the cu stomers. Until the customers are satisfied with the stores product (being on shelves), the service they receive and the location and shape of the stores they will not return as loyal customers to Kmart.