Caso Kmart

Kmart Corporation: seeking customer acceptance and preference

1) Which is/are the key issue or issues?
• How can Kmart respond to the competitive challenges of a leader as Walt-Mart the arena ofdiscount retailing?
• What strategy should follow Kmart in order to provide a new direction that would reposition the firm in a fiercely competitive environment?

2) Construct a SWOT (give at least5 items for each one)

Strengths
• Largest mass-merchandise retailers
• Low-prices merchandise
• Merchandise system
• Variety of departments
• Variety of extra customer services: like videorental, dry cleaning.
Weakness
• Competitive distinction
• Low gross margin
• Productivity of resources
• Lack of international recognition

• Out of stock merchandise

Opportunities
• Newtechnology
• Strategic Alliances
• Profitable niches
• Product expansion
• Acquired and merger
Threats
• Competition
• Trends in the economy
• Saturation of the market
• Consumer spending
•Recession abroad
3) Provide 3 alternatives with their analysis and comparison
• Kmart in order to continue being competitive trying to reduce the strategic moves of the leader industry, a possiblestrategy should be continue making strategic alliances and acquisitions in the different countries or towns, in that way also Kmart can be international recognized and taking advantage of the globaldemand.


PROS CONS
Increase market share Administrative conflicts
Increase revenues Problems in the alliance
Increase brand loyalty



• Kmart should use promotion strategy in orderto provide a new direction for remaining competitive. It should make bonus card to the most confident customers, also probably a weekly magazine with a set of coupons.
Also a considerably publicitycampaign, turn out to be very important, customers can know directly about the quality and products Kmart distribute.


PROS CONS
Increase market share Budget for investment
Increase revenues...