Sony
Applied Management
Case # 27: Kmart Corporation: Seeking Customer Acceptance and Preference
1. - Key Question
Which strategy Kmart Corporation could applyto be competitive?
2.- SWOT Analysis
Opportunities * Adquisitions * International expansion * Technology * Diversification * Market growth | Threats * Competition * Kmart is new todiscount while its competitors are in the market for longer period of time. * Customers loyalty * Substitutes products * Kmart is competing directly with Wal-Mart and this competition coulddestroy Kmart is it does not choose a specialized field. |
Strenghts * Kmart is specialized in certain products * Uses good marketing strategy * Good location * High turnover and concentrationon return on investment. * Good marketing strategy | Weaknesses * Negative publicity * While adopting change is good, but the fast change of strategies taken by Kmart has caused many problems.* Kmart didn’t go international and it has stopped this trend. * Kmart depends on the experience of its people who have always been taking wrong strategies. * High investment in marketingresearch. |
3.- Alternatives
* Kmart must try to break the competition by going internationally for opening new markets or getting raw materials from international cheap markets.
Pros | Cons |* Increase market share * Customer loyalty * International expansion | * High costs of advertising * Uncertainty |
* Kmart Corporation should differentiate itself from its competitorsby focusing on the level of service while maintaining competitive prices with high quality.
Pros | Cons |
* Diversification * Customer loyalty * Good reputation * High quality ofproducts. * Increase market share | * High costs. * High advertising budget. |
* Kmart can start to acquire weak competitors which are going out of the market instead of building new stores....
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