THE SWOT KMART Essay

THE SWOT KMART

Kmart was the largest retail discount with competitors such as Wal-Mart continually increasing their profit, Kmart's market share has dwindled to 13% and continues to decline. Wal-Mart's early use of IT within the industry was a major factor to Wal-Mart rise about Kmart and the fall of this once mammoth retail chain. Wal-Mart was the first within the industry to operate on a large-scale format, operate a computerized inventory system, use bar codes and wireless scanners, allow electronic data interchange with suppliers, and expand around central distribution centers. With its recent Chapter 11 bankruptcy filing and the once loyal customer going to their competitors, it does not seem as though they can find any key strengths to attract customer’s or potential shareholders. Kmart needs to focus on their strongest competitive advantage their private brand labels such as (Martha Stewart Every day, Jaclyn Smith, Disney, and Sesame Street) and a value-for-the-money proposition on all the products that the store carries.
The competition of Wal-Mart's low prices is a weakness for Kmart, because they are unable to match these prices. Another weakness is their stores are considered old and outdated, their distribution systems is not very efficient. Kmart does have some opportunities that could improve their situation, with the purchase of the IBM systems this will give them an improvement in customer relations and processing, update the old store with a new look, increase advertising of their strongest brands, work on developing a new supply chain management that can handle data efficiently, this will eliminate unnessacerry inventory in house. If Kmart puts these opportunities in place they might be able to stay in the game. The Martha Stewart scandal in 2001 hurt the company's image, at this point Kmart could not afford to match Wal-Mart's low prices. Still yet Kmart was dealt another blow with the terror attacks in United States on September 11, 2001. Kmart stop selling guns and ammunition this resulted in a boycott by gun owners.
In January 2002, Kmart filed for bankruptcy protection; Here are some of the reason that Kmart had to file for bankruptcy, they failed to differentiate their image from other discount retailer, the company's supply chain management had a lot of problem, starting with outdated distribution centers that were inefficient, outdated IT Technology, unsuccessful marketing techniques with their best products, not being able to match Wal-Marts competencies and capabilities, inability
To execute a merchandising strategy that would appeal to customers, budget cutting, poor performing stores, declining profits.
It shut down more than 300 stores in the United States and lay off around 34,000 workers as part of a badly-needed restructuring. On May, 2003, Kmart officially emerged from bankruptcy protection as Kmart Holding Corporation and on June 10, 2003 it began trading on the NASDAQ as "KMRT".
Merger of Kmart and SearsOn November 2004, Kmart announced its intentions to purchase Sears. In a surprise merger, the Kmart Corporation would change its name to Sears Holdings Corporation. The new corporation announced that it would continue to operate stores under both the Sears and Kmart brands.
The two companies cited several reasons for combining forces:
Opportunities for both companies to expand on their Proprietary brands held by both companies could be made more accessible to their target demographics by leveraging their combined real estate holdings. This was estimated to

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