This way, the company is able to ensure the same number of customers as before the financial crisis.
Such a defender type company should best rely on long-term planning, given the slow modifications that characterize the macro-environment. However, it is recommended to implement a short-term strategy also, in order to overcome the negative aspects that emerge because of the financial crisis.
SWOT analysis
The company's strengths are:
Tradition
Stability
National presence
High quality
Acceptable prices
Customer-oriented strategy
The company was established a few decades ago and the fact that Kohl's has continuously developed since its beginning proves that stability is one of the most important strengths a company could have. Even more, given the financial crisis that characterized the global economy, customers will appreciate stability. Customers are now oriented towards higher quality and higher priced products. Kohl's has acknowledged this orientation that is followed by the company's strategy.
The company's weaknesses are:
Large number of employees
Long-term strategy
The company is operating approximately 1003 stores nationwide that require many employees at store level and at corporation level. This means that the company does not have a flexible organizational system. Also, given the fact that Kohl's is a defender company, its strategy is a long-term one. As mentioned above, given the new economic trends, such a strategy might not be effective.
The company's opportunities:
New outsourcing countries
It is recommended that the company maintains prices as low as possible. This means that the company's products require production and transportation that can be achieved at low costs. Such production outsourcing countries include Vietnam and Bangladesh.
The company's threats:
Financial crisis
Although the company may not be severely affected by the financial crisis in a direct manner, it may be affected indirectly through its customers that may choose to cut back on unnecessary goods.
Recommended strategy
In more normal and stable economic circumstances, it would be recommended that the company develops a long-term strategy based on growth and international expansion. However, given the financial crisis that characterizes the global economy, it is recommended that Kohl's follows a short-term strategy until economic matters return no normal and the macro-environment will be more stable.
It is expected that customers will change their purchasing priorities in the next period of time and will not focus on items like apparel, footwear, or small electronics. Therefore, it is recommended to lower the prices for the most purchased products at Kohl's. However, such an action must be implemented without diminishing quality.
Marketing mix
Product strategy
As mentioned above, it is expected that customers' purchasing priorities will change in the next period of time. The company should remove its focus from expensive, luxury products to other products that have more frequent usability and that are purchased in larger quantities by customers.
The standards of quality must be maintained at the same level as before. It is not recommended to involve in any research...
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