This would leave the company with the option to choose the supplier with the best-priced, best-quality products.
The threat of substitute products and services is high, particularly from major competitors such as Wal-Mart. Wal-Mart is a major player in the industry, and the merged companies will need to be significantly creative to maintain their competitive advantage in terms of products. Furthermore, the rivalry among competitors in the industry is quite high, particularly among the major rivals. Indeed, the reason for the merger was precisely to increase the collective size of the company to make it more competitive within the market.
STRATEGY USED:
The strategy in terms of the merger was for two relatively insignificant companies to join forces to enable a global-scale retail entity in order to better compete with market leaders such as Wal-Mart (Rahman and Eisner, 2007). Part of the strategy is to improve the reputation of Kmart by merging the entity with Sears and discarding the name. Brand identity and customer loyalty are important considerations in this regard. Opinion polls and analysts revealed that the connotation with the Sears name is more positive than the Kmart name.
Whether the merger succeeded is still a question that has not been answered adequately. However, a merger is something that companies often consider if the advantages of doing so are more than the advantages connected to remaining apart.
WHAT ARE THE ISSUES AND CHALLENGES FACING THIS COMPANY?
Sears Holdings can gain a competitive advantage by retaining the brand names that have been customer favorites, such...
In fact, Lampert is cited as still frequently drawing his top picks from consulting the shareholder letters of Buffet, and drawing from Buffet's advice to guide him in his own investment decisions. Warren Buffet is famed as the billionaire chairman of Berkshire Hathaway Inc. Like Buffett, Lampert is said to seek investments in "stable businesses with predictable income streams that have very strong brands," that are currently suffering troubled fortunes
Sears / Kmart Sears and Kmart Sears History Sears began its activity in 1886, when Richard W. Sears created the R.W. Sears Watch Company. After resigning from his job as a railroad station agent, he started selling watches to other agents. In 1887 Alvah C. Roebuck joins Sears. The company introduces jewelry and other products in its catalogue. The company continues to expand its range of products and its area of activity. Sears,
The declining revenues and profits are a symptom of inertia and managerial indifference. The company's latest annual report makes allusions to doing things "the Sears way" but this way is exactly what is failing. Short of overhauling the executive suite, the company needs to reposition itself by making significant upgrades to its stores, modernizing the shopping experience, improving customer service, elevating the product line by eliminating lower-end items. In addition
Kmart -- Soaring High ShopperTrak's National Retail Sales Estimate (NRSE) reported that U.S. retail sales for the week ending April 23 increased 9.9% as compared to the same week last year. Although adverse weather throughout the Midwest led to a sharp 13.0% week-over- week decline, the Easter holiday calendar shift continued to positively impact the year-over-year retail comparison, posting one of the strongest yearly increases seen in 2005. (Vargas, 2005) Retail industry
Sears Organization's Strategy And Structure: Sears Holdings is regarded as one of the most significant broadline retailers with more than 4,000 full-line and specialty in America and Canada. The organization is the leading retailer of home appliance, consumer electronics, tools, automotive repair and maintenance, and lawn and garden. One of the major features of this organization is that it operates through its subsidiaries like Sears, Kmart Corporation, and Roebuck and Co.
Sears The importance of strategic business decisions cannot be underestimated in today's fast-paced and competitive market. As economic times resemble recession like qualities, it is even more important that struggling companies find ways to stay competitive in these interesting and troublesome times. Sears Holdings Corporation resembles a troubled company that needs to make strong strategic maneuvers in order to survive and continue to be profitable within its many business interests. The
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