Kmart Corporation In 1997 Kmart Corporation was the second largest full-time discount retailer in North America with over 2,200 stores. But the company was struggling, with losing billions of dollars in sales. They were falling behind their top rivals Wal-mart and needed firm management and implement new plan that they could stick to it. They are lagging behind their competitors in other areas as well like customer service and technology.
If it seems that they have failed to implement a consistent technical strategy, it may be because they have changed leaders so many times. The company has had five CEOs since 1994, new management isn’t going to stay with what the last guy was a doing, so they want to change and start doing thing their way, which changes the momentum. At the rate that Kmart is going they’re heading for bankruptcy, they need to take action and reorganizes their actions before they get to that position.
The new management team is lead by Joseph Antonini, he needs to start investing into key merchandising and marketing initiatives to enhance Kmart’s strategic positioning, such as offering exclusive brands that differentiate Kmart from its competitors, like Martha Stewart everyday, Joe Boxer, Sesame Street and Disney for Kids. Next they need to optimize the supply chain to maximize efficiencies and service capabilities.
Then they need to pursue opportunities to reduce annual expenses through reengineering the organization, staff reductions, office consolidations, and other actions. They will need to close their underperforming stores, which would cause job layoffs for a lot of associates but would be necessary to emerge from this increase downfall and make them a stronger, more dynamic, more profitable enterprise with focused competitive position in the retail world.
Then they need to focus on a new target market. In order to be successful in an ultra-competitive market, Kmart must carve out its advantages over its competitors. Kmart cannot compete with Wal- mart’s everyday low prices so they need to think how they are going to achieve a leadership position on quality products and service.
They need to target a different group to try and bring in new customers and build a strong customer loyalty. Kmart needs to get a strong management plan, rethink their target market, and update their technology to get a strong firm grip and pull out of the hole that they’re in right now.
Quantitative data of store locations could also be collected and analyzed. The company could gather information about population sizes around different Kmart locations. In addition, the research could identify whether or not Target or Walmart locations were within a 5 mile radius of Kmart locations. The purpose of the research would be to identify if Kmart is struggling as a result of poor store location choice.
The data from the first collection method would be less likely to be reliable than the data on populations and store locations. Populations are easy to figure out as a result of the fact that census information reveals how many people live in a given area. The figures may not always be exact, but they come close enough to be useful in research.
On the other hand, consumer responses are not always as reliable. Sometimes people are unaware of the exact reasons why they choose to shop at a certain location. In addition, sometimes consumers will respond in a particular way if they think that it will increase their chances of being seen in a favorable way by the company conducting the survey. This is particularly true if there are prizes and drawings involved. Customers may respond in a positive way, even if their real feelings about the store are different.
Kmart experienced much success in the past. However, the company is currently struggling to stay profitable. Other major competitors, and a poor marketing strategy, have contributed to Kmart’s poor performance. In order to bounce back and return to their previous success, it is necessary to conduct research. The purpose of the research is to identify exactly what the company is doing wrong, and how they can improve that aspect of business. Sources of data would be consumer opinion surveys, and store locations.
