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Strategic Recommendations

Strategic Recommendations

Strategic Recommendations

Kmart:

 

Since Kmart did not initially dominate many of its markets, it could not develop its distribution system effectively. Many of the shelves in its stores were empty or held items that were not selling. Kmart lost to other retailers because it did not invest in the right technology and logistics, putting the company in a position where it would never catch up. The final nail in Kmart’s coffin was its slow adoption of e-commerce as more and more customers turned to the internet for their needs. They failed to make the technological investments in their company that would have enabled effective supply-chain management, which would have allowed for effective inventory control and items in stock. Customers were left disappointed and had poor shopping experiences because of this, especially regarding advertising products. It does not appear that they can locate any key strengths that would attract customers or potential shareholders, given that it has filed for Chapter 11 bankruptcy and the once-loyal customer has switched to its rivals. Kmart needs to focus on its private brand labels—Martha Stewart Every day, Jaclyn Smith, Disney, and Sesame Street—and a value-for-money proposition for all its products—their most substantial competitive advantage. You will be able to maintain your growth and profitability if you have a clear understanding of your customers’ shifting requirements and a consistent message to convey to employees as well as customers.

· Supply chain distribution, Kmart did not effectively develop its distribution system because it did not dominate many of its markets. In its stores, many racks were exposed or contained stock that wasn’t selling.

· Utilization of information technology, Kmart didn’t overlook data innovation. However, despite significant investments in IT, Kmart never utilized its technology to its full potential.

· In contrast to Walmart and Target, Kmart did not define its target market. The company suffered because it failed to appeal to a specific demographic, despite having bargains. Kmart tried to appeal to everyone, but it became uninteresting and lacked an identity.

Question: please provide a one page recommendation for addressing the strategic concerns you identified above.

*You might provide execution keys, explain how your recommendations address the
strategic concerns you identify, or why you chose your recommendations*


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