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 customers or potential shareholders. Kmart needs to focus on their strongest competitive advantagetheir private brand labels such as (Martha Stewart Everyday, 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 Another weakness is their stores are considered old and outdated, their distribution systems is not very efficient.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 sitituation, 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.
With Kmart coming out of Bankruptcy and acquiring Sears for 11 billion was a bold move which should position them as the number three discount realter. The key to this merger is they should be able to maximize
Bibliography: 6. US Industry & Trade Outlook '98. Standard & Poor 's/US Department of Commerce/International Trade Administration. McGraw-Hill Companies, Inc. 1998. 7. U.S