Swot Analysis Of K Mart Marketing Essay

October 22, 2017 Marketing

K-Mart which is normally known as Kmart is one of the prima American ironss of price reduction shops which has its central office in the United States of America. In 2005, it acquired Sears so that it could organize an wholly new company and work the chances available in the market. Sears Keeping Corporation was established in 1962 and grew to go the 3rd biggest concatenation of price reduction shops across the universe. The two chief rivals of Kmart are Target and Wal-Mart. Kmart is offering its clients high quality merchandises through a diversified portfolio of top notch trade names such as Sofia Vergara, Smart Sense, Route 66, Joe Boxer and Jaclyn Smith ( Sears Media, 13 ) .

As of February 2013, the Sears Holding Corporation has approximately 1,221 Kmart shop in 49 provinces of United States across Guam, the U.S. Virgin Islands and Puerto Rico. There are about 1,196 price reduction shops which have an mean size of 94,000 sq. pess and about 25 Super Centers with mean size of 168,000 sq. pess. It has been stated by Graff that bulk of Kmart shops are on one floor in the signifier of free standing units which are transporting the broad scope of merchandises from many classs of ware such as seasonal ware, out-of-door life, garden equipment, consumer electronics, playthings, nutrient and consumable along with vesture ( 60 ) .

Kmart is well-known for the Blue Light Specials which occurred as the surprise minutes at the shop ( ) . The worker at the shop would illume up a visible radiation of nomadic constabularies foregrounding the price reduction offers in peculiar section of the shop. Kmart is besides present in Australia and New Zealand but it has its major operations within US ( Sears Media, 16 ) .

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SWOT analysis of K-Mart

In order to measure the strategic placement of Kmart, SWOT analysis will uncover the resources and capablenesss owned by the company and the chances and menaces present for the price reduction shop. A elaborate reappraisal of all of these factors will cast visible radiation on the future facets of the retail industry in US and will guarantee that Kmart is able to work the chances available within the industry ( Zhu, Vishal and Mark, 454 ) . With the coming of clip, the retail industry is acquiring competitory as the houses are viing against each other sharply for achieving high degrees of market portion. The elaborate analysis of Kmart ‘s SWOT is as follows:


As Kmart has been present in the industry for many old ages, it has strengthened its resources and capablenesss efficaciously. The lone manner of viing in tough economic state of affairss is to put in the nucleus competences possessed by the shop. The analysis of Kmart public presentation in the retail industry reveals the undermentioned strengths:

It has a extremely committed and loyal work force and direction squad which are ever endeavoring to keep the shop ‘s fight within the industry. The employees of the organisation are considered to be an built-in portion of the corporation so that they can experience valued and worthwhile. In order to retain the employees for long period, every forces are provided the most compatible compensation bundle so that they are rewarded for their public presentation.

HR professionals of the company guarantee that they keep path of the altering demands and Torahs related to the employees so that they develop policies in conformity within the legal boundaries. The regulations and ordinances are updated often so that the employees are provided the latest compensation bundles for their occupations.

In order to supply first-class shopping experience to the clients, the gross revenues and selling forces guarantee that they are provided the most convenient one halt shopping installation. Although Kmart allocates limited sum of financess in its selling runs but it designates sufficient money for the preparation and development of gross revenues forces. Kmart chiefly relies on the experience provided to the clients on the first visit to the shop so that they become perennial purchasers and loyal to the shop every bit good.

Since every company is puting in creative activity of value concatenation supply ironss, Kmart has tried to capitalise on it by developing an efficient distribution web. It has implemented the latest Information technology system so that its operations become digital and cost effectivity can be gained from these on-line operations.

Kmart is strongly recognized among its clients for offering the most diverse scope of merchandises which are of superior quality and give them value for the money. The latest trade names are stored in the price reduction ironss so that the clients can acquire the complete scope of offerings within their budget scope.


Since every corporation has some weak countries, it is critical for them to maintain path of them so that they can be eliminated with the transition of clip ( Li and Lin, 593 ) . Kmart has some weak countries as its repute has been impacted by some events and it is of import for the company to work on them so that they can be converted into its strong countries. Kmart has the undermentioned failings:

Bankruptcy declaration which was filed by the shop in 2002 as its gross revenues were really low. Although it has been more than ten old ages since the company faced this issue but it has still impacted the trade name image of the Kmart shops to a important degree.

Kmart has developed an effectual Marketing section which carefully carries out the market research to garner information about the client demands and wants. The lone failing in this section is that the selling scheme is non decently designed and it has unexploited assorted avenues for making the mark market efficaciously.

It has allocated low net income borders in the suburban shops which is impacting its gross watercourse. It has to revise its fiscal scheme so that it can guarantee that the fiscal program is decently developed and sufficient budget is allocated for the efficient direction of operations.

The supply concatenation is uneffective as it lacks the effectivity required in the price reduction concatenation shops. Wal-Mart has created a competitory border on the footing of its efficient and inordinately cost-efficient distribution channel so that it can hold a flexible and nimble logistics model.

There is deficiency of uniformity in the shops and the mixture of merchandises is non suitably done. Most of the clients believe that the Kmart shops do non supply inordinately appealing shopping experience in the shops as they find hard in turn uping the merchandises within the mercantile establishments.


In order to measure the chances available for the shop, it is better to reexamine the external factors present in the industry such as political stableness, economic tendencies, client demands and others so that they can be availed decently. The chances available for Kmart are as follows:

The shop scheme has to be repositioned so that it can follow with the demands of the urban population. In order to beef up the image, the company has to reconsider the merchandise and service offerings so that they meet the standard degree of the mark market.

An integrated supply concatenation has to be created like the one in Wal-Mart so that the direction of operations becomes efficient and effectual. The IT system can be upgraded by availing the services of the taking corporations such as SAP, IBM or Cisco who will plan the full system in conformity to the demands of Kmart.

An up step of shop substructure is required so that everything becomes organized and disciplined. With the aid of an effectual IT system, it will be easier to plan an appealing and convenient layout of the shop so that the clients have an first-class shopping experience.

In order to increase the presence in international markets, it is of import to plan a scheme in conformity to the market demands so that the clients are able to develop an association with the trade name.

The merchandise line can be enhanced by aiming the in-between category people. This market is highly immense and it presents assorted chances to Kmart along with the potency of harvesting high sum of net income borders.


Some of the major menaces which are posed for Kmart in the retail industry are as follows:

The competition from both high terminal and monetary value competitory participants is increasing which is stressing the demand of developing a well-designed and effectual selling scheme.

The consumer disbursement power is take downing and they are looking for goods which are available at low-cost monetary values but besides supply them good quality options. Most of the clients are now switching from premium quality merchandises as the economic recession has impacted their disposable income to a great extent.

As the economic systems of graduated table can be enjoyed merely by the retail giants such as Wal-Mart, it can impact the net income borders of Kmart if it shifts its location in cost-efficient parts.

The authorities can enforce more rigorous regulations and ordinances in the retail industry which can impact its enlargement scheme and ability to vie efficaciously within the market.

External Analysis of K-Mart

PESTEL analysis of the US retail industry will foreground the cardinal factors impacting the operational activities of Kmart in its market. A brief overview of the external environment of Kmart is discussed below:

Political – Kmart ‘s operations are greatly impacted by the US authorities Torahs and ordinances. In order to ease the competition among the key participants, it has imposed assorted regulations so that unjust competition can be avoided and the clients are provided goods at sensible monetary values. The authorities has besides passed the Torahs for cut downing the use of individual bearer plastic bags so that the environment is protected from any sort of pollution.

Economic – The economic system of the state is still in recession stage and it is apparent from its economic policies along with increasing unemployment rate and worsening consumer disbursement power. However, the demand of grocery market merchandises is inelastic due to the fact that people have to purchase them for day-to-day nourishment demands ; there is certain budget restrictions that impact the measure of the goods purchased.

Social – The households are the chief mark market of US price reduction concatenation shops as they want to supply them a platform for buying mundane points within their limited budget. Majority of the people are altering their lifestyle forms as they are going witting about eating a healthy and well-balanced diet. Kmart can stay one measure in front of the societal demands of the clients and launch the “ Eat Smart ” scope of merchandises.

Technological – All the concerns in US are doing heavy investings in their technological system so that they gain competitory border within the several industry. The online shopping tendency is deriving huge importance as most of the consumers are utilizing Internet for shopping the goods online. Kmart has developed the web site so that it can run into the demands of the clients efficaciously and supply them convenient shopping experience.

Environmental – As the environment ‘s protection has become an of import facet of every organisation, the retail shops are cut downing the C footmarks on the environment by version of the sustainable and eco-friendly procedures. Kmart has even implemented stairss for the decrease of C footmarks and has replaced the bearer bags with the reclaimable bags so that the recycling construct can be emphasized.

Legal – Kmart has to guarantee conformity with the legal Torahs so that it can guarantee that it conducts its concern activities within the legal model. Some of the statute laws which have to be purely followed as Minimum Wages Act, Equal Employment Opportunity Act and Health and Safety at Work so that the employees are provided a contributing working environment.

Action Plan

In order to beef up its place in the price reduction shop class, Kmart can set about following enterprises:

The first thing required is to develop an efficient supply concatenation direction system so that it can develop its competence in this country. Wal-Mart has been giving tough competition to the shop because of its proficient logistics system. The corporation can seek aid from IBM who will guarantee that the most flexible and advanced system is implemented for the robust public presentation of the shop.

The layouts of the shops have to be changed so that the clients can hold a fantastic shopping experience. Kmart has to heighten the merchandise offerings by adding organic nutrient options as the consumers are going witting about populating a healthy life style. It can even get down its ain private labels after beef uping its trade name image in about two old ages clip.

In order to extinguish the bad repute of the trade name, it should develop coactions with NGOs and actively take part in community related undertakings. It will demo that the company is concerned about the benefits of the society and guarantee that it does non interrupt the trust of its loyal clients.

Finally, it has to revamp its selling scheme by stressing that it is aiming both upper and in-between category clients. In order to make the clients decently, Kmart has to utilize on-line media tools such as SEO websites, societal networking sites and offering assorted publicities on its ain web site.


Hence, Kmart has to beef up its place in the price reduction concatenation shop market by set abouting assorted enterprises. The most important facets which have to be addressed by the company are development of extremely incorporate supply concatenation system, planing an effectual selling scheme, spread outing the merchandise offerings by adding organic nutrient points and redesigning the shop layout to supply the clients with a convenient shopping experience. Therefore, Kmart should guarantee that it assesses its public presentation on regular footing so that it can heighten its public presentation in the tough and of all time altering concern environment.


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