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Capstone Project Essay
Capstone Project Assignment
Do an S.W.O.T analysis of Kmart before its bankruptcy.
Strength- It was a pre-existing retail store hence had an advantage of corporate backing and experience more than Wal-Mart.
Weakness-Weak management, wrong IT solutions, wrong marketing decisions (positioning), Lacked proper inventory management, staffing problems
Opportunities- A large market to explore, Availability of willing suppliers, Ability to grow while adopting new technologies
Threats- Target and Wal-Mart
Why did it not just close unprofitable stores? What did bankruptcy allow Kmart to do that it could not do otherwise?
It could not close unprofitable stores because it counted on them make sales during the summer of 2001 so that it could pay its suppliers. Due to bankruptcy, Kmart was able to count its losses, pay its bosses, and make for the hills without paying its loans or credits from its suppliers.
Why was it not able to fix its supply, inventory, and IT problems?
It lacked the needed communicate on technology that could link its inventory with detections of out of stock products. On acquisition of new IT products, it made wrong choices on the type of technology it needed i.e. technology that could keep in touch with what was sold, what was replenished and keep the inventory costs down. They ordered unnecessary expensive technologies such as self-service points of sale.
Why was it not able to fix its marketing, productivity and personnel problems?
They targeted urban centers where there was stiff competition from Target. It was unable to find its niche, in that it tried to work on several strategies which failed hence did not find a proper ............GET AN AFFORDABLE PLAGIARISM FREE COPY