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A. EXECUTIVE SUMMARY
Purpose Statement:
The objective of this case is to discover solutions on how to bring Kmart back on track again and how to solve its bankruptcy.
Problem Statement:
1. Inadequate customer service
2. Poor competitive position
3. Too much turnover among top management
4. Inventory problems
Alternative Courses of Action:
1. Reconstruction of strategy
2. Improve image and appearance
3. Improve customer service
4. Increase frequency of customer visits
5. Improve store operations
Methods:
The method used in examining Kmart's problems is the Porter's Five Forces Model and SWOT analysis.
Recommendations:
I would recommend all the alternatives listed above.
Conclusion:
In reconstruction of strategy, Kmart will be able to survive its problem. By reconstructing its strategy, this will help improve its image, appearance and customer service.
B. METHODS OF ANALYSIS
Porter's Five Forces Model
Threat of New Entrants
The power of new market entrants is weak. The market is extremely easy to enter into, but it is hard to compete at the levels of economies of scale that the larger chains possess.
Bargaining Power of Buyers
The power of the buyers is strong. Retailers are at the mercy of the consumer's demand and preferences. Currently consumers find shopping to be a chore. The convenience of the general merch ...