This 7 page paper examines a case supplied by the student. K-Mart in the 1990’s is suffering declining sales. Competing against Wal-Mart K-Mart is suffering from a poor image and is struggling to find a competitive advantage. The paper examines K-Mart with a Porters Five Forces and SWOT analysis before suggesting an approach to develop a viable long term strategy. The bibliography cites 6 sources.
K-Mart Case Study United Kingdom, . To Use This Report Correctly, K-Mart is
a well known brand and the case study provided by the students shows a case where there was a broad strategy, but one that was only reactive and did not
seek to develop specific competitive advantages. K-mart starts it as a discount store where it is competing on price and with the centralization of purchasing and inventory control we may
argue there is the strategy of gaining economies of scale. The market matured over time and even in mature market there appears to be the continued pursuance of the same
polices, seeing prices as the main issue when there are drops in sales. There were changes, but these appeared to react and follow others and fail to innovate. To consider
the situation of K-mart we can use Porters Five Forces Model. The first problem that faced K-Mart may be threat of existing competition. When the format of K-Mart was
created the market was already seen as mature. However it was believed that even in a mature market there could be renewal. This may be justified as the goods that
were being sold were not single purchases, general purchases needed to be made many times. However, the market was becoming more competitive and customer were changing in their buying habits.
Wal-Mart was the main competitor and appeared to be gaining a high level of K-marts business and had managed to gain the cost advantage in the market and was also
differentiated. In terms of competing with Wal-Mart, Wal-Mart had a better image, with customers perceiving K-mart as a low cost store with the target market being low income. As