Essay on Case Analysis : K Mart

1460 Words Apr 28th, 2015 6 Pages
The story of K-Mart began in 1897, when a man by the name of Sebastian Spering Kresge had the idea to open up a discount store in the heart of Detroit and form a partnership with a man by the name of John McCrory. This whole idea of offering goods and products to customers at discounted rates changed the ideas of retail in a way that was never seen before. It was two years after this partnership began, that it also ended in which Kresege took over, entitling these Detroit stores that were now spreading, S. S. Kresege Company. After years and years of growth, eventually making its way into Canada, in 1962 the first actual K-Mart opened in a surrounding city of Detroit. (Kmart Corporation History) As years went on, K-Mart eventually grew to become one of the second largest discount retail stores in the United States with sales equaling to about $37.03 billion in 2001 (Kmart Corporation History). However, there were some strategic decisions that K-Mart made as a company that eventually led to its downfall in 2002 when K-Mart filed for Chapter 11 bankruptcy protection. This became national news as indicated in the picture below, as K-Mart became one of the largest retailers in the United States to file for bankruptcy. (Miller 2002)
Business setting and specific decision
The overall competitive environmental setting that surrounded K-Mart and the specific decisions they made ultimately led to their downfall. Initially K-Mart set a strategic goal to sell…

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