Target V K-Mart Mini Case Study Analysis Essay
Development and Analysis of Two Mini Case Studies
April 21, 2013
BUSN412 – Business Policy
The purpose of this paper is to perform an analysis on Target and K-Mart. By doing this analysis we will find out what each company does well, where the failures are and what they can do to keep the company alive and profitable. We will begin by looking at Target as a whole and then identify a successful business strategy and show how that strategy has moved Target into one of the leaders of the industry. We will then look at K-Mart as a company and then move on to identifying a failed business strategy and show how that strategy is holding K-Mart back within the industry. We will than …show more content…
More than one hundred years ago, Sebastian Spering Kresge opened a modest five-and-dime store in downtown Detroit which ended up changing the landscape of retailing. “The store that Kresge built has evolved into an empire of more than 1,500 stores and an Internet presence that reaches millions of customers. The Kmart name has become a symbol of Americana, standing for quality products at low prices” (Sears Holdings Corporation). “Attention Kmart shoppers: Kmart is the #3 discount retailer in the US, behind Wal-Mart and Target. It sells name-brand and private-label goods (including its Joe Boxer and Jaclyn Smith labels), mostly to low- and mid-income families. It runs about 1,300 off-mall stores (including 30 Supercenters) in 49 US states, Puerto Rico, Guam, and the US Virgin Islands. About 270 Kmart stores sell home appliances (including Sears' Kenmore brand) and some 980 locations house in-store pharmacies. Poor sales have forced its parent, Sears Holdings Corp., to close 100 to 120 Kmart and sister subsidiary Sears, Roebuck stores. Kmart also operates the kmart.com website, which includes merchandise from Sears” (Hoovers).
The most current sales figures for Sears Holdings are very dismal in the big scheme of things. The earnings for 2012 were $41.5M, with a profit of -$3.1M. These numbers are 4.1% less than what they earned in 2010. In light of the steady decrease the company