Sears Holding Corp Essay

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Sears Holding Corp.

Kmart and Sears have been part of the retail industry of America for the last two centuries, and as of November, 2004, they will be continuing due to their merger as Sears Holding Corp. This paper will first look at the history of the two companies to see how they started and what each company set out to achieve. This section will also include why the two companies failed. Secondly, a SWOT analysis will be performed on the new company, Sears Holding Corp, to try to identify where it stands in the present. Finally, a hypothesis of how the new company is likely to be accepted by consumers and whether it is likely to succeed will be discussed.

Kmart History S.S. Kresge Co., the predecessor of Kmart, was
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In an effort to compete with its main competitor, Wal-Mart, it reduced all of its prices, while at the same time tried to become upscale by selling lines of Martha Stewart, Kathy Ireland and Jaclyn Smith. Consequently, Kmart failed to create a coherent brand image (wikipedia.org). In 2001 Kmart recorded its second loss for the quarter. From this point on Kmart’s stock price continued to decrease and its losses continued to rise. In January 2002 Kmart filed chapter 11 bankruptcy, but it was not beaten yet. In May of 2003 Kmart resurfaced as Kmart Holding Corporation (wikipedia.org).

But the new company has not been as successful as hoped. In recent years the company has made small changes but it has not been enough to sustain itself in the competitive industry. It lacks a good information technology infrastructure and as such has not been able to enhance its supply chain as technology has improved. It has also been unable to effectively use its size to take advantage of economies of scale and effective working relationships with its suppliers. Kmart is at the bottom of the discount retailers and needs a major revamp to get back to the successful company it had been.

Sears History Sears saw its beginnings back in 1886, when Richard Sears began R.W. Sears Watch Company in Minneapolis, MN. Sears hired a watch repairman in 1887, by the name of Alvah Roebuck. That same year the company name changed to Sears, Roebuck and

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