Industry Analysis Report on Kmart Essay -- Business and Management Stu

Industry Analysis Report on Kmart INTRODUCTION Kmart is a huge vintage company that had peeked at one time and now is struggling to survive due to competition and other legal battles. This analysis report will describe and analyze the major forces that shape the structure and competitive intensity of Kmart. This report will look at Kmart’s history, competitors, marketing strategies, and some legal battles that have affected the company. The shaping and structuring of Kmart started more than one hundred years ago. HISTORY Over a century ago, Sebastian Spering Kresge opened a small store in Detroit, Michigan and tainted the entire setting of retailing. He built this store not intending that his store would develop into an empire of more than twenty one hundred stores and an Internet presence that reaches millions of customers everyday. The S.S. Kresge Company founded in 1899, opened its first Kmart discount store in 1962. By the next year, Kmart had opened 53 stores, on the verge of being the number one retailer. In the 1970s, Kresge began opening smaller 40,000 square foot stores in smaller towns and switched from brand name to private label goods manufactured internationally at low cost. Over the years, Kmart hurt its own development efforts by diversification into specialty retailing, which brought it close to bankruptcy. In the 1990’s, the company had to sell off its Sports Authority, Borders, Office Max and Builders Square chains. A decade later in the twentieth century Charles Conaway replaces Floyd Hall as chairman and CEO. About a year after the new chairman and CEO joins Kmart, the corporation bought BlueLight.com Internet service and soon there after Kmart Corporation files for Chapter 11 bankruptcy protection due to stiff competition, corrupt leadership, and bad financial planning. COMPETITORS Kmart filed for bankruptcy protection, once the largest retailer ever to do so in U.S. history. Most industry analysts believe the cause of the company's bankruptcy filing was due to stiff competition from WalMart, Target, and lack of marketing strategies. Besides, when WalMart and Target predictably entered into Kmart's territory, Kmart had given its customers every reason to go somewhere else. With more than 4,000 stores and insistent expansion plans, WalMart is a one of the strongest retail forces. Thei... ...les is still functioning. This analysis report described and analyzed the major forces that shape the structure and competitive intensity of Kmart. This report reviewed Kmart’s history, competitors, marketing strategies, and a few legal battles that have affected the company. Kmart needs to realize the need to developing a strong marketing strategy before they are forced to go out of business. REFRENCES Accela Communications Inc (2003). â€Å"BlueLight folding into Kmart, lays off staff.† http://www.itworld.com American City Business Journals, Inc. (2003) â€Å"Kmart reports $862M first quarter net loss.† http://www.albuquerque.bizjournals.com Fox News Network (2003). â€Å"Kmart Web Site Answers Angry Shareholder Questions.† http://www.foxnews.com InfoWorld Media Group (2001). †Benefits of a slowdown.† http://www.archive.inforworld.com Kmart Corporation (2000). â€Å"More Information about K-Mart.† http://www.kmartcorp.com Microsoft Corporation (2003) â€Å"Kmart’s 5 big blunders.† http://www.bcentral.com The Detroit News (2002) â€Å"A look at Kmart’s History.† http://www.detnews.com Where It’s @ (2002). â€Å"Kmart-Running Out of Time.† http://www.retailindustry.about.com Industry Analysis Report on Kmart Essay -- Business and Management Stu Industry Analysis Report on Kmart INTRODUCTION Kmart is a huge vintage company that had peeked at one time and now is struggling to survive due to competition and other legal battles. This analysis report will describe and analyze the major forces that shape the structure and competitive intensity of Kmart. This report will look at Kmart’s history, competitors, marketing strategies, and some legal battles that have affected the company. The shaping and structuring of Kmart started more than one hundred years ago. HISTORY Over a century ago, Sebastian Spering Kresge opened a small store in Detroit, Michigan and tainted the entire setting of retailing. He built this store not intending that his store would develop into an empire of more than twenty one hundred stores and an Internet presence that reaches millions of customers everyday. The S.S. Kresge Company founded in 1899, opened its first Kmart discount store in 1962. By the next year, Kmart had opened 53 stores, on the verge of being the number one retailer. In the 1970s, Kresge began opening smaller 40,000 square foot stores in smaller towns and switched from brand name to private label goods manufactured internationally at low cost. Over the years, Kmart hurt its own development efforts by diversification into specialty retailing, which brought it close to bankruptcy. In the 1990’s, the company had to sell off its Sports Authority, Borders, Office Max and Builders Square chains. A decade later in the twentieth century Charles Conaway replaces Floyd Hall as chairman and CEO. About a year after the new chairman and CEO joins Kmart, the corporation bought BlueLight.com Internet service and soon there after Kmart Corporation files for Chapter 11 bankruptcy protection due to stiff competition, corrupt leadership, and bad financial planning. COMPETITORS Kmart filed for bankruptcy protection, once the largest retailer ever to do so in U.S. history. Most industry analysts believe the cause of the company's bankruptcy filing was due to stiff competition from WalMart, Target, and lack of marketing strategies. Besides, when WalMart and Target predictably entered into Kmart's territory, Kmart had given its customers every reason to go somewhere else. With more than 4,000 stores and insistent expansion plans, WalMart is a one of the strongest retail forces. Thei... ...les is still functioning. This analysis report described and analyzed the major forces that shape the structure and competitive intensity of Kmart. This report reviewed Kmart’s history, competitors, marketing strategies, and a few legal battles that have affected the company. Kmart needs to realize the need to developing a strong marketing strategy before they are forced to go out of business. REFRENCES Accela Communications Inc (2003). â€Å"BlueLight folding into Kmart, lays off staff.† http://www.itworld.com American City Business Journals, Inc. (2003) â€Å"Kmart reports $862M first quarter net loss.† http://www.albuquerque.bizjournals.com Fox News Network (2003). â€Å"Kmart Web Site Answers Angry Shareholder Questions.† http://www.foxnews.com InfoWorld Media Group (2001). †Benefits of a slowdown.† http://www.archive.inforworld.com Kmart Corporation (2000). â€Å"More Information about K-Mart.† http://www.kmartcorp.com Microsoft Corporation (2003) â€Å"Kmart’s 5 big blunders.† http://www.bcentral.com The Detroit News (2002) â€Å"A look at Kmart’s History.† http://www.detnews.com Where It’s @ (2002). â€Å"Kmart-Running Out of Time.† http://www.retailindustry.about.com