A Look at the Sears/Kmart Merger
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This paper discusses the Sears Kmart merger in 2006 and how the companies have faced revenue declines from that very first year. This paper begins with this premise and looks at the issues facing such a merger. It also analyzes the strengths and potential growth of such a possibility. It concludes that that the two major problems facing the merger are a declining of sales as well as a lack of a strong competitive position.
From the Paper:"Sears Kmart has a few strengths that they can leverage. One is that they own two of the most iconic brand names in retailing. There is instant brand recognition among consumers. Additionally, Sears Kmart has a good real estate situation. They typically have anchor positions at top malls, which can help to drive traffic. The company has many weaknesses however. Many stores are outdated in design, and simply do not meet the needs of today's consumer (Duprey, 2008). As a result, the company has suffered consistent year-over-year same store sales declines (Ibid). This has resulted in poor financial performance - declining revenues and declining profits. The firm's strong brands have lost some of their meaning to consumers as well - the company is stuck between being a discounter and a high end retailer. According to Michael Porter's generic strategies, this results in a company being unable to gain any competitive advantage, eventually resulting in its downfall (QuickMBA, 2007)."
Sample of Sources Used:
- Sears Holdings Co financial statements from MSN Moneycentral. Retrieved April 13, 2009 from http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=SHLD
- Sears Holdings Corp Form 10-K for 3/17/09. Retrieved April 13, 2009 from http://moneycentral.msn.com/investor/sec/filing.asp?Symbol=US%3aSHLD
- No author. (2007). Porter's Five Forces. QuickMBA.com Retrieved April 13, 2009 from http://www.quickmba.com/strategy/porter.shtml
- Duprey, Rich. (2008). No Future in Sight for Sears Holdings Fool.com. Retrieved April 13, 2009 from http://www.fool.com/investing/value/2008/08/28/no-future-in-sight-for-sears.aspx
- No author. (2007). Porter's Generic Strategies. QuickMBA.com. Retrieved April 13, 2009 from http://www.quickmba.com/strategy/generic.shtml
Cite this Case Study:
A Look at the Sears/Kmart Merger (2011, August 31) Retrieved February 28, 2015, from http://www.academon.com/case-study/a-look-at-the-sears-kmart-merger-148094/
"A Look at the Sears/Kmart Merger" 31 August 2011. Web. 28 February. 2015. <http://www.academon.com/case-study/a-look-at-the-sears-kmart-merger-148094/>