Premium Essay

Sears Case Study

In: Business and Management

Submitted By fabio23
Words 569
Pages 3
Retailing & Wholesale: Sears Case Study
Sears Ascension through Retail Strategy
Based on the principles of retail strategy, it is clear that Sears rose to power because it successfully met the needs and wants of a large amount of people. From its founding, Sears offered an incredible variety of products not available at other stores. Its unique position as the most comprehensive department store earned it a reputable title in the list of American department stores. Due to the lack of public interconnectivity and competition, Sears didn’t have to try too hard to impress its customers. On top of this, the Sears’ catalog order system served as a pretty effective predecessor to online shopping, as customers could place orders for products outside of the retail stores. Sears’ title as top dog was earned from the sheer amount of products it offered to customers, and the fact that there weren’t really any other stores that could match its product variety.

Fall of Sears
While the company was successful for quite some time, its failure to adjust and compete effectively led to its demise. Customers have many options when it comes to shopping in the modern market, Sears wasn’t quick enough on giving customers a reason to select its stores over those of competitors. On top of this, the store didn’t have a central theme to define its marketing strategy. This lack of a theme made it harder to compete against other stores, as customers didn’t really know what to expect when they went into a Sears store. The lack of corporate definition detracted from Sears’ stores, making the large variety of offered products seem mismatched and improperly priced.

Marketing Struggles and Corporate Strategy
The fact that Sears’s stores are repelling customers is a direct result of the chaotic method of corporate organization the company has employed. By pitting different product…...

Similar Documents

Premium Essay

Sears

...and a Marketing Review of Sears 1st submission Date Due in: April 19, 2012 Number of pages: 23 Word count :3,281 Table of Contents sEARS bUSINESS STRATEGY REVIEW i Executive Summary 2-3 introduction brief history and background of sears 4 mission & obJECTIVES II evaluation of sears existing mission and objectives 5-6 External analysis IIi Competitors 7 PEST 8-9 Five forces Analysis 10-11 Opportunities & Threats 11 InternaL aNALYSIS iV Strenghts & Weaknesses 12 Financial ratios analysis 13-14 Past and current strategies 15 Sears current strategic position v Sears current strategy Balance Scorecard 16-17 Porter’s Generic strategies 17 rEcommendations vi Objectives and strategic actions 19-21 Evaluation 22- 23 Conclusion 24-26 Bibliography Executive Summary Sears, once the leader of the retail industry, is now facing financial troubles and is relegated to the 10th position in the market (Store org, 2011). Even after the merger with K-Mart, the retail conditions have not seemed to improved, but in fact, Sears Holding’s financial reports continued to reflect loss. Investor confidence in Sears Holding and its SBUs has been consistently declining over the past few years, due to Sears’ poor performance. ......

Words: 11357 - Pages: 46

Free Essay

Case Study Case Study Case Study

...This case study is an excellent example of how different types of parties can be brought together in a large scale transaction and how the original energy of those early meetings can be lost over time. I imagine that when Anthony Athanas was purchasing those old piers back in the 1960s many, if not all, of his colleagues, friends, and family members told him that he was off his rocker. I’m sure Athanas was looking at this land as his family’s ticket to financial prosperity and somewhat of a legacy that he could leave to his descendants for years and years to come. One of the items I wish the case would have divulged is the amount of money that Athanas had invested in the properties. For me this information would have given an insight to his net worth and how much he had riding on this investment. I assume it was substantial given his actions later in the process. Twenty years later Athanas’ dreams came true and all those naysayers were more than likely green with envy. The amount of pride Athanas’ had in his investment at that moment had to have been insurmountable. Being approached by a big time real estate development company and their extremely wealthy client, Hyatt Corporation, must have made Athanas feel larger than life and made him feel like something he isn’t, which is a developer himself. The case doesn’t give much insight into whether Athanas had any representation or anyone consulting him throughout the process. From the beginning, I saw this as matchup...

Words: 1190 - Pages: 5

Premium Essay

Sears Marketing Case

...SEARS Targeting College Students Prepared For: MKT 360 – Marketing Analytics April 25, 2012 Table of Contents Section title Page Executive Summary 3 Introduction 5 Purpose of the Study 5 Sears: Trends in Sales 5 Competitors 7 Sears Consumer Segments 8 Purchasing Trends 11 Legal Issues 11 Social & Cultural Issues 12 Economic Trends 14 Technological Innovations 15 Research Objectives 17 Methodology 18 Data Analysis & Results 21 Profile of the Sample 21 Descriptive Results 23 Difference & Associative Analysis 33 Limitations 37 Conclusions & Recommendations 40 References 46 Appendix 49 List of Illustrations Figures Page Figure 1.0: Sears Brands 5 Figure 2.0: Respondent’s Gender 21 Figure 3.0: Past Six Months Mall Visits 22 Figure 4.0: Clothing Stores 23 Figure 5.0: Percent of Respondents that Purchased Fitness Equipment in the Past Two Years 24 Figure 6.0: Fitness Equipment Purchase Location 24 Figure 7.0: Most Popular Sears Brands 28 Figure 8.0: Incentives to Increase the Probability of Entering a Store 30 Figure 9.0: Social Media 31 Figure 10.0: Facebook Presence 32 Figure 11.0: Gender vs. Mall Visits 35 Tables Page Table 1.0: Respondent’s Age 22 Table 2.0: The Appeal of the Kardashian Kollection to Females 23 Table 3.0: Perception of Sears 25 Table 4.0: Cause Marketing......

Words: 13228 - Pages: 53

Free Essay

Sears Case Analysis

...1912. By 1927, the Kresge Company started opening locations that sold items for $1 or less. Ten years later, he opened a store in a shopping center in Kansas City, Missouri (Sears Holdings, History). In 1968, Kmart begin to air television commercials to entice shoppers to the stores. Harry B. Cunningham became president in 1959, and developed a new strategy for the organization. While Cunningham was president, Kmart opened their first discount department store in 1962 in Garden City, Michigan; that same year seventeen more stores were opened. In 1976, Kmart made history by opening 271 stores in one year. In 1977, the company changed its name to Kmart Corporation. In order to fully focus on discount merchandising, Kmart sold the remaining Kresge stores (Sears Holdings, History). In 1990, Kmart took on a new logo and a new plan. As part of the plan, Kmart opened the first Kmart Supercenter in Medina, Ohio in 1991. Kmart was totally redesigned in 1996 and became known as Big Kmart. In 1999, Kmart launched a Internet presence, BlueLight.com; it offered free internet services (Sears Holdings, History). In 2002, the company filed Chapter 11 in the US Bankruptcy Court. Julian Day was promoted to CEO in January of 2003. Under his leadership, the company emerged from the Chapter 11 reorganization process (Sears Holdings, History). Strategic Direction Mission Statement The mission statement is a very important element in the business model of an organization. It is......

Words: 7396 - Pages: 30

Premium Essay

Case Study

...Case Study 1 Are Workplace Romances Unethical A large percentage of married individuals first met in the workplace. A 2005 survey reveled that 58 percent of all employees have been in an office romance. Given the amount of time people spend at work, this isn’t terribly surprising. Yet office romances pose sensitive ethical issues for organizations and employees. What rights and responsibilities do organizations have to regulate the romantic lives of their employees? Take the case of former General Electric CEO Jack Welch and Suzy Wetlaufer. The two met while Wetlaufer was interviewing Welch for Harvard Business Review article, and Welch was still married. Once their relationship was out in the open, some accused Wetlaufer of being unethical for refusing to disclose the relationship while working on the article. She eventually left the journal. Other accused Welch of letting his personal life get in the way of the interest of GE and its shareholders. Some even blamed the scandal for a drop in GE stock. Welch and Wetlaufer didn’t even work for the same company. What about when two people work together in the same work unit? Chicago advertising firm, started dating Kevin, one of her account supervisors. Their innocent banter turned into going out for drinks, and then dinner, and soon they were dating. Kevin and Tasha’s bosses were in house competitors. The problem: Sometimes in meetings Kevin would make it seem that Tasha and Kevin were on the same......

Words: 786 - Pages: 4

Premium Essay

Case Study

...they become the ad. It’s a notion that disturbs some people, especially as Facebook continues to challenge social norms about privacy and use of personal data. Zuckerberg believes that these new, more personal forms of marketing are the only way advertisers can adapt to the increasingly social nature of the Internet. On average, users spend more than six and a half hours a month on Facebook, significantly more time than they spend on other major sites—mostly because they are so engrossed in communicating with their friends. DISCUSSION QUESTIONS 1. What are the privacy issues associated with Facebook ads? 2. How are Facebook ads different from that of its online rivals’ ads? 3. What are the challenges faced by Facebook ads? CASE 6-2* WENTWORTH INDUSTRIAL CLEANING SUPPLIES OVERVIEW Wentworth Industrial Cleaning Supplies (WICS), located in Lincoln, Nebraska, is experiencing a slowdown in growth; sales of all WICS products have leveled off far below the volume expected by management. Although total sales volume has increased for the industry, WICS’s share of this growth has not kept pace. J. Randall Griffith, vice president of marketing, has been directed to determine what factors are stunting growth and to institute a program that will facilitate further expansion. WICS is a division of Wentworth International, competing in the janitorial maintenance chemical market. According to trade association estimates, the total market is roughly $2.5 billion......

Words: 5869 - Pages: 24

Free Essay

Case Study

...NAOMI MAFENI PROF. DEMORANVILLE GOODYEAR TIRE AND RUBBER CASE THE MARKET The global tire industry is not highly saturated and is dominated by key players who have a substantial share of the market in every region worldwide. It is divided into two segments: the original equipment tires which are sold directly to automobile manufacturers and the replacement tire market which are sold to private car owners looking to replace old tires. Key players in the tire industry have retained majority market share in both industries despite the difference in consumer behavior and buyer specifications between each market. Some of these key players include: Michelin, Goodyear and Bridgestone which collectively account for about 60% of sales. About 30% of industry volume is dedicated to original equipment tires of which Goodyear is the market leader with 38% of that total market. Although a majority of tires sold are in the tire replacement industry, tire producers unable to gain a majority share in that market consider that end consumers may stay brand loyal to the original tire brand that came with their car at time of purchase. Price competition amongst tire manufactures in this market is tight and it also yields less margins than the tire replacement industry. The replacement tire industry accounts for about 70-75% of total tire industry sales and so it is crucial that tire manufacturers hold relevant market share in this market in order to stay competitive. Major players in the......

Words: 1109 - Pages: 5

Premium Essay

Goodyear Tire Case Study

...Case Study: Goodyear Tire Coree Cox MKTG 4354 4/9/15 The Problem Due to the growth of warehouse membership clubs and discount tire retail chains, the Goodyear brand has recorded a 3.2% decline in their market share for passenger car replacement tires in the U.S., as well as, a significant drop in their repurchased tire sales. The Answer Goodyear needs to rethink and restructure their distribution policy by creating a joint venture with the mass merchandiser, Sears. Goodyear should only consider including their Eagle brand in the new distribution arrangement with Sears; this also means that Goodyear should continue offering a wide variety of exclusive Goodyear brands in their own dealerships. Lastly, Goodyear should continue widening its promotional base into the European marketplace. The Rationale An estimated 2 million worn out Goodyear tires were replaced annually at 850 Sears Auto Centers across the United States; by creating a joint venture with Sears, Goodyear could address this issue. Because Goodyear market share is shrinking, having your brand in a mass merchandiser like Sears would help reverse this effect. By only stocking one of their brands in Sears, Goodyear could mitigate the risk of cannibalization with their own franchises. Goodyear is third in European market share, so by expanding their promotional base into popular European sporting events, they could compete more effectively with Michelin Group and Pirelli. Situational Analysis Goodyear...

Words: 2464 - Pages: 10

Free Essay

Case Study

...Confirming Pages bye80180_appB_539-654.qxd 11/19/09 9:17 AM Page 539 technology ventures - management dell’imprenditorialità e dell’innovazione Richard C. Dorf, Andrew J. Nelson, Roberto Vona Copyright © 2011 – The McGraw-Hill Companies srl A P P E N D I X B Cases 539 bye80180_appB_539-654.qxd 11/19/09 9:17 AM Page 540 Confirming Pages technology ventures - management dell’imprenditorialità e dell’innovazione Richard C. Dorf, Andrew J. Nelson, Roberto Vona Copyright © 2011 – The McGraw-Hill Companies srl 540 APPENDIX B Cases TREXEL We’ve never met a customer who wasn’t interested in our technology. —David Bernstein, CEO of Trexel David Bernstein hung up the phone with Alex d’Arbeloff, Trexel’s largest investor, and contemplated an upcoming Board of Directors meeting scheduled for June 25, 1998. The meeting was only 10 weeks away and Bernstein, Trexel’s president and chief executive officer, needed to present a coherent vision of the company’s new strategy. Bernstein believed that Trexel’s patented technology for manufacturing foamed plastics had the potential to revolutionize much of the worldwide plastics industry. His innovative process technology, known as MuCell, allowed the Woburn, Massachusetts company to produce foamed plastic utilizing 25% to 50% less material than traditional solid plastics without a significant decrease in the strength of the plastic. Bernstein believed the market for products produced via this...

Words: 51437 - Pages: 206

Free Essay

Case Study I: Sears, Roebuck and Co. vs. Wal-Mart Stores, Inc.

...Case Study I: Sears, Roebuck and Co. vs. Wal-Mart Stores, Inc. Chao Han Junliang Shi Zhongyi Hu 2/25/2015 Azusa Pacific University Case Study I: Sears, Roebuck and Co. vs. Wal-Mart Stores, Inc. Sears, Roebuck and Co. and Wal-Mart Stores, Inc. are the two big retail companies in U.S. Although Wal-Mart was acknowledged powerhouse of the U.S. retailing industry, Sears’ ROE exceeded Wal-Mart’s 2%, which can show that this firm was the true powerhouse. Therefore, Don Edwards, an analyst with a prestigious investment bank. He compared two financial performances of these two companies and he wanted to figure out which company performed better in different areas. Sears, Roebuck and Co. was founded in 1891. It started originally with a sole catalog business and then expanded into retail stores in 1924. Its stores were primarily located in shopping malls, including a large variety of merchandise. Sears has become the world’s largest retailer in terms of annual sales. By the early 1980s, Sears faced increased competition and declining market share. In 1992, The CEO of Sears, Arther C. Martinez has carried out three methods to improve profitability. The first was to cut costs. The second was to re-oriented the product mix in which the target audience was set to be middle-class female shoppers. The third was to offer customers more flexibility through the use of the company’s proprietary......

Words: 3654 - Pages: 15

Free Essay

Lands End Case Study

...Lands’ End Case Study Shawan M. Fisher, MPA Management Information Systems Texas Southern University Fall 2015 September 30, 2015 Discussion of Company In 1963, Gary Comer, an advertising copywriter with Young & Rubicam, decided to pursue his dream of opening his own business. With $30,000 of initial funding, Comer and his partners Robert Halperin, Richard Stearns and 2 of Stearns employees set out to open Lands’ End. The first store was located in Chicago IL. and initially offered sailing equipment. Comer was an avid sailor along with Richard Stearns who was also a sailor. The next year, Comer produced a mail order catalog entitled “The Racing Sailors Equipment Guide”, and began filling orders that came in to the company. In the spring of 1977, Lands End produced its first catalog containing apparel and other goods. That same year, sales reached $3.6 million. In 1978, the company introduced its first button-down Oxford shirt upon which the Lands’ End legacy would be built. Also in 1978, operations were moved from Chicago to Dodgeville, WI. Another significant shift in operations at the time was the introduction of fulfilling customers’ orders by telephone. Lands’ End set up its toll free 800- number ad staffed it with eager operators who were answering customers’ calls in less than 2-rings! With clothing offerings soaring, the company broke ground on an office building and a 33,000 square-foot warehouse in 1979. By 1980, Lands’......

Words: 3703 - Pages: 15

Free Essay

Case Study

...The Pitt Building Trumpington Street Cambridge CB2 1RP United Kingdom CAMBRIDGE UNIVERSITY PRESS The Edinburgh Building, Cambridge CB2 2RU, United Kingdom 40 West 20th Street, New York, NY 10011-4211, USA 10 Stamford Road, Oakleigh, Melbourne 3166, Australia © Cambridge University Press 1996 This book is in copyright. Subject to statutory exception and to the provisions of relevant collective licensing agreements, no reproduction of any part may take place without the written permission of Cambridge University Press. First published 1996 Third printing 1997 Printed in the United Kingdom at the University Press, Cambridge ISBN 0 521 49767 1 Self-Study Student`s Book ISBN 0 521 49766 3 Set of 2 cassettes Copyright The law allows a reader to make a single copy of part of a book for purposes of private study. It does not allow the copying of entire books or the making of multiple copies of extracts. Written permission for any such copying must always be obtained from the publisher in advance. iv Contents Acknowledgements iv Introduction 1 Practice Test 1 12 Practice Test 2 34 Practice Test 3 54 Practice Test 4 75 General Training Reading and Writing Modules Tapescripts Answer keys 94 107 130 Sample answer sheets 153 iii v Acknowledgements We would like to thank the staff and students of the following institutions for their assistance in trialling these materials: Wollongong English Language......

Words: 41994 - Pages: 168

Premium Essay

Urban Outfitters Case Study

...Urban Outfitters Case Study Part 4: Marketing a Business Shanita Provoid Strayer University Explain why Sears or Wal-mart cannot effectively create a trendy counterculture image. The reason Wal-Mart or Sears cannot effectively create a trendy counterculture image is because in the case of Wal-Mart it operates on a high volume low profit margin and the only way to do this is to be able to mass produce or have your products mass produced for you or at least buy in bulk, that very philosophy males it impossible to be either trendy to counterculture. Trendy counterculture is about be unique or different going against the norms of society. While Sears prices are higher they still sell massed produced items which they believe will appeal to the general population. To try too enter into a niche market and attempt to compete with a retailer like Urban Outfitters would be financially disastrous for either Sears or Walmart. Could the big box stores sell merchandise identical to Urban Outfitters? Explain your answer. I do not believe that the big box stores sell merchandise identical to Urban Outfitters because unlike other retailers Urban Outfitters has a history a unique shopping experience and targeting the counterculture, Urban Outfitters cater to the those who see them self on the forefront of fashion. Forward looking research is important; Urban Outfitters has people (fashion hunters) who prowl the products made but in a very small quantity. Urban......

Words: 596 - Pages: 3

Free Essay

Urban Outfitters Case Study

...Continuing Case Study: Marketing a Business Jason A. Knight August 21st, 2011 Professor A. Garabedian 1. Explain why Sears or Wal-mart cannot effectively create a trendy counterculture image. Urban Outfitters can be credited for successfully creating a trendy counterculture image. They have been able to do this by targeting specific markets in key areas and locations, offering exclusivity, and promoting a certain lifestyle. Sears and Wal-mart have both established themselves as being highly successful and profitable business chains. However, even though these large chains have established themselves as strong contenders in the retail market Sears and Wal-mart cannot effectively create a trendy counterculture image. Sears and Wal-mart lack the ability to offer exclusivity and the ability to target specific markets. Both chains are just simply too large. Even though there are Urban Outfitters locations worldwide they still manage to offer a very specific selection of items on a small scale to accommodate the social and socioeconomic demographics of the area in which they are located. You can find a sears or Wal-mart in virtually every state in the U.S. and find the exact same broad range of products. There is really no differentiation, nothing that sets the stores apart. Literally just anyone has the ability to shop in these places and offering such a broad range of products, including groceries, clothing, and electronics attracts a wider range of people. Sears......

Words: 1005 - Pages: 5

Free Essay

Sears

...CASE STUDY III FAIRHOLME Ignore the crowd. Fairholme Ignore the crowd. This presentation uses Sears Holdings Corporation (“Sears” or the “Company”) as a case study to illustrate Fairholme Capital Management’s investment strategy for the Fairholme Fund. In the pages that follow, we show Fairholme Fund shareholders why we “Ignore the crowd” with regard to our portfolio positions that are currently out of favor in the market. However, nothing in this presentation should be taken as a recommendation to anyone to buy, hold, or sell certain securities or any other investment mentioned herein. Our opinion of a company’s prospects should not be considered a guarantee of future events. Investors are reminded that there can be no assurance that past performance will continue, and that a mutual fund’s current and future portfolio holdings always are subject to risk. As with all mutual funds, investing in the Fairholme Fund involves risk including potential loss of principal. Opinions expressed are those of the author and/or Fairholme Capital Management, L.L.C. and should not be considered a forecast of future events, a guarantee of future results, nor investment advice. The Fairholme Fund’s holdings and sector weightings are subject to change. As of May 31, 2012, Sears securities comprised 10% of the Fairholme Fund’s total net assets. The Fairholme Fund’s portfolio holdings are generally disclosed as required by law or regulation on a quarterly basis through reports to......

Words: 2450 - Pages: 10