Kmart is a general merchandising company. The benefit that Kmart has is that it can cater to the basic needs of any human being. Kmart has a “blue light discount” specials strategy that can water the appetite of any customer by stimulating the essence of excitement, suspense, surprise and pleasure in a customer (Sptimes). The blue light special is a system which Kmart officials randomly get o the intercom and declare the famous slogan “attention Kmart shoppers” and shine a blue light in the department of the store where there is an extreme discount. This strategy is capable of impacting any nation or culture world wide because everyone loves discounts and good surprises.
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The merger benefited sears due to the fact that Kmart invested into many super centers and Kmart benefited greatly with sears due to the fact that sears invested a lot into technological niche. As a result of the merger, Kmart reported its first annual sales increase in 2005 since 2001(Funding Universe).
Kmart had a very good organizational culture. Customers loved the excitement that the business had to offer and employees were very happy to be at work. Culture is the environment that surrounds you all the time at the work place and Kmart had a culture that was equally matched with Target and Wal-Mart (About.com). It’s important that when a customer walks inside of a store, that the store gives them a perfect sense of comfort for their shopping experience. Due to bad leadership, Kmart has undergone some very bad lawsuits that were related to poor judgment and customer awareness. Bad customer service usually leads to a bad company image and that translates into lawsuits (in my opinion). The one thing that caused Kmart’s culture to suffer was its storehouse keeping. Kmart had such a hard time keeping up with assets and they lost a lot of easy money due to the mismanagement. Kmart would not be able to notice if a product sat on the shelf for many years without being touched by a customer. In business, you have to consistently hold tabs on your assets to replace what is not selling. With an inability to keep up with buyer preferences, you can’t understand your customer needs.
Strength & Weaknesses
Kmart has the ability to really take a lot out of its competition if they really started to focus more on their weaknesses instead of only adding juice to their strengths. Some weaknesses that really limits Kmart includes its supply chain management, poor leadership, bankruptcy, poor store house keeping, strategy execution, lack of consistent customer service, lack of up to date technology, and a lack of appealing to the youth. Kmart does have some good qualities that should in some ways provide some momentum for them to get back into the competition such as buy power, brand awareness, Big K-Mart (supercenters), alliance with sears (technology boost), and an opportunity to have international growth. If Kmart played their cards right, they could really come back strong.
It is clear that Kmart’s cultural environment is at was with itself. If you replace the leaders...