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2.  A SWOT analysis of Kmart is important.
 It shows what this organization can do and what it
cannot.
 It also indicates the potential threats and
opportunities that it is facing.
 SWOT analysis can be defined as a tool that
organizations use to identify Strengths,
Weaknesses, Opportunities and Threats.
 Kmart is a discount chain department store
headquartered in the U.S.
 It is a Sears Holdings Corporation’s subsidiary and
it operates like a mass merchandising firm.
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3.  Strong management
 A strong brand name
 An established base of loyal customers
 Better customer service
 It is considered as one of the best brands among
other retailers
 Innovative and open to ideas
 It offers a wide range of products
 It offers better compensation to employees,
benefits and work satisfaction
 It offers buyers entertaining and unique shopping
experience
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4.  Capital raise to enhance faster expansion of this
store is restricted by its private ownership.
 Its prepared foods are highly priced.
 Its grocery stores are very large which implies that
customers do not get efficient services.
 Its financial position is overleveraged.
 Because of poor systems of chain supply, Kmart is
unable to compete with some retailers like Wal-
Mart.
 The brand was affected by the closure of some of
its stores.
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5.  Expansions abroad and emerging markets by
introducing services like healthcare and culinary
schools among others.
 Margins and brand to be enhanced by the growth
of a private label.
 Opportunity to cater for multi-ethnic groups in the
United States through the use of ethnic marketing
strategies.
 Target new segments of customers during Black
Fridays which offer lucrative sales.
 Increase its market presence by growing its stores
in the rural regions which has its low presence.
 Acquiring new labels and newer brands to improve
sales.
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6.  Economic slowdowns.
 Its profit margins which are already down can be
driven down further by price wars.
 Competition from its three key competitors, Wal-
Mart, Macy’s and Target.
 External changes by the government such as taxes
and policies.
 Inability to absorb increases in prices due to the
smaller scale versus national competitors.
 Declining profits might pressure the already weak
position of this store financially.
 The wallets of core shoppers can be affected by
economic downturn.
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