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A SWOT analysis of Kmart is important.
It shows what this organization can do and what it
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.
A strong brand name
An established base of loyal customers
Better customer service
It is considered as one of the best brands among
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
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-
The brand was affected by the closure of some of
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
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
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
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