walmart
...Mart is known as the low cost leader, and this is accomplished by superior operating efficiency. Target has successfully positioned itself as a premium discounter by leading with fashion. Kmart continues to search for its identity. Kmart is still operating under bankruptcy protection, but this situation will even further damage Kmart’s brand identity in the eyes of the consumer. III. Driving Forces Several forces are bringing about change in the way Kmart does business within the retail industry. The rapid growth of Walmart over that last 15-20 years has caused to Kmart to revamp its business model and focus more on aligning its resources to better deal with changes in customer demand and taste. Kmart has also attempted to mimic the Walmart business model by offering grocery products in many stores and with the creation of several Kmart Supercenters. Changes in consumers’ views of discount retailers have lead to the emergence of Target as a major player in the discount retail industry because its profile is more upscale than that of Kmart or Walmart. Globalization is beginning to play a large role in the growth of the retail industry. Walmart, for instance, now operates more than 1170 stores in a total of nine countries. The long-term growth of the retail industry will see Walmart continue to get larger while Kmart fights to emerge from bankruptcy and regain it’s share of the market from Target. The smaller retailers such as Kohl’s, Big Lots, and Value City are all experiencing growth as well. With Walmart’s omnipresence within the industry and Kmart’s bankruptcy filing, the entry of any new major firms should not play a large role as one of the forces driving the industry. Although, some are viewing the potential exit of Kmart from the market in the future as an opportunity for Target, Kohl’s, Big Lots, and Value City to increase market shares, respectively. IV. Competitive Position of Major Companies/Strategic Groups The financial situation of Kmart Corporation forced them to file Chapter 11 earlier this year, giving their competition an advantage. This March Kmart was forced to announce the closing of 284 stores nationwide, including 271 discount stores and 12 superstores that were not up to performance standards. This past year they also reported a loss of $2.42 billion ($4.89 per share), versus a loss of $244 million for the previous year. The decrease in total sales was due to fewer transactions because of reduced promotional activity, increased competition in the retail industry, and the effect of clearance sales of discontinued merchandise over the past year. Corporations such as Walmart and Target continue to d...