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Paper Topic:

Case Study Question and Answer

What were the significant factors that lead to the bankruptcy

It is unavoidable that Walmart , Target and Kmart will be compared since they are the leading discount stores . As a result of comparisons , the major complains against Kmart are the following : they have unclean stores , the stocks of products available are not enough to meet the needs of the consumers , and lastly , costumers have to wait in long queues when transacting . They also have poor inventory management . The stocks and goods that are available are not what consumers were looking for . Expansion

into specialty stores was also seen as a big mistake for Kmart . Due to the large number and kinds of goods being offered , which were not easily moved into the market , Kmart 's goods lay unsold in their stock rooms and suppliers are not paid on time . Quality customer service was also not provided due to a lack of focus on updating and upgrading of its IT services . This would have helped a lot to reduce the long lines for transactions with customers , updating inventory items communication with suppliers and other chain of the stores , as well as forecasting sales trends , and reduce the work of the employees to focus more on customer satisfaction . It was reported that the business ethics of many of its senior executive officers were not sound , taking personal cuts off the store

What actions did Kmart take to prevent the problems ? Why didn 't they work

Kmart is popular for having a wide range of products offered in their stores . However , they wanted to broaden the merchandise that they offer in their stores in to reach out more to their customers . Thus they decided to diversify their product offerings via well-known retail chains and brand names . Examples of this are Builders Square , Walden Books and of course , Martha Stewart . Their private labels such as Sesame Street , Jaclyn Smith , Route 66 , White Westinghouse , were also popular choices for customers . The suppliers for these brands were quite happy and content with their working relationship with Kmart since they were able to reach more consumers due to the strategically located Kmart stores in urban areas . Opening of new stores and enlargement and overhauling of existing ones was another step that they took . In 1990 Kmart initiated a five-year plan that started with opening of new stores and enlargement and modernization of existing ones . Aside from the US and Canadian stores , they also expanded to Europe with stores in the Czech Republic and Slovakia . They opened Super Centers with a one stop-shop-grocery deal . Some of the Kmart stores were renamed as Big Kmart , referring to the move to focus on the Children 's Department and the Home Fashion Department , as well as moving the frequently purchased consumable items toward the front of the stores . The e-commerce company BlueLight .com also gave an increase in the company 's growth . Kmart products and services were available online any time . An unfortunate step taken was the closure of some...

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