Sears: Vision of Grandeur – Case Study
Q1.List sears strengths and weaknesses. Then asses how well each of the proposed changes in Sears strategy will build on the strengths and work to eliminate the weaknesses?
Strengths of Sears
- Broad category of product offerings, i.e: hard side(hardware) and soft side (women apparel, children toys etc) of Sears
- Strong retail network system
- Colossal numbers of stores with huge capacities are present all over the country, both in and off malls.
- Owner of mix of brands i.e. : strong brands of hardware, namely, Kenmore & Craftsmen or even ethnic based brands , such as Russell Kemp for African Americans
- Merger of Sears with Land’s End, has given the company boost to address the shortcomings in their fashion image
Weaknesses of Sears
- Many layers of management, with hodgepodge bureaucracy
- Messy and uninviting interiors of the stores
- No proper display of products such as the women apparel
- Very less dressing/changing rooms and mirrors were present, which are a key factor in decision making of women to my clothes
- Decline in the market share of Sears to its competitors such as Wal-mart
- Sears is unaware of who its consumers really are?
- Sears is unaware where do they exactly stand in the market?
- Drop in the share price of Sears in 2004, after gaining an 83% decrease in net income
- S&P credit rating was dropped, so their credibility was also under question
- Inexperienced management
- Unrelated diversification – investment banking and financial advising
- The persistent image of “Hardware stores”, has been unable to be changed
Under the proposed changes, many of the strengths are being used to cater and eliminate the weakness of Sears. For being a flop in fashion department, they have merged with Land Ends. For having a consistent hardware store image, they have introduced the softer side, as in diversification in women’s apparel, although it was not a big success. To cater more ethnic customers, they are introducing their culture
Strengths of Sears
- Broad category of product offerings, i.e: hard side(hardware) and soft side (women apparel, children toys etc) of Sears
- Strong retail network system
- Colossal numbers of stores with huge capacities are present all over the country, both in and off malls.
- Owner of mix of brands i.e. : strong brands of hardware, namely, Kenmore & Craftsmen or even ethnic based brands , such as Russell Kemp for African Americans
- Merger of Sears with Land’s End, has given the company boost to address the shortcomings in their fashion image
Weaknesses of Sears
- Many layers of management, with hodgepodge bureaucracy
- Messy and uninviting interiors of the stores
- No proper display of products such as the women apparel
- Very less dressing/changing rooms and mirrors were present, which are a key factor in decision making of women to my clothes
- Decline in the market share of Sears to its competitors such as Wal-mart
- Sears is unaware of who its consumers really are?
- Sears is unaware where do they exactly stand in the market?
- Drop in the share price of Sears in 2004, after gaining an 83% decrease in net income
- S&P credit rating was dropped, so their credibility was also under question
- Inexperienced management
- Unrelated diversification – investment banking and financial advising
- The persistent image of “Hardware stores”, has been unable to be changed
Under the proposed changes, many of the strengths are being used to cater and eliminate the weakness of Sears. For being a flop in fashion department, they have merged with Land Ends. For having a consistent hardware store image, they have introduced the softer side, as in diversification in women’s apparel, although it was not a big success. To cater more ethnic customers, they are introducing their culture