Task 1
Kmart Australia is one of discount stores owned by Wesfarmers as a result of acquisition from Coles Group. The division itself was formed in November 2007 and is currently recognized as one of the most profitable discount department stores in Australia. Its head office is located in Mulgrave, Victoria. There are total of 192 stores throughout Australia and New Zealand with approximately 31,000 team members. The number includes outsourcing offices in Hong Kong, China, Bangladesh and India.
Kmart Australia offers general merchandise and extensive range of home brand products at lowest prices possible to cater the needs of everyone. General merchandise includes home entertainment goods, camping and fishing goods, kitchenware, stationery, furniture, garden supplies, lighting, footwear, etc.
As stated by Kmart Australia website, the objective of the business is committed to “improve the lives of our customers by providing quality services, products and solutions that earn their trust and build lifetime relationships."
Task 2
Strength:
Strategic location (located in urban areas with concentrated populations)
Excellent customer service
Focused market segmentation in the retail sector (urban market segment)
High brand loyalty and customer base
Weakness:
Closure of stores will affect home brands
Bankruptcy declaration filed by the store in 2002 will still bring a huge impact on the brand image of Kmart stores.
Marketing strategy is not effectively implemented and thus result in low profit margins and lack of competitive advantage against rival stores such as Target, Big W, etc.
Opportunity:
Increasing market presence to rural or regional areas
Acquisition of new brands to improve sales
Increasing technology assistance can help improving the management of supply chain operation to become more efficient and effective.
Threat:
Economic turmoil or slowdown may affect sales of the company. Customers will shift to lower prices products.
Increasing competition between firms selling similar products (eq. Target, Big W, Walmart) and thus price wars and competitive market share.
Government regulations imposed in retail industry to tighten expansion strategy. Other factors include political and tax imposed on the company.
Analysis of Kmart using PEST:
Political – reduce usage of plastic bags to improve environmental sustainability. Laws or regulations imposed on retail companies to ease competition and provide customers with goods at reasonable prices.
Economical – Economic slowdown is still evident from increasing unemployment rate and declining consumer purchasing power. This will greatly affect Kmart operations as consumers will seek for lower prices products
THE SWOT KMART Kmart was the largest retail discount with competitors such as Wal-Mart continually increasing their profit, Kmart's market share has dwindled to 13% and continues to decline. Wal-Mart's early use of IT within the industry was a major factor to Wal-Mart rise about Kmart and the fall of this once mammoth retail chain. Wal-Mart was the first within the industry to operate on a large-scale format, operate a computerized inventory system, use bar codes and wireless scanners, allow electronic…
brick-and-mortar market, its website shows otherwise in the virtual market. The store has been very successful due its great prices as opposed to its competitors. However, when taking a look at the Home Dress’n X website, one can visibly see not much marketing there. Additionally, the website, as opposed to the store, is very dull and not enough diversity is shown. For instance, the store has a variety of merchandise, some brand names, and new trends. The merchandise are arranged according to sexes, sizes…
retail model. Soon after Sear’s management started experimenting with an “off-mall” concept called Sears Grand. Sears experiment was successful and management wanted to roll out the off-mall Sears Grand concept nationwide quickly and at the same time Kmart wanted to…
Management .4 The Kmart Corporation Debacle ..5 Long-Term and Short-Term Strategies .. 6 Financial Performance . 7 To Merge or Not to Merge ...7 Reasoning for the Merger .8 Pros and Cons for the Merger 9 Morale Issues 9 Managing International…
………………………………………………………………. 3 History of the Small Business failure ……………………………………. 3 Reason for the Failure …………………………………………………… 5 Analysis of Failure and Opinions ……………………………………….. 7 References ……………………………………………………………….. 9 Introduction “The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.” (Drucker) In small business, a company needs to always be evolving with the demands of the customer. If the business refuses to change their mindset…
Disney and Pixar have put out since: “WALL-E,” “Up,” and “Bolt.” Pixar has plans for twice-yearly films, unthinkable before the merger, and has certainly gained the expert advice from Disney when it comes to advertising, marketing plugs, and merchandising. When it comes to marketing to children, no one does it better than Disney. Even pre-merger cartoon “Cars” got the Disney treatment and remains a top seller in merchandising amongst 4 year old boys (just ask my nephew). irius/XM radio merger On…
customers. They could position the product as being re-useable or they could decrease the cost so it’s more affordable. By making it “the most affordable, innovative mouse trap” on the market, they could possibly gain some demand. The successful marketing mix of a company needs to consist of the four P’s: product, price, place, and promotion. Trap-Ease only currently has one product, their mouse trap. They could possibly create different versions to offer more…
its viable competitor, Ward, it viewed itself as having no competition ignored Kmart and Wal-Mart’s developments in the market. When the sales and profits increased tremendously from 1962 to 1973, Sears’s arrogance arises, as it viewed its only competitor is itself and its executives would tell each other. This caused Sears fell so far off the pace when Sears would not admit for the longest time that Wal-Mart and Kmart were its real competitors. Beware the Monument means that if the meaning of the…
what is E-Commerce Category, and what is the specific characteristics of E-Commerce. What is B2B Marketing, and how to use E-Commerce in B2B marketing. What are Key drivers of E-Commerce. Use Australian Company as a Example to allow us to learn more about B2B E-Commerce Finally, what is traditional Marketing Mix, and what is E-Commerce Marketing Mix, and what is difference between these two Marketing Mix.. Table Of Content General Overview of E-Commerce........…
INTERNATIONAL MARKET OF WAL-MART QUESTION Assignment 1: Challenges in international management Type: Individual Format: Essay (You are encouraged to use headings and/or sub-headings to separate the sections/cases of your essay.) Word limit: 2500 words (variation within 10% more or less is allowed) This activity is a platform to sharpen and demonstrate your knowledge and analytical skills in international business. It is designed to help you achieve the learning outcomes 1, 2 & 3.…