Industry Analysis Report on Kmart Essay

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Industry Analysis Report on Kmart


Kmart is a huge vintage company that had peeked at one time and now is struggling to survive due to competition and other legal battles. This analysis report will describe and analyze the major forces that shape the structure and competitive intensity of Kmart. This report will look at Kmart’s history, competitors, marketing strategies, and some legal battles that have affected the company. The shaping and structuring of Kmart started more than one hundred years ago.


Over a century ago, Sebastian Spering Kresge opened a small store in
Detroit, Michigan and tainted the entire setting of retailing. He built this store not intending that his store would develop into an
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Target is also a fearsome competitor, offering fashionable items at reasonable, but not the lowest prices.

Competition is not the only source of Kmart's consistent poor performance. Another reason is that Kmart’s never had a marketing strategy. Kmart needs a structure to guide its decisions in pursuit of performance objectives.


In the past, Kmart depended on the focus of expanding into rural areas where other retailers did not go. They should have focused on just being in the market, as well as protecting its geographic advantages.
Nevertheless, the company continued to open new stores and bought several specialty chains, including sporting goods, office supplies, and bookstores. While buying all these specialty chains, conditions at their existing locations declined in cleanliness, service quality, and the selection of merchandise all became problems.

The marketing strategies Kmart made in an attempt to recapture market share in the 1990s proved to be unrelated and secluded events. Their first strategy consisted of converting all Kmart stores to the "Big
Kmart". Big Kmart’s format was larger, brighter, and the stores had more categories of merchandise. Kmart also decided to sign an exclusive deal to distribute Martha Stewart's line of products, bed and bath fashions and house paints created by Martha Stewart, the famous home and garden
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