...Case Study I: Sears, Roebuck and Co. vs. Wal-Mart Stores, Inc. Chao Han Junliang Shi Zhongyi Hu 2/25/2015 Azusa Pacific University Case Study I: Sears, Roebuck and Co. vs. Wal-Mart Stores, Inc. Sears, Roebuck and Co. and Wal-Mart Stores, Inc. are the two big retail companies in U.S. Although Wal-Mart was acknowledged powerhouse of the U.S. retailing industry, Sears’ ROE exceeded Wal-Mart’s 2%, which can show that this firm was the true powerhouse. Therefore, Don Edwards, an analyst with a prestigious investment bank. He compared two financial performances of these two companies and he wanted to figure out which company performed better in different areas. Sears, Roebuck and Co. was founded in 1891. It started originally with a sole catalog business and then expanded into retail stores in 1924. Its stores were primarily located in shopping malls, including a large variety of merchandise. Sears has become the world’s largest retailer in terms of annual sales. By the early 1980s, Sears faced increased competition and declining market share. In 1992, The CEO of Sears, Arther C. Martinez has carried out three methods to improve profitability. The first was to cut costs. The second was to re-oriented the product mix in which the target audience was set to be middle-class female shoppers. The third was to offer customers more flexibility through the use of the company’s proprietary credit...
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...Bryne Beck Dr. Moore Consumer Behavior 05/06/2016 Case 1-1 1. Where does IDEO get inspiration for its product designs? Answer: I believe IDEO gets their inspiration from Thomas Edison and their consumers. 2. What kind of value do you think successful products deliver to consumers? Answer: Successful products leads to a higher satisfaction to the consumer, which in return, produces a higher value for that product. 3. Why do you think having a product that simply works doesn’t always translate to consumer acceptance? Answer: Consumers have both physical and psychological needs. If a product works but is unpleasant to that consumer in anyway then they will never accept it. 4. What is the relative importance of the utilitarian versus the hedonic value of products, as suggested by the work of IDEO? Answer: The success for IDEO comes from the fact they understand that utility is not enough and is why the product development requires consumers experience. 5. Do you agree with Edison’s observation that “genius is 1% inspiration and 99% perspiration”? Explain your answer. Answer: People spend a tremendous amount of time solving problems and studying the issue. IDEO realizes they must first know their customer before actually solving any problems. Case 1-2 1. Examine further the “2011 Ranking of Top 100 Brands.” Classify these brands while considering the produce category or sector and the country of origin. Can you detect a pattern? For example, do you...
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...International Business Planning & Marketing MNM41 A Business Strategy Review and a Marketing Review of Sears 1st submission Date Due in: April 19, 2012 Number of pages: 23 Word count :3,281 Table of Contents sEARS bUSINESS STRATEGY REVIEW i Executive Summary 2-3 introduction brief history and background of sears 4 mission & obJECTIVES II evaluation of sears existing mission and objectives 5-6 External analysis IIi Competitors 7 PEST 8-9 Five forces Analysis 10-11 Opportunities & Threats 11 InternaL aNALYSIS iV Strenghts & Weaknesses 12 Financial ratios analysis 13-14 Past and current strategies 15 Sears current strategic position v Sears current strategy Balance Scorecard 16-17 Porter’s Generic strategies 17 rEcommendations vi Objectives and strategic actions 19-21 Evaluation 22- 23 Conclusion 24-26 Bibliography Executive Summary Sears, once the leader of the retail industry, is now facing financial troubles and is relegated to the 10th position in the market (Store org, 2011). Even after the merger with K-Mart, the retail conditions have not seemed to improved, but in fact, Sears Holding’s financial reports continued to reflect loss. Investor confidence in Sears Holding and its SBUs has been...
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...Integrated e-Marketing Plan: Developing an e-Marketing Plan for Competing in the Electronic Global Marketplace Prepared for [SEARS] By: [Maria Quinonez] Date: [October 29, 2014] Table of Contents Starting an e-business in the Electronic Global Marketplace: Completing an Integrated e-Marketing Plan 1 Executive Summary 3 Selection of the e-Business for the Project 4 Environmental Analysis of the Marketplace 6 Targeted Market Segmentation 8 Consideration of Placement Decisions 10 Consideration of Product Decisions 13 Considerations of Pricing Decisions 16 Analysis of Innovative Promotional Communication Tools 18 Implementation and Measurement of Strategic Goals 23 Conclusions and Recommendations 25 Appendices 26 Executive Summary Sears was founded in the 1800’s and it was one of America’s largest retailers at one point. However, competition, and evolution took place and left this company struggling to make profits. This forced Sears to come up with a new innovative idea and they created online website/sales. With that idea they needed an e-marketing plan, which is proposed below. Section I: Firm details- This section describes the company and its history. It specifies the success and its struggle, and where the company stands today. It explains the main reason for and e-marketing plan as well as why it would benefit from this plan. Section II: Environmental...
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...Marketing Communications | Syndicate assignment Case 1 Prius Launch: Harmony Installations 2011 Bronze | Media Innovation Case 2 Canon Eos Cameras: Photography beyond the still 2011 Silver | Consumer Electronics Case 3 Southwest Airlines: Grab your bag it’s on/ Bags fly free 2011 Gold | Transportation Case 4 Ocean Spray Cranberries: Straight from the Bog 2008 Gold | Renaissance 2011 Silver | Sustained Success Case 5 Sears: Don’t just go back. Arrive 2010 Gold | Retail¬ Case 1 Prius Launch: Harmony Installations 2011 Bronze | Media Innovation GET: Echo/Tech friendly minded people WHO: Are environmentally and technologically aware and enjoy innovation. TO: Think Prius is the car they should buy versus the car they want to own. See Prius as an Icon of progress. Encourage consumers to put a Prius in the mainstream consideration set. BY: Outlining that hybrid motoring is good for the environment, endorsing the idea of being proud to own a Prius. LIKE THIS: By highlighting the “harmony between man, nature and machine”. Happiness, Optimism, Pride, Imagination SUCCESS: Desired 20% increase in sales of Prius. Increase hybrid vehicle market share. Engage social media metrics. $4.5m in earned media desired through Solar flower installations/social media. Market/Commercial insight The reported market decline in the Automotive Industry for passenger cars has declined by 37% in FY2011. Financial modelling of passenger...
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...Wholesale: Sears Case Study Sears Ascension through Retail Strategy Based on the principles of retail strategy, it is clear that Sears rose to power because it successfully met the needs and wants of a large amount of people. From its founding, Sears offered an incredible variety of products not available at other stores. Its unique position as the most comprehensive department store earned it a reputable title in the list of American department stores. Due to the lack of public interconnectivity and competition, Sears didn’t have to try too hard to impress its customers. On top of this, the Sears’ catalog order system served as a pretty effective predecessor to online shopping, as customers could place orders for products outside of the retail stores. Sears’ title as top dog was earned from the sheer amount of products it offered to customers, and the fact that there weren’t really any other stores that could match its product variety. Fall of Sears While the company was successful for quite some time, its failure to adjust and compete effectively led to its demise. Customers have many options when it comes to shopping in the modern market, Sears wasn’t quick enough on giving customers a reason to select its stores over those of competitors. On top of this, the store didn’t have a central theme to define its marketing strategy. This lack of a theme made it harder to compete against other stores, as customers didn’t really know what to expect when they went into a Sears store...
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...Ben Sterling – MGMT642 Case Quiz -‐ Skil The portable power tools industry is set up with two wide customer bases, consumer level products and industrial level products. Originally there was a huge divide between the consumer and industrial markets, with separate products, separate distribution channels, and separate price points. With increasing quality, the lines were becoming more blurred, and more consumers were buying industrial level products, and vice versa. Consumers and Professionals alike were buying and saw a need for these power tools, and were more often able to get any option at any distribution house. The range of distribution houses was also vast, with as many as fifteen different channels of sales for the products. Mass merchandisers, discounters, hardware stores and home centers are the main suppliers of the consumer market, while specialty supply store, tool rental shops...
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...shopping platform that offers rewards). • Leading retailer in home appliances & tools, lawn & garden, fitness equipment, automotive repair & maintenance. • Nation’s largest provider of home services, with more than 13M service & installation calls made annually. Strengths &Opportunities: • Having Super Centers operate 24 hours a day that have a full-service grocery along with a merchandise selection of a discount store. • Sears Auto Centers operating in association with full-line stores • Offering its Sears collection through the use of sears.com website • Option of buying through a mobile app or online & picking up merchandise in one of the Full-line or Kmart stores. • Purchase leased operating facilities, as well as offers to sell owned, or assign leased, operating & non-operating properties. • Transforming into an integrated retail strategy. Strengths &Threats: • Selling Sears merchandise, parts & services to commercial customers through the business to business Sears Commercial Sales & Appliance Builder/Distributor businesses. • Sears Commercial sales providing appliances...
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...1912. By 1927, the Kresge Company started opening locations that sold items for $1 or less. Ten years later, he opened a store in a shopping center in Kansas City, Missouri (Sears Holdings, History). In 1968, Kmart begin to air television commercials to entice shoppers to the stores. Harry B. Cunningham became president in 1959, and developed a new strategy for the organization. While Cunningham was president, Kmart opened their first discount department store in 1962 in Garden City, Michigan; that same year seventeen more stores were opened. In 1976, Kmart made history by opening 271 stores in one year. In 1977, the company changed its name to Kmart Corporation. In order to fully focus on discount merchandising, Kmart sold the remaining Kresge stores (Sears Holdings, History). In 1990, Kmart took on a new logo and a new plan. As part of the plan, Kmart opened the first Kmart Supercenter in Medina, Ohio in 1991. Kmart was totally redesigned in 1996 and became known as Big Kmart. In 1999, Kmart launched a Internet presence, BlueLight.com; it offered free internet services (Sears Holdings, History). In 2002, the company filed Chapter 11 in the US Bankruptcy Court. Julian Day was promoted to CEO in January of 2003. Under his leadership, the company emerged from the Chapter 11 reorganization process (Sears Holdings, History). Strategic Direction Mission Statement The mission statement is a very important element in the business model of an organization. It is established...
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...SEARS Marketing Plan Executive Summary Sears Holding Corporation is the fourth largest retailer in the United States and Canada. Its subsidiaries include Sears, Roebuck and Co. as well as K-Mart. The closing of the merger between Sears and K-Mart took place on March 24, 2005. Sears has more than 4,000 retail stores across the United States, Canada, Puerto Rico, and Guam. Sears offers products and services through over 2,700 branded and affiliated stores. Sears operates 894 broad-line stores and 1,354 specialty stores. Sears’ broad-line stores are mall-based locations. The specialty stores include Sears Hometown Stores that are mostly independently owned, Sears Home Appliance Showrooms, Sears Hardware Stores, Sears Auto Centers, and The Great Indoor Stores (Community, n.d.). Sears is the leading retailer in home appliance, tools, lawn and garden, electronics, and automotive repair and maintenance. They are also the largest home service provider and answers over 11 million service calls a year (About, n.d.). Sears’ values are built upon customer service and the company is committed to quality service and products. Sears aims to build lifetime relationships and trust with its customers. The Company prides itself on having a diverse customer base and values the customer’s individualities. As stated on the corporate website “Everything we do starts and ends with the customer.” (Diversity, paragraph 3). Sears also holds expectations from their employees. The Company values...
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...I. Problem For Sears Holding Company (SHC) to come up with a business strategy that will address competition, culture, and synergy and create a distinct brand image and identity for the company, which will help them succeed in the long run. II. Subproblem For the two companies, Kmart Holding Corporation (“Kmart”) and Sears, Roebuck & Co. (“Sears”) to be able to act as one company and create value. III. Objectives 1. To create a brand image identity 2. To create a culture of success 3. To generate consumer loyalty 4. To appropriately position the company in the retailing business industry 5. To be able to address competition 6. To make SHC a profitable company in the long term 7. To build a broader customer base IV. Case Facts and Analysis The merger of Kmart and Sears in late 2004 occurred to gain competitive advantage over its competitors by combining strengths of Sears and Kmart for the long-term value for SHC. This merger will benefit both companies in an ever changing and competitive retail industry. SHC will be able to enter into new markets with its combined expertise of Kmart in discounter stores and Sears in department stores. This merger benefits both companies in different ways separately and to the new merged entity – SHC. Kmart will benefit from the planned cost sharing of several of Sears leading proprietary brands as well as present opportunities to capture significant revenue and cost synergies including merchandise and non-merchandise...
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...The Target Corporation: Strategic Analysis A Comprehensive Report By: Nick Gysberg Kelsey Lee Richard Cline Table of Contents: Target Analysis 3 Wal-Mart Analysis 18 Sears Holdings Analysis 27 Moderate Growth Strategy 39 International Strategy 42 Financial Data 43 Appendix 46 References 50 Strategic Profile The Target Corporation, founded by George Dayton, is now one of the top general merchandise retailers in the United States. The company’s mix of stylish products and everyday essentials at low prices give it a unique strategy; it is one of the only companies to simultaneously incorporate price leadership and differentiation as its strategic business model. Strong private label brands have allowed Target to capture high profit margins. The company also utilizes its large size to achieve economies of scale so as to better compete with merchandising giants such as Wal-Mart, one of Target’s main competitors. PESTL Analysis Political The ever changing international political situation affects both domestic and international firms. International trade policies, political movements and global events all affect the manner in which firms operate within the market. The general retail industry has greatly benefited from the liberalization of international...
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...Continuing Case Study 4 Marketing a Business Felicia Lee Introduction to Business BUS 100 May 30, 2011 Abstract Marketing is a process which a company draws potential consumers/customers’ interest towards its goods and services. This process involves activities such as research, promotion, selling and distribution. Urban Outfitters, Inc caters to the exclusivity, uniqueness, and distinctiveness of fashion to maintain their customer shopping experience entertaining, while Wal-Mart is considered a big box store. Obtaining an understanding “why” shopping is entertainment and therapeutic to consumers. Explain why Sears or Wal-Mart cannot effectively create a trendy counterculture image? Counterculture is a way of life and set of attitudes opposed to or at variance with the prevailing social norm (Oxford Dictionaries, April 2010). A creation of a counterculture by Wal-Mart or Sears might not succeed because of different reasons that play a huge role in the marketing techniques or tactics used by Urban Outfitters, Inc. Urban Outfitters, Inc. utilizes niche marketing and exclusivity as their main marketing technique or tactic while Wal-Mart and Sears are considered as large scale American department stores located throughout the United States. Unlike Wal-Mart and Sears, Urban Outfitters...
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...Urban Outfitters Continuing Case Study: Marketing a Business 1. Explain why Sears or Wall-mart cannot effectively create a trendy counterculture image. Sears and Wal-Mart do not solely devote time to the fashion business. They sell clothes because it is a necessity everyone has and to make money. That is their main goal. In doing so, they are like a high school teenager. They see a fashion trend in the magazine or in their case, big corporation see what the leading fashion industries are buying and follow suit. Then they mass produce that look, using cheap materials and most of the time the craftsmanship is poor. People interested in being trendy want to make a statement about who they are and are out and be different. The clothes sold at Sears and Wal-Mart is available to everyone and is not in any way unique. 2. Could the big box stores sell merchandise identical to Urban Outfitters? Explain your answer. Wal-Mart and Sears are unable to sell merchandise identical to Urban Outfitters because they mass produce there items and the clothes are often poorly made with low end quality material. They focus more on quantity instead of quality to meet the highest profitability. Urban Outfitters sell their merchandise for a higher price and sell a smaller amount of items to turn a profit; Sears and Wal-Mart must sell a significant amount more to make the same profitability. Also, Urban Outfitters makes sure they have the current trends, Sears and Wal-Mart stores are just...
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...interoffice memorandum Principles of MArketing BUSI 265 to: | Professor Fulbright | from: | katava davis | subject: | elf initiative case study | date: | February 25, 2014 | | | | | 1. What is the business need uncovered by Sears Toronto? Support your answer with facts from the case. The main business need in Sears Toronto is customer retention. The Elf initiative was launched to help increase the number of repeat customers that come into Sears. The case study stated that it was not enough to just satisfy customers because satisfaction doesn’t necessarily guarantee customer retention. By providing the customers with shopping experience that is tailored to their needs Sears hopes to be able to build he type of repeat customer base that Saks Fifth Avenue has. By addressing this issue half of issues at Sears would be solved because it cost more to get new customers than it does to retain customers. 2. Where did the “ELF” concept come from? Was this the first use of elves or personal shoppers? In not, how are personal shoppers used in other companies? The Elf concept came from the personal shopper idea. This concept had mostly been exclusive to high end retailers such as Bloomindales and Saks Fifth Avenue. Stores like Saks use personal shoppers in many ways. They have private sessions with wealthy clients who don’t want to shop with the average customers. The sales associates are also encouraged to be personal shoppers by walking the customers to their...
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