Potential Weakness and Threats a Company

This study explores the potential weakness and threats a company may incur as a result of misguided leadership and shows that without the proper vision and execution of that vision, retail giants like Kmart Corporation, can start crashing down. Data was derived from a number of sources and the findings show that a combination of poor management, as well as a lack of a proper strategy will affect a company's position in the market. Meanwhile, a company with superior customer service with the right direction and adaptation may have the opportunity to gain and maintain a competitive advantage.

Section I: Introduction to the Organization

In certain industries there are arrays of companies providing identical or nearly identical services. Therefore, customers have the ability to pick and choose whom they would like to do business with. Consequently, the customer has what is known as "the bargaining power of buyers." (Hill & Jones, 2010). According to Porter's Five Force model, buyers' power is how consumers show their effect on an industry. The effects of the buying power are what separate one company from its competitors. This power can have great impact on how companies perform and can affect a company's market position, which could cause a leading company who has the "competitive advantage" at one time, to lose that advantage; something which Kmart can attest to.

Competitive advantage is defined as "a greater profitability than the average profitability and the profit growth of other companies competing for the same set of customers." (Hill & Jones, 2010, p. 6). One of the main purposes in business is to be the leading organization and to hold the advantage over your competitors which means that you have a greater profit growth.

In the current, tough business climate where the economy is low, every company is looking to hold a competitive edge over another. At one time, Kmart held that, however, they are currently relegated to the "3rd discount retailer in the US, behind Wal-Mart and Target" (Kmart Corporation, 2013). A company can decline in sales through a number of things ranging from a lack of customer service to a lack of drive and a proper vision from management to the fact that the competition has moved closer, but one of the main reasons is the lack of customer service. Customer service is defined as "the ability of knowledgeable, capable, and enthusiastic employees to deliver products and services to their internal and external customers in a manner that satisfies identified and unidentified needs and ultimately results in positive word-of-mouth publicity and return business" (Lucas, 2009). Customers want to feel valued; they want to know that they will be treated with respect if they select your company as a service provider.

Corporate Name, Founding Date, and Founding Leaders

S. S. Kresge Company, which was later re-named Kmart in 1977, was founded by Sebastian Spering Kresge, and opened its doors for the first time in downtown Detroit, Michigan, in1899. When the store was originally open it was "a modest five-and-dime store" (Sears Holding Corporation, 2013), and in the first 15 years grew to become a powerhouse and change what was considered retail at that time. In that time frame Mr. Kresge was able to "expand to 85 different stores, with annual sales of more than $10 million" (Sears Holding Corporation, 2013).

Essential Events and Critical Incidents

In order to survive in the business world, companies must try to keep building their empire even though there will be times when that seems impossible. A couple of ways to be help your brand expand is through persevering through rough times like what Mr. Kresge was able to do when the war and financial depressions decimated America, and to be a trendsetter. Some of the most essential events and critical incidents relevant in Kmart history include the following:

* 1899-S.S. Kresge opened first Kmart store.

* 1912-Expanded to 85 stores.

* 1937- Kresge opened a store in the country's first suburban shopping center -- Country Club Plaza in Kansas City, Missouri.

* 1959- Harry B. Cunningham becomes Kresge President.

* 1962-Kmart first discount department store opened in Garden City, Michigan.

* 1966-Sales in 162 Kmart stores and 753 Kresge stores topped the $1 billion mark.

* 1976- S.S. Kresge opened 271 Kmart stores.

* 1977- S.S. Kresge Company officially changed its name to Kmart Corporation

* 1991-Kmart opened the first 24/7 Kmart Supercenter in Medina, Ohio.

* 2002-Kmart Corp. filed for bankruptcy.

* 2005-Merged with Sears.

Historical Products, Current Products/Services

When Mr. Sebastian Spering Kresge first opened his doors, it was a small store where consumers were able to receive the item in which they were seeking and excellent customer service. Currently Kmart has expanded from a store that only sold to one type of consumer. With the addition of Super K-mart, they are able to appeal to a variety of consumers, whether they were seeking clothing, electronics or groceries, or all three, it can all be purchased in one place.

Evolution to New Products

One way to keep a company flourishing and increasing its profit growth is to create successful partnerships. Kmart launched the "Martha Stewart Everyday line of housewares items as well as the Kathy Ireland Exclusive swimwear and bodywear collections and Jaclyn Smith signature collection