Wal-Mart Case
Essay by JMontout • December 17, 2013 • Case Study • 363 Words (2 Pages) • 1,708 Views
SWAT ANALYSIS
Unable to compete with supersized company like Wal-Mart, Costco
Inability to maintain margin on low cost products
Along the threats we described above, we found also a number of legal issue facing the company. We believe that we should recognize and addressed them as we move to make a final decision on this acquisition. We will need to get a better understanding of the scope of these legal issues and what if any these issues will interfere with our plan.
Kmart management has tried in the past to drop its prices and offer low cost products just like our company. However their new strategy never could bring fruit as the competitors were doing the same,. Kmart need to develop new strategies to compete.,
Kmart image was also tarnished by some legal battles against some of its officer's former vice president). These officers were charged for security fraud, making false statement to the SEC. This degrading image can be presented as a solution for the company to change ownership and be open to our new proposal and acquisition. We also know about Martha Stewart fraudulent dealing with the company. For all these reasons we will present a real case.
We will propose Kmart a real change in strategy, a change in its marketing strategy. This would be a number one focus in our value proposition.
Kmart is one of the largest retail stores with strong financial statements and balance sheet. Kmart resurface from bankruptcy and gain back some grounds with the help of then CEO Julian Day. Julian had brought the Kmart to a viable state in the year 2000 and had improved the company profitability. Nowadays, Kmart has been downgraded due to the economic condition. Its financial statements have some weaknesses. Sales have been declining, and it cash has consequently suffered. At the end of 2012 Kmart operating cash flow was negative 295 million. Also in 2012 its cash flow from investing and financing are in the red. Cash flow from investing was a negative 309 in 2012, and a negative 28 million for its financing activities.
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