Kmart

            
            
             Kmart's internal strengths include their current CEO Julian Day and their current Restructuring plan. Connerly has demonstrated himself to be of great value to Kmart. He saved them from near bankruptcy in 2002. He also negotiated with leaseholders, vendors, and creditors not to force them into bankruptcy in spite of the junk bond rating they had received.
             Kmart's internal weaknesses include their inability to compete with Wal-Mart on price, their image, and inability to implement goals and strategies, their corporate culture, and the loss of consumer needs and wants. Kmart's image is so negative that 49% of Wal-Mart's customers indicated in a survey that they drive past Kmart to get to Wal-Mart. Kmart tried to start competing again with Wal-Mart on prices by spending $2 billion over two years to improve stores and supply chain management, but failing to market Kmart as a good place to shop. The reasons stated for perceiving Wal-Mart as better include perceptions that Wal-Mart's prices are cheaper and that their products are better both in quality and value.
             The external opportunities for Kmart are their private -label merchandise, which has improved in both quality and value. Overseas Expansion is another opportunity for all companies within the retail industry. Kmart needs to try and create partnerships with foreign retailers to break into those international markets. Although Kmart has recently pulled out of some global markets and ventures, they are still active in others. Also, when they get done with restructuring, they will more than likely have other opportunities for international opportunities.
             The external threats facing them include Wal-Mart's competitive pricing strategy. Wal-Mart will not be undersold; they will beat any price by 5%. Wal-Mart also has such strong supplier relations they are able to stronghold them into lower prices. .
             Porters Five Forces.
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             The Five Forces Model is used to determine the attractiveness of a firm and provides insight on whether or not it will be profitable.