Kmart: Striving for a Comeback
INTRODUCTION
Headquartered in Troy, Michigan, discount and variety retailer Kmart is among the worlds largest discount chains. For any given product, Kmart normally carries one or two national brands as well as several second tier brands and a few third tier brands. Kmart's well-known private label brands include Martha Stewart Everyday, Sesame Street, Route 66, Joe Boxer, and Jaclyn Smith.
As of 2003, Kmart had 212,000 employees at approximately 1,660 Kmart discount stores and super centers in 490 locations within the United States, Puerto Rico, The Virgin Islands, and Guam. The company also has a total of 17 distribution centers.
Kmart is the fourth largest general merchandise retailer in the world and the third largest discount retailer in the United States. The retailer is struggling with head on competition from Wal-Mart. Kmart is aware of the main problems associated with its loss of business to Wal-Mart; however, achieving a strong competitive position with Wal-Mart is difficult for Kmart due to several major problems that they are currently experiencing in areas such as housekeeping, inventory, and customer service.
Kmart's reorganization plan focuses on improving the company's weak competitive position and restoring financial solvency. If these goals are achieved Kmart will be in a better position to make significant improvements that would ultimately result in the company emerging out of bankruptcy. Attracting new customers to Kmart involves new strategies that they have put in place to help them to compete with Wal-Mart their number one competitor as well as Target and Kohl's their secondary competitors. The strategies are focused on merc ... |
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Starbucks
Starbucks started as a small business in 1971 when an English teacher Jerry Baldwin, a History teacher Zev Siegel, and writer Gordon Bowker opened Starbucks coffee, teas, and spice in Seattle, Washington's Pikes Place Market. Buying and changing the name of Il Giornale Coffee Company to Starbucks Corporation in 1987 Howard Schultz began to move Starbucks to a new level positing the company to a dominant retailer, roaster, and brand of specialty drinks. Schultz also added espresso beverages, cold coffee drinks, a line of food items to the menu and sells a line of compact discs, as well as coffee related accessories and equipment in its retail stores. Headquartered in Seattle and operating mainly in the United States, as of 2003 Schultz established over one thousand licensed locations of Starbucks retail stores in Canada, South America, Europe, Asian-Pacific, the Middle East, and Africa.
Starbucks also prides itself on making the company a great place to work. To maintain employee satisfaction Starbucks offers its staff, who are referred to as partners, competitive wages and an attractive benefits package including stock options. Although Starbucks was listed in Fortune Magazine in 1998, 1999, 2000, and 2002 as one of the "100 best companies to work," and Brandweek ranks Starbucks eighth on its "Super Brand Lists," and is named one of the "Ten most admired companies in America, Schultz see's many challenges ahead. Therefore, along with top management Schultz is planning his next strategic move for continued success.
1. In 2004 Starbucks main strategy for continued growth is to expand its foreign market. Top management believes it can grow revenues by 20 percent outside the United St...
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