Kmart and Sears Marketing :: Business Analysis

A foc customd cost leadership strategy would be appropriate, in other words, a attention to consumers. Cost focus is a strategy that will focus on a particular buyer groups or a geographic market and attempt to serve altogether that place, to the censure of others. When looking at cost factors, there are very few options available to K-Mart in developing a pricing strategy to compete with posterior or Wal-Mart. Therefore, K-Mart would not have many price strategy options available. However by using a cost focus strategy, and matching the quality of sanitary known brands but keeping cost low by eliminating advertising and promotional expenses will save K-Mart money. Should Kmart and Sears keep their own identities and have unique warring strategies, or should they be combined in some way with a new over all(prenominal) corporate competitive strategy? Please defend your answer.The cite issues for K-Mart strategies are finding the right cost level for an opportunity to be aggressiv e, and differentiating the production for consumer in terms of different consumer and different intangible product attributes. K-Mart and Sears should be combined with a new overall corporate competitive strategy using a cost focus. This may turn out to be the only sensible strategy, and the one which best describes the strategy adopted. Strategies of cost leadership and product differentiation are often described as if they were mutually exclusive you good deal either pursue one or the other, but not both. You can either minimize cost or you can aim for the highest quality of product and customize according to the requirements of the market place. Some products are by their nature standardized. However it is impossible to differentiate the product in the mind of consumer. This tends to put all the emphasis on cost and therefore on prices. There is no point in the consumer paying extra for the same products. However by K-mart and Sears should use strategies like changing the locat ion of stores in a more appealing destination. Both would need development of new name brand products, ones that would be commence cost and a higher quality for customers. Question 2Read the short Kmart case study on pages 161-162 carefully and answer the following questionsWhat melodic phrase competitive strategies were used by each of Kmarts major competitors? Wal-Mart follows a lower cost competitive strategy and cost leadership. For Wal-Mart, strategic thinking is the help of continuously redefining its objectives. Competitive advantage over its competitors both actual and potential and management of risk to levels regarded as acceptable by the corporations main(prenominal) stakeholders.