Wal-Mart VS Kmart

Walmart VS Kmart

 

Let’s begin with this question “what are the main factors that drive companies to succeed while others languish.” To answer this question, we have to take two companies compare between them and evaluate their strategies. In my opinion, I think any company that wants to compete with other companies and wins the war has to have a clear goals and strategies, but more important it should provide value for its customers.

 For example, the big discount stores which are Walmart and Kmart. One of them is growing and winning the war and the other is losing, of course you know who is wining without point on it. Even more, some people don’t know what the Kmart is. In the past, anyone knows Kmart. It was a successful company but what happen. Why Kmart lost the competition, even more, yesterday “Sears recently announced it will close its Shelby store in April, after more than 60 years in business in the county.”  According to Dr. Don Caudill, professor of marketing “While the reasons for the demise of Sears may be copious, complicated and uncertain, one of the most significant factors was a failure in market strategy,”    other reason might be true is the company failed to attractive customers spatially middle class. Also, one of the most reasons that Kmart lost the competition with Wal-Mart is Sears Holdings spent $215 million in measured media on Kmart last year, but Walmart had $622 million in measured media spending in 2011. On the other hand, Wal-Mart knows how they give value for their customers. Wal-Mart knows how to play on “always low price” for a big number of products such as food, prescriptions and electronics. They succeeded in convincing customers that they are always the cheaper than any company else in market. Also, the play well on the product VS service which means they avoid products that needs services such as furniture. Moreover, they use privet brand and exclusive offering and the management of urban locations.

In conclusion, I would like to say that Kmart is struggling to find its way to play. As Harry Cunningham, the founder of Kmart said “Sam Walton (the founder of Walmart) “not only copied our concepts, he strengthened them “    

 

Sources:

Leinwand, Paul, and Cesare Mainardi. "Advertising Age." HBR Blog Network. N.p., 15 Dec. 2010. Web. 23 Jan. 2014.

Tessnear, Matthew. "With Local Sears Closing, What's Kmart's Future?" Shelby Star Header Logo. N.p., 21 Feb. 2014. Web. 23 Jan. 2014.