Unpacking Kmart’s Business Strategy in the Retail Industry
Kmart is a retail chain that has been in business for over 100 years. Throughout its history, the company has faced numerous challenges, including bankruptcy and stiff competition from other companies in the retail industry. However, Kmart has managed to stay afloat by implementing various business strategies that have helped the company remain relevant and competitive in a constantly evolving industry.
The Beginnings of Kmart
Kmart was founded in 1899 by Sebastian Kresge under the name S.S. Kresge Corporation. It was not until 1962 that the name was changed to Kmart and became a discount store. The company quickly expanded across the country, with its low prices and huge selection of products becoming popular among consumers.
Kmart’s Focus on Cost Efficiency
One of the main strategies that Kmart has employed over the years is cost efficiency. The company has consistently focused on lowering its costs through various means such as reducing overheads, cutting back on operating expenses, and implementing efficient supply chains. Kmart has also been known to outsource some of its operations to minimize costs, including partnering with suppliers to provide private label products.
Brand Image and Customer Service
Kmart has long been known for its focus on customer service, though in recent years this has proven to be more challenging. Despite this, the company has still managed to maintain a positive brand image by focusing on transparency, acknowledging its mistakes, and striving to be more customer-centered. In addition, Kmart has invested heavily in mobile technology to make shopping easier and more convenient for customers.
Product Diversification and Innovation
Another critical strategy that Kmart has employed is product diversification and innovation. The company has consistently sought to explore new product categories and services. For instance, Kmart has diversified into the beauty and personal care sector, while also introducing unique products such as the Blender Bottle for sports hydration. This push towards innovation and diversification has helped the company to stay ahead of its competition.
Conclusion
While Kmart has faced significant challenges throughout its history, it has managed to stay competitive and relevant within the retail industry by employing various strategies. Cost efficiency, customer service, product diversification, and innovation have all been essential components of Kmart’s business strategy, allowing the company to maintain its position in a constantly evolving industry. As the retail industry continues to change, Kmart will need to continue adapting and innovating to remain successful.
