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Kmart And Sears Marketing Essay

890 words - 4 pages

A focused 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 only that place, to the exclusion of others. When looking at cost factors, there are very few options available to K-Mart in developing a pricing strategy to compete with Target 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 well known brands but keeping cost low by eliminating advertising and promotional expenses will save K-Mart money.

Should Kmart and Sears keep their own ...view middle of the document...

Both would need development of new name brand products, ones that would be lower cost and a higher quality for customers.

Question 2
Read the short Kmart case study on pages 161-162 carefully and answer the following questions:
What business competitive strategies were used by each of Kmart’s major competitors?
Wal-Mart follows a lower cost competitive strategy and cost leadership. For Wal-Mart, strategic thinking is the process 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 corporation’s main stakeholders. It anticipates wants before they are perceived and problems before they are apparent.
Both Target and Kohl’s used a differentiation strategy by differentiating itself in a different way. Target and Kohl’s uses a value of proposition, Target and Kohl’s are successful because it adapted a low-price, high quality experience in terms of its products and stores that is geared towards a young urban consumer. It is much less likely to be reversed by turbulence in the external environment than a cost advantage. Consumer taste and the structure of particular market segments are usually more stable than many of the variables which affect the immediate costs of production and the sale price of a product, including relative exchange rates. This is not always the case since there are products where fashions change quickly, but it is usually so. A cost leadership strategy can be pursued with greater ease and its main elements more easily imitated by others.

Please briefly explain these strategies.
Differentiation strategy requires the linking of products and their attributes with the consumer group...

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