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Kmart: Fall of a Retailing Giant

            
 
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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Case Details:

Price:

Case Code : BSTR056 Electronic Format: Rs. 500;
Courier (within India):Rs. 25 Extra
Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

Themes

Retailing
Case Length : 16 Pages
Period : 2000 - 2003
Organization : Kmart
Pub Date : 2003
Teaching Note : Not Available
Countries : USA
Industry : Retailing

Abstract:

The case details the journey of US-based retailing company Kmart from being an integral, successful part of the country's corporate history to bankruptcy in 2002. The company's origins and its evolution into a retailing giant over the decades have been traced. The reasons for its poor performance vis-à-vis rivals Wal-Mart and Target have also been explored. The case takes a look at the restructuring moves taken during CEO Conaway's tenure and examines the reasons for the failure of the same. The case also takes a look at Kmart's reorganization plans and its efforts to emerge from bankruptcy during 2002-03. Finally, the case discusses Kmart's future prospects in light of its changed strategic game plan and the various problems that still persist.


Issues:

» Understand the major causes that contributed to the failure and bankruptcy of Kmart

» Appreciate how remote and operating environments impact a company's performance over a period of time if they are not factored into the strategic framework

» Understand how competition, operational efficiencies and positioning strategies can significantly alter market shares, leadership position and financial success

Contents:

  Page No.
Kmart Goes Bust 1
Background Note 2
Kmart Under Conaway 4
Towards Bankruptcy 6
The Reorganization Initiatives 7
Reorganization Roadblocks 8
Life Goes On - Kmart's Future Plans 9
Exhibits 11

Keywords:

US, retailing, Kmart, integral, successful, corporate history, bankruptcy, 2002, retailing giant, Wal-Mart, Target, restructuring, CEO, Conaway, Kmart, reorganization, bankruptcy, 2002-03, Kmart, strategic game

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