Sears And Information Technology

30 Pages 7548 Words

its service subsidiaries and refocused on its retailing operations. The results seemed to suggest that, in the short run, the retailer would be able to regain its position.
Sears is now entering the 21st century and is nowhere near regaining the position of #1 retailer in America. In fact, it has now slipped to #3, behind Wal Mart and Krogers. In 1999, Sears’ total revenues were less than one quarter those of Wal Mart. Sears’ strategy of being all things to all people failed with the advent of specialty stores that were better able to cater to changing consumer tastes. All department stores were at a great disadvantage because they had a different set of competitors for every department they operated.
The future does not seem very promising, especially with the threat of new global competition. Sears may not survive to see the next century much less regain its place as the #1 retailer unless drastic changes are implemented. How can Sears reclaim its position?
LITERATURE REVIEW
What happened to Sears is not that uncommon. History has been witness to the rise and fall of many great empires. Most businesses go bankrupt on the way up, not on the way down. Why did Sears fail to remain the top retailer? Two reasons were:(1) a lack of focus on operating strategies and, (2) a lack of long-term vision from top management. The retail industry is very competitive and requires a flexible management team able to adapt and adjust to changes in competition and changes in consumer tastes. All players must be willing to differentiate themselves from their competitors.
This literature review will discuss many of Sears’ characteristics. A SWOT analysis will be conducted in order to form a foundation on which to build new strategies for future growth. Before Sears can implement a new strategy, it needs to reassess itself. What are its strengths, weaknesses, opportunities and threats from which it can build upon?
Sears has tw...