Kmart SWOT Analysis, Competitors & USP

Published by MBA Skool Team, Last Updated: April 26, 2020

SWOT analysis of Kmart analyses the brand by its strengths, weaknesses, opportunities & threats. In Kmart SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like Kmart to benchmark its business & performance as compared to the competitors. Kmart is one of the leading brands in the lifestyle and retail sector.

The article below lists the Kmart SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Kmart SWOT Analysis:

SWOT Analysis of Kmart

For Kmart, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.

Kmart Strengths

The strengths of Kmart looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Kmart :

1. Exclusive Product lines like Joe Boxer, Route 66 etc.
2. Most stores being located in urban areas with concentrated populations
3. Special Lay away plan for people who want to pay in installments
4. Excellent customer service

5. Brand loyalty is high among the smaller customer base

6.Brand Equity is high due to early presence in the retail segment

7.Great quality in food and perishable articles

Kmart Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Kmart SWOT Analysis:

1.Overleveraged financial position, applied for chapter 11 bankruptcy
2.Inability to compete with walmart on price due to poor supply chain systems

3. Closure of stores affected brand


Kmart Opportunities

The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Kmart SWOT Analysis:

1. Emerging Markets and Expansions abroad
2. Private label growth to enhance brand & margins
3. Opportunity to cater to multi-ethnic groups in US with new ethnic marketing efforts

4. Expand services to culinary schools, healthcare, others

5. Target Corporation newer customer segments during lucrative Black Friday sales

6. Increase market presence through store growth in rural regions where it has a low presence

7. Acquisitions of newer brands and labels can improve sales

Kmart Threats

The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Kmart are as mentioned:

1.Economic slowdowns will shift customers to stores with cheaper offerings like walmart
2. Competition from three fronts: high-end (Whole Foods) and price competitive (Wal-Mart and Target Corporation) Increasing Market Share
3. Price wars can drive down already low profit margins

4. External changes (government, politics, taxes, etc)

5. Inability to absorb price increases due to smaller scale vs. national competitors

6. Economic downturn affecting core shoppers’ wallets

7. Declining profits can put pressure on already weak financial positions


Kmart Competitors

There are several brands in the market which are competing for the same set of customers. Below are the top 3 competitors of Kmart:

1.Walmart
2.Target Corporation
3.Macys

Hence this concludes the Kmart SWOT analysis.

Continue reading more about the brand/company.

About Kmart

Kmart Overview
Parent Company

Sears Holdings Corporation

Category

Discount Retail Store Chain

Sector

Lifestyle and Retail

Tagline/ Slogan

There's smart, then there's K-mart

USP

Promotional Pricing and Weekly Mailers

Kmart STP
Segmentation

Urban Market Segment

Target Corporation Group

Middle Class and Blue Collar customers

Positioning

Positioning on low price similar to Walmart

 

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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