Kmart SWOT Analysis

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

Kmart is one of the leading brands in the lifestyle and retail sector. The article below lists the Kmart SWOT and includes its target market, segmentation, positioning & USP.

Let us start the SWOT Analysis below:

Kmart Strengths

The strengths of Kmart looks at the key internal factors of its business which gives it competitive advantage in the market and strengthens its position.

A list of strengths is mostly the starting point in a SWOT analysis. 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 it can improve. 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 prospects of future growth. 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 external factors which can negatively impact its business. 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

Hence this concludes the Kmart SWOT analysis.

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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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