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Case Analysis on Sears

Case Analysis on Sears. By: Jeffery T. Pelletier. Company Description. Retail giant: Employees 275,900 160,000 Investors Product lines: Appliances Sears Kenmore Brand name appliances Lawn and Garden Sears Craftsman Brand name lawnmowers and snow blowers Home electronics Tools

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Case Analysis on Sears

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  1. Case Analysis on Sears By: Jeffery T. Pelletier

  2. Company Description • Retail giant: • Employees 275,900 • 160,000 Investors • Product lines: • Appliances • Sears Kenmore Brand name appliances • Lawn and Garden • Sears Craftsman Brand name lawnmowers and snow blowers • Home electronics • Tools • Sears Craftsman Brand name tools

  3. Company Overview • Retail giant who is struggling with identity crisis. • Started as a mail order company in late 1800s • Merged with K-Mart • Problems causing company to fall behind: • Struggling in CRM • Struggling with supply chain management • Problem between company leaders over issues dealing with how business runs. • Spent millions of dollars to reposition themselves.

  4. Sears Contribution to Society • Started Sears American Dream Campaign: • Have raised nearly $100,000 to help people finance and afford homes. • Focus on home and family and the community.

  5. Sears Problems • CEOs blaming other CEOs of poor management. • Cause customers to shy away from doing business at Sears. • Not good for investors opinions.

  6. Sears Problems Continued • Poor CRM results in customers turning elsewhere • Poor Supply Chain Management resulted in miscalculated inventories and high shrinkage. • Big competition taking sales away: • Wal-Mart • Target • Home Depot • Lowes

  7. 2003 Profit Rank of Major Retailers

  8. How E-Business Relates to E-Marketing Strategies • Products available on line at www.sears.com • Establishing Extranet between all components of company to improve things like Inventory and customer information • Getting closer to customers with the national web site. • Improving CRM

  9. Value Bubble • Two Phases of Value Bubble used: • Engaging Phase • Retaining Phase

  10. Engaging Phase • Promotions • Huge Christmas Sales • Web Site improvements that allows customers to speed up search time: • JavaScript • CSS • Html

  11. Retaining Phase • Extended Warranties • Price Matching • Improved CRM

  12. Key Factors in Company Improvement • Required training of Sears employees • Placement of right employees at right times • Increase employee job satisfaction rates • Results of Company improvements: • Greater asset margins • Better investment opportunities • More revenue growth

  13. Conclusion • Will probably succeed because of storied past • Finally striving in right direction to compete • Improved CRM techniques and internal technologies results in company improvement. • Questions?????

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