SWOT Analysis of Kmart

Strengths in the SWOT analysis of Kmart

Excellent product lines – Kmart deals with great product lines like Adam Levine, Jaclyn Smith, Route 66, Joe Boxer, and Smart Sense. This is a great strength to the brand to get its visibility and increase its brand value.
Store location – Kmart’s store location is mostly situated in an urban area that has an intense population. This is an added strength to the company as it increases sales.
Layaway plans – For people who would desire to pay in installments, Kmart provides a layaway plan. This helps the brand to maintain its customer retention.
Good customer service – Kmart has excellent customer service in place. It addresses the demands of the customers and takes care to see that the customer demands are met.
High brand loyalty – Kmart’s brand loyalty is more amongst the smaller customer base and due to which it has gained a lot of visibility.
Excellent brand equity – As it has a long history in the retail segment, it has high brand equity that is a major strength for this brand.
Good quality products – Kmart provides good quality products to their customers. Its quality is seen in food and perishable products.
Awards and Recognition – The company has received a lot of awards and recognition that has increased its brand value.

Financial condition – Over the years Kmart has entered in too much debt, whereby the company has applied for chapter 11 bankruptcies. This is a great weakness for the brand as it tends to lose customers which eventually led to their business loss.
Poor supply chain – Kmart does not seem to have proper supply chain management in place. It has shown its inability to compete with other top supermarkets chains. This is, in fact, a great weakness to the company.
Closure of store – The company’s closure for some time has affected the brand a lot. This led to a huge downfall.
Poor marketing strategy – The marketing strategy is poorly designed and it has not exploited various avenues to reach the target market effectively.
Low price in Suburban stores – Kmart has placed low-profit margins in the suburban areas that affect its revenue stream.

Expanding its operations – The company sees a lot of opportunity across the world. This is an evergreen market and sees a lot of opportunities.
Private label – Due to the private label growth that the company has, it has enhanced its brand and margin.
Expanded service – The Company sees a lot of opportunities to provide services to catering sectors.
Mergers and acquisitions – Kmart’s mergers into new brands and labels do see a lot of operations in its business operations.
Product line enhancement – Enhancing the product line will provide a huge opportunity for the business as it will target the middle-class family.

Economic recession – Where there is an economic recession in the country, customers will shift their purchase to some other low offering stores. This is a threat to the Kmart business.
Segments of competition – The company faces stringent competition from three major domains like Whole Foods, Walmart, and Target Corporation. This is a threat to the company and they should exceptionally perform well to beat these competitors.
Government bodies – Any new regulations placed by the Government can affect the business of the company. The new regulations could be in taxes, politics etc.
Competition – Competition from other top players are increasing and this arises a need to develop a well-designed and a structured marketing strategy.