Not too long ago Sears was the largest retailer in the U.S. and Walmart was a sm

Question

Not too long ago Sears was the largest retailer in the U.S. and Walmart was a small company in Arkansas. Now Walmart is the largest retailer in the U.S. and Sears is in serious decline. What happened?

Compare and Contrast Sears and Walmart. How did their strategics (and strategy  implementation) go well in one company and not so well in another.

If you were named CEO of Sears tomorrow what, based on what you have learned about the two companies; in your Business program, strategy would you recommend to the Sears Board of Directors?

Explanation / Answer

Ans: There are various differences between Sears and Walmart, like:

a). Sears has stores located in mainly shopping malls, but walmart has a store located in the outskirt of city.

b). Sears was split iin retail and credit business and also diversified in different segments like hardware, battery and autoparts, but walmart never diversified.

c). Sears tried to target middle class female customers while walmart has positioned itself as only low cost provider of product.

d). Sears offered customers to pay through properitory credit card, while walmart customers has offer to pay though master card issued by Chase Manhattan bank.

The main strategy for walmart was lowest price supplier of products. Also the storesfor walmart were standalone outside city which gave customers an additional oppoetunity of shopping along with outing.

As a CEO I would recommend Sears to position itself as a household product provider to customers at doorstep. It should also start home delivery of products through online retail chains.

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