Greetings Classmates and Professor,
I remember as a kid my mom taking my brother and I to Kmart on a routine basis. Shopping for toys or clothes or whatever, it was regularly attended by the Meek Family. Same thing situation with Sears, I remember my parents taking us to Sears and wanting to do anything but watch my dad look at new shirts or boots. Ha-ha, neither of these stores can be found like they used to. Sears and Kmart were beaten out by stores like Walmart and Amazon. Sears holding Corporation controls both Kmart and Sears. They tried to merge but it was to late. There are currently only 6 Kmarts left in the United States and only . SHLD was the ticker symbol that hit the stock market on March 28th, 2005, now know as SHLDQ, Companies merged to try and increase revenue under one new corporation, Edward Lampert was Chairman at the time, stated this new enterprise will seek to leverage the combined strengths to creat greater long term value than either could have done alone. Today Sears Holding Corporation trades at .03 cents a share. Down nearly 88 percent over the past year. Why did both of the companies fail? Kmart filed for Bankruptcy in 2002, it had over 2000 Kmarts operating nationwide. 3 years later when Sears bought them, they had only 1400. I think they failed due to an already extensive market in . Walmart was going strong, Target was on the rise. Both stores, Sears and Kmart, had to compete with newer, cleaner more specialized stores, not just Walmarts and Targets, but Home Depot, Lowes, Amazon. Walmart had a strategy, they wanted their customers to see their low prices. Kmart focused on buying real estate and putting stores up wherever they could. Walmart had less stores than Kmart did when Kmart filed for Bankruptcy, Kmart had no strategy, and Sears buying them did not help either company.
Forum Post 2:
The material this week was a little bit harder to understand than the previous. Once a company goes global, some of the terms become very definitive. For this week I will talk about the four strategies a company chooses when going international and give an example of a company and their choice. These strategies are global, multi-domestic, international, and transnational.
First, global strategy is more concentrated on developing a brand or standard products for their company. This would involve little to no change in their product regardless of their location in the world. A good example could be Apple, where their phones and computers are essentially the same all over the world. Next, multi-domestic is a strategy that develops their standard products but will also create unique products that are tailored to the country of operation. This could be many of the that sell specific meal options in different countries.
The next strategy is being international. This focuses on licenses, importing, and exporting items made specifically in a central location, concentrating on the country of origin products. Lastly, transnational strategy is a unique one. This will use a combination of global and multi-domestic strategies together to succeed. It also has a central location of the business in the home country, but also multiple operations around the world.
An example of a company that expanded is Nestle, where it operates around the world selling standard products, but also unique ones. I believe that nestle uses a transnational strategy. This can be an effective way to operate a business around the world. It allows for the ability to maintain your original products and provides unique ones depending on the culture and location. With that, I will go have some Nestle hot chocolate.
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