Transcript Case study of Sears

Case Analysis on Sears
By: Jeffery T. Pelletier
Company Description
Retail giant:
 Employees 275,900
 160,000 Investors
 Product lines:
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Appliances
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Lawn and Garden
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Sears Kenmore Brand name appliances
Sears Craftsman Brand name lawnmowers and snow blowers
Home electronics
Tools
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Sears Craftsman Brand name tools
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:
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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.
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.
Sears Problems

CEOs blaming other CEOs of poor
management.
 Cause
customers to shy away from doing
business at Sears.
 Not good for investors opinions.
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:
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Wal-Mart
 Target
 Home Depot
 Lowes
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2003 Profit Rank of Major Retailers
30
25
20
15
10
5
0
Wal-Mart
Target
Sears
K-mart
How E-Business Relates to EMarketing 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.
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 Improving
CRM
Value Bubble
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Two Phases of Value Bubble used:
 Engaging
Phase
 Retaining Phase
Engaging Phase
Promotions
 Huge Christmas Sales
 Web Site improvements that allows
customers to speed up search time:
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 JavaScript
 CSS
 Html
Retaining Phase
Extended Warranties
 Price Matching
 Improved CRM
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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:
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 Greater
asset margins
 Better investment opportunities
 More revenue growth
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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