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Sears Swot

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Strengths * Sears is one of the top three merchandise retail companies in the United States. They currently are behind Wal-Mart and Target. * Sears has a very strong managerial capability that manages its wide range of retail outlets in USA and Canadian markets. (Sohail, 2011, para. 5) * Sears is currently the only company of the top three competitors that have stores located inside of malls. This allows them to seclude themselves from the competition. * Sears has its own brand name products such as Craftsman, Kenmore, and Diehard. * Sears will always have loyal customers who will forever buy their products based off of good past history. * Sears provides many ways for its customer to shop. Customers can shop via traditional stores, online, or by mobile devices. * Sears provides commerce services such as sell on Sears, supply with Sears, and advertise with Sears. * Sears has a reward points system for customers who possess their credit card. * Sears offers stock options to its employees at a discounted price. * Sears gives assistance in locating resources such as childcare providers, adoption services, colleges and elder care resources, as well as counseling in times of need to it employees. | Weaknesses * Co-location of other competitors such as Wal-Mart, and Target within shopping market plazas can deter shoppers from entering malls. * Sears is set in many of its ways like store layout, marketing, and overall appearance. They have yet to update their stores to make themselves more competitive in the retail world. * Sears Holdings has been continuously posting negative EBITDA and burning cash into operations, which has continued to deteriorate its liquidity position. (Cramer, 2014, para. 4) * Sears merging with Kmart and Roebuck and Co has caused Sears Holdings revenues to decline. * Sears lease operations are very poor due to their inability to lease out long-term leases to companies. Long-term leases can also reduce the company’s ability and flexibility to respond to changes in demographic or it ability to relocate without breaching its contract. * Sears lacks the ability to increase sales from same store sales that have been in a decline for seven consecutive years. * Sears inability to generate enough revenue has caused it to rely on selling real estate and other assets just to survive over the past few years. * Sears currently lacks the necessary leadership to pull it out of its prolonged situation. | Opportunities * Sears can compete with its competitors as well as the small retail stores by focusing specific age groups by offering name brand apparel in its stores. * Sears has the ability to open up stores in areas that are not will to allow companies like Wal-Mart to standup. * Sears have the ability to venture in to the foreign market arena. * Sears can use the internet to its advantage by exploiting social data to understand the trends and understand what the customers are discussing as the next hottest thing on the market. ("Why Sears Doesn't Have To Go Out Of Business - Forbes," 2013) * Sears can focus on keeping current with products, by updating its stores. * The ability to expand new business lines and portfolio of products and services. * Sears can venture into emerging market giving the company an opportunity to gain market share in other regions of the world. * Sears can increase their revenue by taking advantage of special sales events like Black Friday. * Sears can branch look into shelving some of its own merchandise like Craftsman into smaller retail stores to generate more revenue. | Threats * Competitors like Wal-Mart, and Sams Club are offering products at lower prices, which can translate into loss of customers. * Retailers like Home Depot, Lowes, and Best buy can pose a threat in the appliance, electronic, hardline goods and tools department since 48% of Sears’s holdings sales come from those particular goods. * Sears can suffer a decline in consumer demand due to the availability of like products from competitors on the market. * The minimum wage rate set by the US government has increased the labor costs of the companies operated in the United States which has in turn increased their costs of doing business in the markets (Insley, 2011). * Companies that may merge in order to become a larger entity can have a major impact on Sears’s market position. * The global economic slowdown has affected peoples spending habits, which has caused a reduction in sales for Sears. Enough revenue is not being generated, which is having an overall effect causing Sears’s stock prices to continuously drop. * Sears lack of sales may cause suppliers to lose faith in their ability to sell its products, and force them to discontinue shipment of their supplies to Sears’s store locations. |

References
Clark, C. (2013, January 28). Turnaround of Sears Holdings. Retrieved from http://www.turnaround.org/cmaextras/15-Sears-Holding.pdf

Cramer, B. (2014, October 9). Rising Threats To Sears Holdings Corp (NASDAQ:SHLD). Retrieved from http://www.bidnessetc.com/26994-rising-threats-for-sears-holdings/2/

Insley, J (2011) House Prices Rises by 0.5%, retrieved on November 1, 2014 from http://www.guardian.co.uk/money/2011/mar/31/house-prices-rise-nationwide
Sohail, N. (2011, August 9). Sears Holdings Corporation. Retrieved from http://www.scribd.com/doc/61943575/Sears-Holdings-Corporation…...

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