Sears Domestic: Differentiation Strategy Than Low-Cost Strategy

Based on our aforesaid analysis, with the objective of increasing profitability in such a competitive industry as retail business, the failure of Sears Domestic was mainly caused by the shortage of resouces and capabilities as well as tactics definition and execution rather than strategy itself. Since Sears Domestic has a non-competitive cost structure in comparison with its key competitors (e.g. Walmart, Target, Home Depot, etc.) , it is wiser to pursue differentiation strategy than low-cost strategy. In addition, Sears need more focus on customer segments to compete. Therefore, in our recommendations, we will put emphasis on action plan in order to materialize Sears’ focus differentiation strategy, which includes two main groups of recommendations:
We recommend the upgrade of the store by hiring a skilled architect to revamp the store. This should also be aligned in a way that it reflects the premium image of the store. This would help attract high end customers who are generally more loyal that the lower end cost sensitive customers. There should also be a store within a-store concept to attract new brands and merchandise. This concept will open huge possibilities for sears as it could rope in many iconic brands which are trending currently. One example to this is the Forever 21 brand, which has been increasing its customer base since
Styles seemed obsolete, division format was poor, furthermore, the environment of the store fell fundamentally behind Sears' rivals. Therefore, we trust Sears will experience issues to recapture equality with its opposition without outside ability. As specified in the Industry Trends segment, quick form is a developing pattern in the attire industry, and we trust Sears and Kmart ought to offer their own quick mold brand to reinvigorate deals. Since quick mold requires particular outline and assembling strategies, we recommend that Property try to obtain a current quick design retailer keeping in mind the end goal to pick up their skill, and join the quick form retailer's qualities in attire plan with its own particular qualities in sourcing easygoing clothing to redo its higher end offerings focused at more seasoned age demographics. Quick form is especially diverse than fantastic attire retailing. Rather than depending on a couple in house originators, quick design retailers source plans from many architects and spot orders for little amounts of every outline. The top rated items are then reordered. One approach to apply this to bigger and more lead time requests may be to reward the outline contracts to the best performing originators. Ideally, as more youthful clients adult, they can be moves to the higher end clothing