Strategy -Company Analysis

SEARS HOLDINGS

Sears holdings is an American retail icon dating back from the 19th century. The company had been very successful however there are growing concerns of Sears’s ability to survive. Recently, sales and profits have declined due to the increasing presence of online shopping retailers such as Amazon that have made shopping much easier by selling all types of products online at relatively lower prices.

The company announced in its annual report that substantial doubt exists about its ability to continue. According to wall street journal, it has $4 billion debt up from $3 billion a year ago therefore it’s going to be hard for the company to secure debt from its suppliers, which could potentially lead to empty shelves. Its inability to raise more cash might limit its access to new merchandise or its ability to procure services.

The aim of the proposal is to determine whether Sears holdings should stay in this particular business or divest its under performing business segments.

There are several recommendations I would suggest.

Sears should sale off some of its underperforming business units in order to improve financial performance.
Close some stores that are not generating enough profits and improve the profitable stores.
Focus on particular products and give discounts and offer better reward programs to regain customers.
Upgrade online shopping.

FINAL PAPER – SEARS HOLDINGS

1.Executive summary

2. Introduction of the company- Address the strategic question? Should company stay in this particular business or divest its underperforming business segments.

3.Industry Analysis

History
Market size
Segmentation
Business model
Sources of profitability
Competitors
Porters five analysis
Future trends

4. Company analysis

Company overview
Weaknesses

5. Strategy formulation and implementation

Exploiting the five forces
Make three recommendations
Give pros and cons to each recommendation
Pick one solution and make a strong case

6. Implementation considerations

Pick four

NOTE

Use financial data, Charts, Graphs where applicable.

CONSIDER WHAT TO DO WITH ALL THEIR BUSINESS SEGMENTS. FOR EXAMPLE THEY PURCHASED LAND’S END? WHAT SHOULD THEY DO WITH IT?