Sears SWOT Analysis | Sears SWOT | Sears SWOT Analysis 2022 | SWOT
For almost 125 years, Sears has been a major player in the retail industry, revolutionizing it in a variety of ways.
The renowned store has experienced various hurdles in recent years and continues to suffer in a technology driven industry.
You need knowledge of the good, the terrible, and the ugly in order to succeed in business. This is where a SWOT analysis from Sears can help.
The following is a SWOT analysis of Sears:
Sears’ Strengths Recognized Brand: Sears has been linked with appliances for over 125 years. It is a well-known brand and the go-to retailer for fantastic deals on high-quality brands such as Kenmore. Sears is a well-known retailer.
High Quality: While most Sears products lacked the sparkle and creative beauty of other options, they are high quality and meant to endure longer. This is why, despite its flaws, customers continued to return to Sears.
Effective Niching: Companies that specialize on one thing are more successful than those that try to be all things to all people. Sears knows its way around appliances and other consumer goods. As a result, it narrowed its target market by selling consumer goods.
Strategic Mergers: When Sears and Kmart merged, they created a stronger and more competitive retailer. The merger boosted the company’s competitiveness and grew its store count to over 3,500, bringing together Sears’ Craftsman products and Kmart’s Martha Stewart collection. Everyday household items.
Sears has the broadest range of products under one roof, including freezers, stoves, garments, shoes, sporting goods, home renovation, washers, dryers, and much more. It’s a one-stop shop for anyone looking for anything in the consumer goods area.
Strong Distribution Network: A strong distribution network ensures that customers’ orders are delivered on time and without damage or loss. Sears’ Innovel Solutions used automation technologies to ensure that deliveries and logistics for appliances were smooth and reliable.
Weaknesses of Sears
Leadership Misalignment: With the arrival of new technologies at the turn of the twenty-first century, consumer behavior began to shift swiftly. Sears CEO Eddie Lampert adopted poor techniques based on his skills in hedge fund management rather than adjusting to match the new realities. Sears’ demise began with its decision to run the store like a hedge fund.
Excessive Cost-Cutting: Sears has entirely forgotten the adage “you have to spend to earn.” The corporation slashed costs to the point where profits began to fall. In 2017, Sears spent roughly 91 cents per square foot on upgrades, whereas Best Buy paid $15.36 per square foot on the same amount of store improvements. Sears wasted a potential to become the leader in online sales, similar to Amazon, despite the fact that it created at-home shopping and was dominant for decades. It was far too late by the time it began to use eCommerce.
Low Rebuilding Investment: Long-term viability necessitates significant investment on mission-critical infrastructure and systems. To keep afloat, Sears mismanaged its assets by selling underperforming stores, as well as their real estate and locations, rather than rebuilding the firm.
Diversification Too Soon: Diversifying offerings too quickly can confuse clients. Sears’ DieHard, Craftsman, and Kenmore brands marketed mostly to men who did their own home improvements. It diversified too soon to incorporate female-oriented products, which clashed with the company’s core offers.
Merging with Kmart: Despite the fact that the merger with Kmart aided Sears in expanding its size, market presence, and domination, the company’s massive size became untenable. Sears was compelled to lower their store count from 3500 in 2010 to only 182 in 2020 in order to stay viable.
Opportunities at Sears SWOT Analysis
Concentrate on utilizing eCommerce: The number of people who shop online is steadily increasing. Sears still has a chance to use eCommerce as a catalyst for its revival and expansion.
Expand into Emerging Markets: It is obvious that Sears is having difficulty competing in the extremely competitive US market. To flourish in the United States, the corporation can expand into less competitive markets and rebuild to gain a competitive advantage. Sears would thrive in underserved communities in emerging economies.
Younger Generations Should Be Targeted: Millennials and Generation Z are reshaping the consumer industry, while Sears is focusing on older generations. If it can better target younger generations, the retailer has a lot of room to develop.
Refocus on Appliances: By refocusing on appliances, Sears can overcome some of its issues. To lessen reliance on clothes, it could build smaller stores dedicated only to appliances. Since J.C. Penney announced its decision to exit the appliance sector in order to focus on clothes, the potential for development through appliances has grown.
Threats to Sears
Aiming for a Global Recession: The pandemic has wreaked havoc on economies and sparked a global downturn. Sears is too weak and unprepared to weather a significant economic downturn. The coming recession is without a doubt the most serious threat facing Sears.
Sears is up against severe competition from all sides, from appliances to clothes and home improvement products. Sears is constantly under pressure from powerful competitors such as Best Buy, Home Depot, Lowe’s, and others.
Increasing Costs: From rising raw material prices to more expensive labor and higher operating costs, each additional dollar will make it more difficult for Sears to reclaim its previous glory.
Tensions in the Trade: The global market has become more tense as a result of Trump’s America First strategy, increasing isolationism, and tit-for-tat tariffs. Sears’ profitability is threatened by trade tensions since it relies on suppliers such as Electrolux, who are based outside of the United States.
Counterfeiting is on the rise: Electronics, clothes, and other items have been increasingly imitated and counterfeited in recent years. Sears’ products are among the most sought after by counterfeiters, making the business particularly vulnerable to the practice.