Strategic Management of K-mart

Running head: STRATEGIC MANAGEMENT OF K-MART
Strategic Management of K-mart
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1STRATEGIC MANAGEMENT OF K-MART
Executive Summary
The primary purpose of this report is to discuss about the retail company K-mart and its
industry. It elaborates on the porters five forces analysis in relation to the company and states
the recommendations that can help in improving the strategic management of the company.

2STRATEGIC MANAGEMENT OF K-MART
Table of Contents
Introduction................................................................................................................................3
Porter’s Five Forces Analysis....................................................................................................3
Porter’s Value Chain Analysis...................................................................................................6
Key Findings and Recommendations.........................................................................................7
References:...............................................................................................................................10

3STRATEGIC MANAGEMENT OF K-MART
Introduction
Kmart Australia Limited refers to the chain of Australian stores which is owned by
the Wesfarmers. It is instrumental in operating around 214 stores within Australia along with
20 store within New Zealand (Kmart.com.au 2018). The head office of K-mart Australia is
located within Melbourne. With the help of K-mart Australia the customers can shop online
different items like toys, furniture, home décor and home & entertainment appliances. The
latest selection pertaining to products makes shopping at K-mart a pleasurable experience for
the consumers. Retail industry within Australia is facing a great amount of disruption. There
are various overseas business that has entered the market and they have brought a new
approach in relation to retailing. Retail landscape has changed along with the demands of the
customers in the present age. The customers in the modern age have become more tech savvy
which is a major reason for the popularity of online shopping in the present era (Hill, Jones
and Schilling 2014). The expectations of the customers have evolved in the present age and
technology has played a major role in changing the behaviour of the customers. This report
discusses about the porter’s five forces pertaining to K-mart and the recommendations that
can help in increasing the attractiveness of the industry.
Porter’s Five Forces Analysis
Porter’s Five Forces refers to a model that can help in the analysis of the five
competitive forces that can help in the shaping of the industry. It can prove to be useful in the
determination of the strengths along with weakness of the industry (Wheelen et al. 2017). The
five forces framework can help in addressing diverse kinds of problems and it can help a
business in becoming more profitable. The Porter’s model is applicable to segment of
economy that can help in assessing the attractiveness of the company.
Threat of New Entrants