Strategy Failure

This report discusses the strategy failure of Sears, an American department store chain, due to its failure to adapt to digital transformation. It explores the reasons for the failure and provides strategies to avoid similar failures in other organizations. The report emphasizes the importance of embracing technology, conducting extensive research, and implementing digital marketing strategies to ensure business success.

Strategy Failure
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INTRODUCTION...........................................................................................................................3
Company background and Strategy.................................................................................................3
Strategy failure.................................................................................................................................4
How the failure could be avoided....................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
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INTRODUCTION
Sears is an American chain of department store that was established by Richard Warren
Sears and Alvah Curtis Roebuck in the year 1892. Company offers wide range of products range
that include beauty products, clothing, appliances, house wears, footwear, furniture and more.
According to the article in the financial times, it has been evaluated that Sears has collapse due to
slow digital transformation (Radovanovic and et. al., 2020). Main mistake of this failure was not
having retail strategy along with changing retail landscape in which online retailing competitions
like Walmart and Amazon offers wide range of innovative facilities to shoppers such a good
experiences. Thus due to failed shift to business Sears failed to compel its consumers in the age
of digital era.
Present report is conducted to identify the reason of Sears strategy failure and the manner in
which it could be prevented. In this report formative discussion has been conducted upon the
overview of company along with its strategic direction. In addition to the report also include
evaluation of strategy failure along with the manner in which the failure can be avoided by
organisation.
Company background and Strategy
Sears was founded in the year 1892 and conducts its business operations in retail industry.
Company offer products related to clothing, appliances, house ware, beauty products and more.
It has been identified that this company was once the largest retailer in the provinces of United
State and offers high quality products and services to customers (Domae, Toda and Sawa, 2020).
By the year 2016 it has been identified that Sears continues to significantly experience decline in
its sales and profitability. This company once was a major attraction of customers towards high
quality products and services. It has been identified at one time is organisation was operating its
business functioning as a largest retailer in the world, during that time this organisations have
significant dominant in sales as it represented 1% percent of the entire United States economy.
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The mean reason behind the failure of company was negligence of innovation and undertaking
strategic decision by company executive.
In addition to this bankruptcy of this company also left Spears behind its competitors
Walmart, this has been evaluated that management of Sears failed to undertake and execute
strategy that lead entity to face massive disruptions in its value empire. It is essential for an
organisation to effectively respond towards changes, Innovation and new technology in order to
attract customer’s attention and ensure their sustainability in respective business segment. It has
been analysed that at some point this organisation stopped innovating which is one of the most
important element for an organisation progress and growth which affected Sears ability to stay
ahead of its competitors (Camisão and Vila Maior, 2020). However it has been identified that in
the year 1908 to 1940 the Sears catalogue become one of the most renowned organisation in the
industry and in the year 1950- 1999 this organisation have many departmental stores in the
provinces of United states. Furthermore it has been identified that in the year 2018 this company
was bankrupt that forced Spears to closes its number of stores. Slow growth and change in shift
towards digital technology acted as a primary factor that leads Sears towards is business failure
that affected company in number of ways.
Strategy failure
Strategy failure can be due to many reasons such as drop in the performance of organisation,
lack of new strategic actions, or the set of choices failure to understand challenges. Strategy
failure can lead a business organisation to face number of losses and bankruptcy from a market
segment. In addition to this it has been underlined that due to strategy failure an entity can lead
towards insolvency, bankruptcy and liquidation (Yuan and et. al., 2020). Furthermore it has been
identified that failure coping up with changes according to the trend also plays major role in
strategy failure which is the same situation that ended Spears to face downfall in retailing market
segments. According to the analysis it has been underlined that strategy failure is making linked
with wide range of solutions it can be the inability of an entity to meet its strategic position or
objectives. It is essential for an organisation to have strong successful strategy in order to
undertake more competitive advancements as compared to its rivals (Zhao and et. al., 2020).
Further it has been underlined that there is different type of elements that affected company
ability to fulfil its strategic mission. Furthermore it has been underlined that failure of business
operation can be the significant result of implementation of strategy in a poor manner this can be
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closely associated with the lack of employment engagement and adoption of changes by top
managerial executive of company. Along with this formulation of strategy can also act as a major
factor of strategy failure. It is essential for an organisation to have strong strategy objective and
adopt changes that are prevailing in marketplace according to the needs and demands of
customers in order to assure high growth and advancements. It has been identified that retail
business industry is highly aggressive and inclusive of number of factors that can affect smooth
operation for an entity. According to the report of Financial Times it has been identified that due
to slow shift towards digital technology Spears faced strategic failure as key executives of
company failed or implement new changes organisational workplace structure in an effective
manner. It leads company towards facing heavy losses decrease and its brand value and
liquidation.
How the failure could be avoided
Negligence of adopting technology is not that much uncommon in a retail industrial business
sector, this can be overcome with the help of proper prevention and implementation of strong
strategies. As per according to the viewpoint of many policymakers and scholars it has been
identified that it is the most important responsibility of organisation to undertake effective
measures and engage into extensive research in order to identify the actual trends that a
prevailing in respective market. With the help of this they can identify current prevailing trends
in marketplace along the expectation of customers in addition to this it has been identified that
are in R&D department of an organisation is playing most important role in identifying the
changes that are occurring in marketplace and are further responsible to communicate the same
to management along with the urgency of implementation of the same. In context to the present
scenario it has been identified that Spears failure can be effectively prevented with proper
consideration that can be taken by individual or institution.
It has been identified that organisation by engaging into extensive research to identify the
urgency of the digital technology in the business mechanism can effectively able to overcome
failure at some extent (Shan and et. al., 2020). Due to the emergence of organisations like
Amazon and Wal-Mart customers are effectively attracted towards their services as they provide
online facilities in discounted range. In this it is the most important responsibility of board of
directors of Spears to identify the necessity of the change within an organisation. Spears by also
taking assistance of decision making, business intelligence techniques to identify the need of
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digitalization is business can overcome the business failure. In addition to this company by
taking advantage of digital marketing strategy can take out the company out of outdated brand
and can serve customers with the modern angle. Company with the assistance of website can
appeal attention of large base of customers and can provide unique and innovative services.
Being an old American retailer this company is having loyalty at some extent among customers
thus, with the help of digital revolution company executive can ensure profitability in
marketplace. According the analysis it has been identified that in the first six months of 2017 this
organisation nearly spends 29% or less than on direct mail, ad, television and radio. With
decision of splashing the budget for advertising lead company executive to face business failure,
it has been identified that compared to their rivals this company is spending very less amount on
advertising digital marketing strategy proves to be the key factor of failure of Spears. Thus, with
the help of digital presence this company can sustainable business and can get out from the
losses. It is essential for key executives of organisation to effectively embraced marketing
strategy in order to survive in the market digital marketing strategy that can act as a lifeboat for
company through which taken bounce back from bankruptcy and business failure.
Thus, it is essential for an organisation to effectively respond towards digital and other form
of destructive changes in time effective manner. Company can overcome the failure by executing
strategies to attract attention towards its digital page. In this entity can create new cost, value
platform for customers in order to provide experience to consumers in a more promising manner.
In addition to this, by making the ship towards online sales and identifying consumer behaviour
and consumption pattern Spears can conduct its business by assuring profitability and
sustainability. Innovation also acts as one of the most important factor through which you can
have ability to stay ahead of competitive strength. With the help of innovation company can
successfully marked a progress and can serve customers in more effective manner. Digital
transformation played a significant role for the organisation through which the impact the high
growth and profitability in industrial sector with the help of continuous Innovation and digital
sources Spears can effectively provide extensive range of services to customers through which
company can ensure higher reach in its sales and value proportion in respective industrial
segment. Thus, according to the above mentioned analysis it has been identified that it is
essential for any organisation irrespective of its size and scope to effectively respond towards
changes in proper time frame as any form of negligence may lead entity towards facing losses.
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CONCLUSION
As per the above mentioned report it has been identified the primary reason that has been
underlined for Spears failure is to adopt digital business. This failure can be avoided by company
by undertaking proper understanding of possible ways. In addition to this it has been evaluated
start by taking advantage of effective strategical solution and individual action in an effective
way organisation can overcome that failure. It is essential for any organisation in this modern era
to adopt changes in order to serve customers accordingly. This also access organisation to
achieve more competitive advancements compared to other rivals. Digital technology is playing
most important role which is the main fundamental reason of Sears failure that can be overcome
with the help of individual decision making by company job manager as well as key executives.
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REFERENCES
Books and Journals
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patients with COVID-19: a management strategy proposal. Journal of clinical
medicine, 9(4), p.1191.
Zhu, D., Wu, Y., Liu, Z., Dong, X. and Yu, J., 2020. Failure mechanism and safety control
strategy for laminated roof of wide-span roadway. Engineering Failure Analysis,
p.104489.
Zhao, C and et. al., 2020. A two-phase modeling strategy for analyzing the failure process of
masonry arches. Engineering Structures, 212, p.110525.
Qian, H.M., Huang, T. and Huang, H.Z., 2020. A single-loop strategy for time-variant system
reliability analysis under multiple failure modes. Mechanical Systems and Signal
Processing, 148, p.107159.
Camisão, I. and Vila Maior, P., 2020. Failure or success: assessing the European Commission’s
new strategy to foster EU’s economic recovery. Journal of European Integration, 42(2),
pp.195-211.
Abdoos, M., Rawal, S., Arif, A.F.M. and Veldhuis, S.C., 2020. A strategy to improve tool life by
controlling cohesive failure in thick TiAlN coating during turning of CGI. The
International Journal of Advanced Manufacturing Technology, 106(7-8), pp.2793-2803.
Domae, K., Miyagawa, S., Toda, K. and Sawa, Y., 2020. New treatment strategy for severe heart
failure: combination of ventricular assist device and regenerative therapy. Journal of
Artificial Organs, pp.1-5.
Yuan, X and et. al., 2020. Respiratory support for severe 2019-nCoV pneumonia suffering from
acute respiratory failure: time and strategy. Zhonghua jie he he hu xi za zhi= Zhonghua
Jiehe he Huxi Zazhi= Chinese Journal of Tuberculosis and Respiratory Diseases, 43(3),
pp.177-180.
Shan, M and et. al., 2020. Noninvasive Ventilation as a Weaning Strategy in Subjects with Acute
Hypoxemic Respiratory Failure. Respiratory Care.
Yan-Wen, X.U and et. al., 2020. Revealing the synergistic mechanism of Shenfu Decoction for
anti-heart failure through network pharmacology strategy. Chinese Journal of Natural
Medicines, 18(7), pp.536-549.
Ekstrand, K.R. and Abreu-Placeres, N., 2020. The impact of a national caries strategy in
Greenland 10 years after implementation. A failure or a success?. International Journal
of Circumpolar Health, 79(1), p.1804260.
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