This report presents a strategic analysis of Kmart Limited, an Australian-based retail store owned by Wesfarmers. The report delves into both external and internal factors impacting the company's performance. The external analysis includes PEST analysis, industry life cycle assessment, and Porter's Five Forces model to understand the market dynamics and competitive landscape. The internal analysis utilizes the VRIO framework to evaluate Kmart's resources and capabilities, along with an examination of its competitive advantages, profitability, and value creation strategies. Furthermore, the report discusses Kmart's functional level strategies, focusing on how the company enhances quality, innovation, efficiency, and customer responsiveness. The analysis aims to provide a comprehensive understanding of Kmart's strategic position and offer recommendations for future growth and development. The report covers a range of topics including political, economic, social, and technological factors impacting Kmart, its product life cycle stages, competitive forces, internal resources, competitive advantages, profitability, value creation, and functional level strategies. The report uses models like PEST, Five Forces, and VRIO to analyze the business. Finally, recommendations and conclusions are presented based on the findings.