Sears Holdings Corp. (SHLD) SWOT Analysis, Porter’s Five Forces Analysis and Recommendations
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Our recommendation is to take Sears Holdings Corp. (SHLD) private through a private equity buyout. After doing so, we recommend implementing a centralized management structure and recruiting retail-savvy executives for the upper management team. We then recommend focusing on increasing value by capitalizing on SHLD’s real estate holdings through leasing agreements and increasing partnerships with complementary enterprises. Also, we recommend improving employee retention rates and retaining exclusive rights to private brands. Finally, we recommend focusing on a long-term strategy to continue to maximize SHLD’s ecommerce platforms. We believe these recommendations will lead to long-term stability through increases in customer base and revenues and decreases in overhead costs.
One of SHLD’s main strengths is its proprietary brands such as Diehard, Kenmore, Craftsman, and Lands’ End because these brands have a great amount of customer loyalty and repeat customers. Another one of our strengths is our vast pool of valuable real estate assets. These assets enable SHLD to generate continuous revenue through leasing agreements and a safety net in a liquidity crunch. Additionally, “mygofer” and “Shop Your Way” programs account for more than 60% of revenues for Sears and Kmart stores. These loyalty programs have created a strong and loyal member base who provide repeat business for SHLD. Lastly, Sears Holdings’ has been around for over a hundred years and thus has an established brand name within the discount retail sector.
One of SHLD’s weaknesses is an upper management team who lacks knowledge of the retail sector and fails to communicate effectively across business units. A second weakness is the de...
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