Kmart's internal strengths include their current CEO Floyd Hall and their current Restructuring plan. Floyd Hall has demonstrated himself to be of great value to Kmart. He saved them from near bankruptcy in January 1996. He negotiated with leaseholders, vendors and creditors not to force them into bankruptcy in spite of the junk bond rating they had received.
Their internal weaknesses include their inability to compete with Wal-Mart on price, their image, and inability to implement goals and strategy, and their corporate culture. Kmart's image is so negative that 49% of Wal-Mart's customers indicated in a survey that they drive past a Kmart to get to a Wal-Mart. The reasons cited for perceiving Wal-Mart as better included the perceptions that Wal-Mart's prices are cheaper and that their products are better both in quality and value.
The external opportunities for Kmart are their private-label merchandise, which has improved in both quality and value. Overseas Expansion is......
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