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Kmart Answers

Case Study – What Happened to Kmart? 1. Evaluate Kmart using the value chain and competitive forces models. What was Kmart's business model and business strategy? Kmart has numerous problems with its value chain. This is evident from the suppliers sending items that the suppliers want to sell, shelves remaining unstocked, the "hand shifting" reordering process for popular items, products being allocated by central planners and not based on individual store demand, excess inventory stored in 15,000 truck-trailers behind its stores, shrinkage, and having to choose to either ship toothpaste or Christmas trees. Since its entrance as the first discount store in the 1960s, Kmart has not been able to ward off new entrants into the disc

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