Description
Sears Holdings is a corporation that based in the United States. The multinational corporation has over 4,000 retail stores across the globe. Sears Holdings started in 2005 following the merger between Kmart and Sears. The company operates its stores under the names Kmart and Sears (“Sears Holdings Corporate Website”, para 1).
It also has a number of subsidiaries that it operates under their own names. Sears is ranked number ten among the largest retail stores in the United States in terms of revenue. The company’s main business is the sale of home appliances, mobile devices and accessories, fruits and vegetables (grocery), as well as food products, drinks, and beverages. In addition, the company also offers fitness equipment, as well as lawn and garden tools. It also offers a number of home services such as installations.
An organization has to adopt a business model that is viable and likely to give it a competitive advantage to succeed in the business world. The business model adopted by Sears Holdings is aimed at maximizing consumer satisfaction. It is imperative to note that a business model is developed to create, deliver, as well as capture value for the organization. The value of an organization gives it a competitive edge. The company aims at attracting more customers and increasing its sales.
In line with this, Sears has a business model called, “Shop Your Way”. Under this model, the customers are given the privilege to buy whatever they want and shop in the style that they feel comfortable with. Shoppers earn points as they buy. They are also rewarded with benefits that are in both digital and physical formats. Rewarding is done through ShopYourWay.com (“Sears Holdings Corporate Website”, para 1).
It is important to note that “Shop Your Way” is aimed at encouraging people to shop online. Every item that one buys online earns points. This reduces the operating costs of the organization and increases its profitability. Online sales save the organization the cost incurred in holding stock, as well as other costs related to warehousing.
The customers are able to chat with the organization’s staff through the online services. Customers are able to ask for assistance any time they are stuck. In addition, they are able to get real time feedback on any issue they would like to inquire about. This business model is in line with the increasing use of technology in business. It is a model that has the ability to facilitate innovation, efficiency, and effectiveness.
Business objectives
Organizations need to be guided by objectives to achieve their goals. The set objectives should be in line with the business strategy and in a capacity to help the organization in achieving a competitive advantage. Sears Holdings has a set of objectives that it aims to achieve through applying the “Shop Your Way” business model.
One of the objectives is to drive repeat visits. Under this objective, the organization aims at encouraging those who will shop in its premises to come back in the future. The company has a strategy whereby it targets to create a long-term relationship with its customers.
Sears, therefore, offers services and products that maximize customer satisfaction and persuade customers to come back. The other objective of Sears Holdings is to improve its productivity and efficiency. Organizations need to continually increase their productivity and efficiency considering the increasing competition in the business world today. This encourages the use and adoption of technology, as well as innovation.
Organizations are able to improve their productivity and efficiency significantly through the use of technology. In connection with this, Sears Holdings also has an objective of continually reinventing itself through the use of technology and innovation (“Work For Sears Holdings Corporation”, para 7). The world is now turning to technology for most services and activities, thus an organization ought to be at par with the changes; otherwise, it is likely to lose its competitive advantage.
Brand building is the other objective that is pursued by Sears Holdings. A strong brand is a source of competitive advantage for the organization. Sears Holdings aims at making its brand strong and highly reputable to attract more customers into buying its products and services, leading to an increase in sales and profitability respectively.
Finally, the objective of Sear Holdings is to continually reinforce its “Shop Your Way” business model. This is a business model that has been a major factor in the company’s success, thus Sears has decided to continually reinforce the model as an objective (“Work For Sears Holdings Corporation”, para 1).
It is notable that the objectives of Sears Holdings are aimed at increasing and adding value for its customers. The value proposition is the bottom-line for all its objectives. The company recognizes that customers are very important for its success. Sears recognizes that it is only through the customers that it can make sales that can make profits (COLLOQUY Loyalty Awards 2).
Consequently, Sears Holdings’ objectives are divided into business and design objectives. The business objectives are those objectives that are aimed at bringing new customers and maintaining the existing ones at the same time. This is done through increasing the level of satisfaction that the customers get from the products and services offered by the company.
On the other hand, design objectives are those objectives that are aimed at continually improving the products and services in terms of quality. The design objectives are also aimed at providing differential treatment for customers. For instance, the company focuses on increasing the dialogue between the customers and employees through the “Shop Your Way” policy since it provides online chatting options.
Sears Holdings’ Strategy
The business strategy of any organization is aimed at helping the organization achieve its business model. The objectives that an organization has set are only achieved if the organization has a workable business model. Therefore, it is correct to say that the business strategy facilitates the achievement of the organization’s objectives.
One of Sears’ major strategies is to focus on customers. The company values its customers so much that it is always ready to listen to them and respond to their reactions at any given time. Consumers are very important to any organization. No organization can achieve its financial objectives without the consumers. Sears Holdings recognize this. In turn, the company has adopted a strategy that will enable it to keep the customers close and satisfied. The company has done well in the strategy of focusing on its customers so far.
The other strategy that the company has adopted is the strategy of building teams and aligning them with the objectives of the company (“Work For Sears Holdings Corporation”, para 9). Workers are likely to achieve more when they work collectively compared to when they work as individuals. It is possible to share ideas and come up with more comprehensive decisions through teamwork.
Teamwork facilitates innovation and the achievement of the organization’s competitive advantage. One of the objectives of Sears Holdings is to continually re-invent the company through technology and innovation. Building teams and aligning them is a strategy that is meant to facilitate innovation and technological development in the organization. This helps the company to offer better services to its customers and become effective in establishing long-term relationships with them.
It is also effective in the brand building objective. Finally, Sears Holdings has adopted the money making strategy. This is a strategy that helps the company maximize its profitability. Increasing the level of sales and minimizing the operating costs at the same time are two major strategies that can help Sears maximize profits. The company encourages online shopping to reduce its operating costs. Points and rewards, on the other hand, attract customers into buying its products and increasing its sales.
Recommendation
The CEO of Sears Holdings should focus on prices and quality to increase the level of sales. The CEO should offer goods that are of high quality at prices that are affordable to many. Customers are always willing to pay less and get maximum satisfaction. The CEO should also focus on reducing the operating costs.
This can be done by establishing an effective supply chain that will ensure goods are available in all outlets at the right time. Innovation will also facilitate cost reduction. The company should also enhance its online sales. Sears should get more people to buy online to reduce the operating costs by a significant margin.
Works Cited
“Sears Holdings Corporate Website.” Sears Holdings Corporation 2013. Web.
“Work For Sears Holdings Corporation.” Sears Holdings Corporation 2013. Web.
COLLOQUY Loyalty Awards. Sears Holdings Corporation 2011. Web.