External Trends Facing the Strategic Managers at Kohl’s
The first and real threat that kohl’s corporation is facing is stiff competition from other departmental stores. J.C Penney has matched Kohl’s in every dimension. It has made its stores easier to navigate and match with one of the strengths of Kohl’s corporation. J.C has also strategized in the Kohl’s stronghold and has lowered its prices to counter Kohl’s business activities in these areas. J.C Penney was ranked higher than Kohl’s in at least two areas due to its strong web presence, and influential private-label brands that generated strong profits.
Other stores such as the Old Navy and American Eagle have shifted from trendy teenage fashion toward clothing that appeals to moms. Kohl’s corporation targets moms with children, who earn an average income. Therefore, when the other stores venture in the same business they pose a challenge to Kohl’s.
Other departmental stores have come up with ways of dealing with long checkout, missing lines or vague product information, out of stock products, incorrect price tags, and scarce sales staff. These challenges, however, have been handled remarkably well by the Kohl’s strategic team. Another external trend that affects Kohl’s corporation is price fluctuations due to economic factors such as the recession.
It is essential for the strategists at Kohl’s to have a contingency plan in case such challenges occur in the future in order to have a cutting edge over its competitors. It is crucial for these strategists to spot these trends early by conducting a survey. A survey helps to collect ample information about the market and ensures that one understands the market better. The strategists may also use questionnaires to identify what the target group preferences are. Other methods of gathering information about the market include observation and interviews of the targeted group.
Types of External Information Required
Strategic decision-makers in Kohl’s corporation require one to know the tastes and preferences of the targeted group. This helps the strategists to formulate their structures and come up with products at the right prices in order to increase sales thereby increasing its profits. The strategists should also enquire about the problems the consumers are facing about their products. This will help them come up with resolutions that are crucial to have an edge over their competitors.
For a manager, one requires information about the competitors’ prices and strategies. This helps in coming up with the best prices and strategies to counter their competitors’ activities. A manager also should enquire about how the customers perceive the workers and services the customer receives. This helps in the improvement of the services by the stores.
Scanning and Assessing the Environment by the Kohl’s Decision Makers
The decision-makers in Kohl’s corporation have done a splendid job in assessing and understanding the market environment for its products. The decision-makers have researched extensively the problems facing its customers. They have also come up with ways that are working extremely well for Kohl’s departmental stores. Kohl’s decision-makers understand their target group that mainly consists of moms who earn an average income per year and are making sure that their products are appealing. The decision-makers have also looked into the competitors’ strategies and understand them quite well and, therefore, have developed measures to counter any strategies deployed by their competitors aimed at challenging them.
Conclusion about Opportunities and Threat from the Case
There are many challenges to any business entity, and Kohl’s departmental stores are not exempted. It is, therefore, necessary and beneficial to understand the market conclusively in order to capitalize on the business opportunities available and curb any challenges that exist. Understanding the target market and the competitors extensively help a business entity achieve its goals and gain higher profits.