Kohl's Case Study Kohl's Corporation essay

Download this essay in word format (.doc)

Note: Sample below may appear distorted but all corresponding word document files contain proper formatting

Excerpt from essay:



The main objective is to therefore maintain a stable level of market share or even to increase it. It is best that Kohl's activates in a stable environment. Therefore, given the latest economic trends that affect the global economy it is expected that the company will register sales and income decreases, the same as its competitors.

Therefore, it is recommended to implement strategies that allow the company to maintain low costs, so that prices will not be increased. This way, the company is able to ensure the same number of customers as before the financial crisis.

Such a defender type company should best rely on long-term planning, given the slow modifications that characterize the macro-environment. However, it is recommended to implement a short-term strategy also, in order to overcome the negative aspects that emerge because of the financial crisis.

SWOT analysis

The company's strengths are:

Tradition

Stability

National presence

High quality

Acceptable prices

Customer-oriented strategy

The company was established a few decades ago and the fact that Kohl's has continuously developed since its beginning proves that stability is one of the most important strengths a company could have. Even more, given the financial crisis that characterized the global economy, customers will appreciate stability. Customers are now oriented towards higher quality and higher priced products. Kohl's has acknowledged this orientation that is followed by the company's strategy.

The company's weaknesses are:

Large number of employees

Long-term strategy

The company is operating approximately 1003 stores nationwide that require many employees at store level and at corporation level. This means that the company does not have a flexible organizational system. Also, given the fact that Kohl's is a defender company, its strategy is a long-term one. As mentioned above, given the new economic trends, such a strategy might not be effective.

The company's opportunities:

New outsourcing countries

It is recommended that the company maintains prices as low as possible. This means that the company's products require production and transportation that can be achieved at low costs. Such production outsourcing countries include Vietnam and Bangladesh.

The company's threats:

Financial crisis

Although the company may not be severely affected by the financial crisis in a direct manner, it may be affected indirectly through its customers that may choose to cut back on unnecessary goods.

Recommended strategy

In more normal and stable economic circumstances, it would be recommended that the company develops a long-term strategy based on growth and international expansion. However, given the financial crisis that characterizes the global economy, it is recommended that Kohl's follows a short-term strategy until economic matters return no normal and the macro-environment will be more stable.

It is expected that customers will change their purchasing priorities in the next period of time and will not focus on items like apparel, footwear, or small electronics. Therefore, it is recommended to lower the prices for the most purchased products at Kohl's. However, such an action must be implemented without diminishing quality.

Marketing mix

Product strategy

As mentioned above, it is expected that customers' purchasing priorities will change in the next period of time. The company should remove its focus from expensive, luxury products to other products that have more frequent usability and that are purchased in larger quantities by customers.

The standards of quality must be maintained at the same level as before. It is not recommended to involve in any research and development activities right now or to launch new innovative products. It is likely that such products will not rise customers interest in such economic instability.

Price strategy

As mentioned above, it is recommended that the company tries to lower its prices, at least for the moment, so that the number of customers will not decrease. This strategy can be applied to the company's own brands especially. Production outsourcing destinations like China and India have increased the manufacturing and transportation costs. Therefore, such countries may not represent such a cheap alternative. However, the company should take advantage of other alternatives represented by emerging outsourcing possibilities like Vietnam, Bangladesh, or some African countries.

Distribution strategy

The distribution process will probably not suffer significant modifications. However, it is recommended to reduce costs wherever possible. The distribution process must also become more flexible.

Promotional strategy

It is not recommended to invest a great deal in the promotional strategy in these times. The company must prove its solidarity with its customers and the hardships they are going through because of the financial crisis. Therefore, luxurious and expensive promotional strategies may not be the best alternative. Print ads and mail advertising are the recommended methods for the company.

Reference List

Kohl's (2008). Wikipedia, the free encyclopedia. Retrieved October 26, 2008 at http://en.wikipedia.org/wiki/Kohls.

Global apparel markets: winners and losers (2008). Just Style. Retrieved October 26, 2008 at http://www.just-style.com/article.aspx?id=102339.

Annual Report (2007). Macy's Inc. Retrieved October 26, 2008 at http://www.macysinc.com/investors/vote/2007_10k.pdf.

Annual Report (2007). Sears Holdings Corporation. Retrieved October 26, 2008 at http://www.searsholdings.com/invest/docs/SHC_2007_Form_10-K.pdf#pagemode=thumbs&page=1&zoom=100,0,0.

Apparel & Textile Industry Associations & Organizations (2008). Retrieved October 26, 2008 at http://www.apparelsearch.com/associations.htm.

The United States (2008). Central Intelligence Agency. The world Factbook. Retrieved October 26, 2008 from https://www.cia.gov/library/publications/the-world-factbook/geos/us.html.

Four Strategic Types - Raymond Miles and Charles Snow (2008). 12 manage. Retrieved October 26, 2008 at http://www.12manage.com/methods_miles_snow_four_strategic_types.html.

Porter five forces analysis (2008). Wikipedia, the free encyclopedia. Retrieved October 26, 2008 at http://en.wikipedia.org/wiki/Porter_5_forces_analysis.

Supplier Diversity (2008). Kohl's Inc. Retrieved October 26, 2008 at http://www.kohlscorporation.com/Suppliers/Suppliers04.htm.

Kohl's Corporation Reports September Comparable Store Sales - press release (2008). Kohl's Inc. Retrieved October 26, 2008 at http://phx.corporate-ir.net/phoenix.zhtml?c=60706&p=irol-newsArticle&ID=1206834&highlight=.

Corporate Governance - Highlights (2008). Kohl's Inc. Retrieved October 26, 2008 at http://www.kohlscorporation.com/InvestorRelations/corporate-governance.htm.

Energy Management Programs (2008). Kohl's Inc. Retrieved October 26, 2008 at http://www.kohlsgreenscene.com/KohlsInitiatives/EnergyManagementPrograms.html.[continue]

Cite This Essay:

"Kohl's Case Study Kohl's Corporation" (2008, October 26) Retrieved December 8, 2016, from http://www.paperdue.com/essay/kohl-case-study-corporation-27319

"Kohl's Case Study Kohl's Corporation" 26 October 2008. Web.8 December. 2016. <http://www.paperdue.com/essay/kohl-case-study-corporation-27319>

"Kohl's Case Study Kohl's Corporation", 26 October 2008, Accessed.8 December. 2016, http://www.paperdue.com/essay/kohl-case-study-corporation-27319

Other Documents Pertaining To This Topic

  • Kmart Case Study To This

    First, the company needs to determine who they are -- what their mission is. If they want to be a low-cost leader and compete head-to-head with WalMart, increasing their economies of scale is critical. However, I don't think this is truly feasible. Instead, I would suggest that they find a way to differentiate themselves from WalMart, much like Target did. They attempted a very similar approach with hiring Martha

  • External Factors Penny s Proposed New Pricing Strategy

    External Factors Penny's proposed new pricing strategy The new Penny's proposed strategy is a revitalization strategy that is directed at the pricing procedures within the company. According to Penny, there should be a "Fair and Squire Every Day" pricing strategy. This new pricing strategy was not there initially. The transformations, which are also done by JC Penny's CEO Ron Johnson, are ambitious plans, which are geared at changing the phase of

  • Marketing Management of Boy s and

    The broader areas of Customer Relationship Management (CRM) serve as the foundation of client relationship management and analysis (Ravanas, 2007). There is the second weakness of also concentrating on the corporate donors as a largely homogeneous group. This can be seen in the approaches defined in the Club's annual report. The tailoring of individualized strategies can maximize the experiences of donors so they have a higher level of ownership in

  • Social Business and Retailer

    business2community.com/social-media/2012s-ten-worst-social-media-Disaster-0370309 Using contemporary illustrative examples from academic literature and reputable business publications, discuss the concept of "Social Business" and the resultant opportunity and challenges that are currently being faced by the retail industry globally. Concept of Social Business Concept of Social Business with Retailers Social Media and Retailing Best Practices in Administering Social Media There is a growing body of research that confirms that companies of all sizes and types can realize a wide array

  • Purchase of Real Estate by

    3 million buildings and plots of land. If it can conservatively be assumed that a minimum of five persons are affected for each business and a minimum of two persons for each building, then some 5 million people are directly involved in property-restitution claims - nearly a third of the population of the new Lander. (Blacksell et al., 1996, p. 200) Since December 1991, the number of claims filed with the

  • Maxx Company Strategic Marketing Plan Tk

    Maxx Company -- Strategic Marketing Plan TK Maxx Strategic Marketing Plan TK Maxx is expanding beyond the brick and mortar footprint that helped it rise to the top of retail operations in the United Kingdom. As with its competitors, TK Maxx has entered the mobile digital market and is implementing multiple distribution channels (McVey, 1960). The company has a clear target market that transcends the various channels over which its goods are

  • Lack of Employee Motivation Within Walmart

    IMPROVING EMPLOYEE MOTIVATION AT WAL_MART Employee Motivation Improving Employee Motivation at Wal-Mart Wal-Mart is the largest retailer and the second largest corporation in the United States. It is also the second largest private employer in the United States, with approximately 1.3 million workers (Jordan, 2008). Wal-Mart has also become the symbol for corporate mistreatment of workers. There have even been documentaries in the mass media that highlighted how Wal-Mart treated their employees and


Read Full Essay
Copyright 2016 . All Rights Reserved