A Turnaround Strategy of Kmart Company - Essay Example

The company management has also gained staffing confidence in its market through the achievements of its managers and employees and awards given to its staff. Kmart has adopted and implemented a turn-around strategy, which has significantly transformed its management structure. This implies that unprofitable stores and underperforming employees are retrenched, in any renewal (Pride & Ferrell 36). This strategy ensures that a high-performing staff is retained, and employees are promoted to where they can work effectively.

 Kmart has also managed to limit face-to-face competition from its key competitors, such as Walmart and Target, by locating its stores away from them. It has employed expertise that plans the appearance and layout of stores to satisfy different customer segments (Pride & Ferrell 36). Finally, the company has established an effective retailing system by focusing on certain key areas of technology. This system helps in controlling supplier payments and inventory. It also monitors income versus profit margins and tracks customer behaviors across all stores (Pride & Ferrell 36).