Topic > Kmart Corporation: Seeking Customer Acceptance and Preference...

Kmart Corporation: Seeking Customer Acceptance and PreferenceHISTORYKmart was founded in 1899 in Detroit by Sebstian S. Kresge. At that time, the first store offered low-priced goods. The store was small (about 4,000 to 6,000 square feet). The company has undergone several types of changes throughout its history. These changes include different types of strategies and changes. However, one of the most important changes occurred in 1957 when the company entered the discount market. During this time period and later, the company used many types of strategies, but almost most of them were not based on real studies. They were the result of the good position of the company. The second change occurred in 1990 when the company began to focus its strategies on building a real business based on the results of the market survey. This period changed the shape of the company especially with increasing competitive pressure. Finally, the third expected change will occur after examining the results of applying the strategies of the late 1990s. This is because discount department stores have reached maturity and the results of the success achieved by the latest strategy may be the reason for the strong economy but not the strength of the strategy. OVERVIEW OF GOALS, STRATEGIES AND OBJECTIVES The company has used many types of different strategies. The first, used in the early days, was based on offering low-priced items and the "5 cents and 10 cents" or "variety store" concept was used. These two concepts were beneficial to the organization at that time. As a result, the organization believed it could increase its retail business using the following steps: centralized purchasing and control, developing standardized operating procedures for stores, and expanding into high-traffic areas by opening new stores. This strategy continued for many years to come. By the time the company was formed in 1912, it had 85 stores with more than $10 million in sales and became the second largest variety chain in the world. In 1916, and following reincorporation, new strategies such as mail-order catalogs, full-line department stores, and self-service were used. Additionally, he continued to operate variety stores. The third change that occurred for the organization took place in 1957. It began to try to use the discount merchandising strategy as a new trend in the business..