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Essay / (SHLD) SWOT Analysis, Porter...
Our recommendation is to take Sears Holdings Corp. private. (SHLD) through a private equity buyout. After that, we recommend implementing a centralized management structure and recruiting retail-savvy executives for the senior management team. We then recommend focusing on increasing value by capitalizing on SHLD's real estate assets through rental contracts and by increasing partnerships with complementary companies. We also recommend improving employee retention rates and retaining exclusive rights to private brands. Finally, we recommend focusing on a long-term strategy to continue maximizing SHLD's e-commerce platforms. We believe these recommendations will lead to long-term stability through increased customer base and revenue and decreased overhead costs. StrengthsOne of SHLD's main strengths is its exclusive brands such as Diehard, Kenmore, Craftsman and Lands' End, as these brands have a high customer loyalty and repeat customers. Another of our strengths is our vast pool of valuable real estate assets. These assets allow SHLD to generate ongoing income through lease agreements and a safety net in the event of a liquidity crisis. Additionally, the “mygofer” and “Shop Your Way” programs account for more than 60% of revenue at Sears and Kmart stores. These loyalty programs have created a strong and loyal member base that ensures SHLD’s loyalty. Finally, Sears Holdings has been around for over a hundred years and therefore has a well-established brand in the discount retail industry. WeaknessesOne of SHLD's weaknesses is a management team that lacks knowledge of the retail industry and fails to communicate effectively across business units. . A second weakness is middle of paper ...how much does it cost businesses to lose employees? »CBSNews. CBS Interactive, November 21, 2012. Web. October 23, 2013. McSherry, Mark. “70 billion reasons for a public company to go private.” Forbes Magazine, August 16, 2013. Web October 23, 2013. Santoli, Michael. "Sears is growing on the web – but can it shrink offline fast enough?" Yahoo Finance. Yahoo!, August 22, 2013. Web. October 23, 2013. "Sears Selling Craftsman at Costco, Will Kenmore Soon Follow?" Sears Selling Craftsman at Costco, Will Kenmore Soon Follow? Consumer Reports, September 15. 2011. Web. October 23, 2013. Tekippe, Abraham. “How Kraft, McDonald's and Sears Do Social Media Right.” » Crain's Chicago Business, January 2, 2012. Web October 23, 2013. Young, Chris. Strategies drive revenue growth at Sears. "Employee retention strategies drive revenue growth at Sears. Street Directory, nd Web. October 23.. 2013.