Competitive Analysis

The company’s presence in all parts of the world has enhanced its success. Computerization of its operations has enabled it to strengthen its market share, while Sears seems to remain in old age of paper work. However, Wal-mart has been accused of discriminating against female employees and being insensitive to the environment. Wal-Mart has numerous opportunities at its disposal with several products introduced to the market. Introduction of musical products would bring the company enormous profits. The invention of the dollar general discount stores, which are offered discounts, was a key threat. While this may be a minor threat to Wal-Mart, it is a key threat to Sears holdings.

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It is noteworthy that Sears has a leading market position, however, the company has failed to take advantage of it and transform it to sales. A main weakness is low store sales and lack of capital investment. The holding has the opportunity of expanding its market to the internet phase to enhance online sales. The company has failed to keep abreast with the 21st competition from its competitors.

When Sears started as a mail order catalogue company 126 years ago, its success would not be overlooked. They offered almost every product to Americans, including clothing, jewelry, appliances, and sewing machines, and it was viewed as reflecting the American life. The company was able to foresee market changes, and put strategies in place to make profits out of them. However, the company was unable to keep up the pace with its rivals in the 21st century, and Wal-Mart was among them. It failed to offer customer satisfaction and their stores were short of capital investment. The company’s downfall was evident when it purchased almost bankrupt Kmart, and formed a merger, Kmart-Sear, in 2005. The company has been selling off parts of its assets and stores to other private companies.

Wal-Mart’s global presence gives it a competitive advantage over Sears. Their adoption of online business and offering products at low prices are strategies which give it a competitive advantage.

Licensing and adopting their flagship brand is vital for the company to attract new customers. Since a high number of people were noted to be visiting the company’s online store, it is vital for the company to enhance its online stores number.

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According to CNNMoney, Sears holding is ranked 65th from its previous position 57, while Wal-Mart has declined from its previous position 1 to position 2.