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Sears Holdings (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Sears Holdings 

Sears Holdings is a broad line retailer with 3,847 stores in the US and Canada. Of these it operated 2,317 full-line stores and 1,150 specialty stores in the US and 121 full-line and 259 specialty stores in Canada. The company operates through Sears and Kmart in the US and through Sears Canadian Canada. Strong market presence in the US and Canada results in economies of scale and enhances the brand image of the company. However, increasing competition could affect Sears Holdings margins and market share.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor






  • Strong retail network
  • Leading market position
  • Balanced brand mix
  • Broad product offerings


  • Weak comparable store sales
  • Low inventory turnover
  • Lax quality control



  • Growth in private label products
  • Increasing online sales
  • Decentralizing operations
  • Growing US healthcare spending


  • Intense competition
  • Low consumer confidence
  • Sub prime crisis
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