Kmart Inc And Builders Square Case Solution

1. Why has Builders Square become unsuccessful?

The failure of Builders Square is a result of a combination of internal and external factors. Before moving forward to the specific internal factors, this is crucial that the industry level causes are taken into consideration.

The industry level cause of the failure of Builders Square is that the top two players were strong and big enough to realize huge economies of scale and their positive performance reduced the chances of Builders Square to become successful. Their success, growth, market share and strategy disallowed any small stores to be prosperous, both financially and non-financially. The two big players of the market, Home Depot and Lowe’s, possessed intense market power in the home improvement industry.