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Kmart Inc And Builders Square Case Solution

Solution Id Length Case Author Case Publisher
1962 314 Words (2 Pages) Lisa Meulbroek, Jonathan Barnett Harvard Business School : 200044
This solution includes: A Word File A Word File

The lack of the amalgamation in the old and new (Builders Square) retail stores was the core reason behind the failure of Builders Square. On the firm level, Kmart lacked the innovation and expertise to operate the business efficiently.

Following questions are answered in this case study solution

  1. Why has Builders Square become unsuccessful?

Case Analysis for 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.

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