Analysis of The Value Concept of the Sears Company (Coursework Sample)

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QUESTION 3
Compare and contrast the total value concept for Sears and your favorite retailer
According to Porter the company can be compared to Wal-Mart in the following areas. CITATION Air15 \l 1033 (Katherine, 2015)
* Inbound logistics: This refers to everything involved in receiving, storing and distributing the raw materials used in the production process. Both the companies keenly receive, store and distribute the materials with the help of computer systems.
* Outbound logistics: This is the distribution of the final product to consumers. The final products of the goods in both companies are distributed upon order and distributed using the fleet of vehicles.
* Marketing and sales: This stage involves activities like advertising, promotions, sales-force organization, selecting distribution channels, pricing, and managing customer relationships of the final product to ensure it is targeted to the correct consumer groups. The marketing and promotion strategies are weak while the Wal-Mart strategies are strong.
* Service: Normaly,this refers to the activities that are needed to maintain the product's performance after it has been produced. This stage includes things like installation, training, maintenance, repair, warranty and after-sales services.
* Procurement: This is how the raw materials for the product are obtained. The Wal-Mart company sources the raw materials majorly from the foreign countries. The company buys the goods in large quantity so as to take advantage of the economies of large scale. Sears Company has experienced difficulties in purchasing goods in large quantities.
* Technology development: Both the companies have endeavored to use technology.Ordinarily, technology is used across the board in the development of a product, including in the research and development stage, in how new products are developed and designed, and process automation. Both companies involve in deep research to identify the market niche.
* Human resource management: These are the activities involved in hiring and retaining the proper employees to help design, build and market the product.
* Firm infrastructure: This refers to an organization's structure and its management, planning, accounting, finance and quality-control mechanisms.
QUESTION 4
What types of utilitarian and hedonic value does Sears presently provide to its customers?
Some researchers have used the terms luxury and necessity more broadly, in a less technical sense, to imply that luxuries are consumed primarily for hedonic pleasure while necessities are required to meet more utilitarian goals. Hedonic goods are multisensory and provide for experiential consumption, fun, pleasure, and excitement. The company has added some hedonic values such as sporting goods, jewelry outdoor living. The utilitarian goods, on the other hand, add utilitarian value to the company. Examples include footware, accessories and lawn and garden equipment.
Both utilitarian and hedonic consumption are discretionary and the difference between the two is a matter of degree or perception. That is, in comparison to utilitarian consumption, hedonic consumption may be perceived as relatively more discretionary. Different products can be high or low in both hedonic and utilitarian attributes at the same time. In fact, most evaluations in our consumption profile are based on the degree, to which various alternatives satisfy utilitarian and hedonic goals. A person evaluating a pair of sneakers may care for both functional features (e.g., durability) as well as hedonic features (e.g.,design). Usage and consumption motives are central in determining whether an item is perceived as primarily hedonic or utilitarian. For example, purchasing a cell phone to access help in times of trouble makes a cell phone a utilitarian product. Buying the same phone to chat with friends makes it hedonic.
QUESTION 5
Can Sears be revived? If so what should their new value equation be? If not, explain
As it has been seen, Kmart bought Sears in 2005. The newly formed company became the nation’s third largest retailer behind Wal-Mart and Home Depot. The aim was that the combined firm would allow for greater cost savings and result in lower prices to consumers....