Kmart merges with Sears Free Essay, Term Paper and Book Report
Overview, Current Technology Assessment, and Value Chain Analysis
Kmart Holdings purchased Sears Roebuck in an effort to help the two struggling companies survive by combing their technology. Kmart who had filed bankruptcy several years ago has taking on a new challenge. The two companies merge in a deal valued at about $11 billion, creating the third-largest retailer in the U.S. Kmart's chairman, Edward J. Lampert and Sears Chairman Alan Lacy said that the idea behind the merger is to build up a new company, not tear down an old one. But they also are betting that a new management team can forge a single, lower-cost competitor out of two perennial laggards, which likely will mean selling off some stores and cutting redundant operations. They will combine their operations with a single "great culture," and the two retail chains may exchange both store locations and merchandise brands in the process, said top management. (ONeal, Chandler, & Dresser, 2004).
The new Sears Holdings Corp. will have about $55 billion in annual revenue, and about 3,450 stores, the companies said.......
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