kmart and sears IT integration [Sears Holdings]
Question 1:Discuss the reasons why IT integration between sears and kmart will be delayed.Is this correct procedure?why or why not?
1. Since it is given that kmart has three inventory management systems,five logistics management systems,five supply chain management systems,and four merchandise planning systems and Sears has five inventory management systems,four logistics applications,five supply chain systems,and six merchandise planning systems,integrating such huge systems of both companies is a huge task which requires ample amount of time.
2. Since they are already back in the competition when compared to Wal-mart and Target,they cannot spend much of their time in IT integration as this would increase their competing margins.
According to me, this is not a correct procedure.Inspite of their integration it would take long time for them to cope up with Wal-mart and Target and hence they can take competitive advantage and apply synergy in technology and this would again bring more loss to Sear Holdings.In my opinion it is better for Sear Holdings to apply differentiation strategy to compete with efficient companies in modern business environment.
Question 2:What advantages does Wal-mart have over Sears Holdings?
- Wal-Mart are implementing well advanced technologies[RFID tagging] to track their products and hence increase their niche.
- They have well built foundation and by the time Sears holdings come up with the new integrated systems and plans its strategy, Wal-mart can come up with new innovations and attract the customers.
- By implementing synergy in technology Wal-mart can make sure that they don't loose their regular customers and can have strong hold in the market.
Rajani B.V
1MS07IS076
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