3-13 Analyze Sears, through the value chain models and competitive forces.
Sears decline may be attributed to increasing competition from new entrants and direct competitors, and prevalence of substitute goods like online shopping. Through the internet, customers have acquired bargaining power, hence, for a business such as Sears, the primary selling point is the bargain or price. In value chain model, Sears has managed to utilize technology to improve the internal processes. However, when it comes to principal activities like marketing, services, and sales, it raises a red flag since people know it is declining. It was because of weak performing stores and poor branding.
3-14 What was the problem facing Sears? What people, technology, and organization factors contributed the problem?
The main concerns are a deteriorating brand image and store network that do not resonate with present customers.
People. The decision makers were putting a lot of resources to technological innovations and brand management, but Sears’s management culture and vision gave it tunnel-vision.
Organization. For Sears to implement the business strategy with the use of energy, the firm should work in unison. However, Sears’s organizational culture and brand are out of sync with the vision.
Technology. Sears used technology to mine for consumer’s data while they should have focused on improving their brand image.
3-15 Which answer did Sears choose? What is the function of technology in the solution?
Technology has been the focal point of Sears’s solution. The used data analytics to know how their stores are arranged. They continue to invest in consumer electronics department and apply radio frequency tags to facilitate efficiency for inventory…