What core competencies do you think the company has and what is needed to exploit opportunities and counter threats. As revealed by the SWOT analysis above, Kmart has the potential to exit its current position facing closure. To capitalize on opportunities and counter threats, Kmart must build on these competencies to strengthen its position and counter internal weaknesses against the industry's biggest threat: increasing competition in a mature market. Some key competencies that need to be leveraged are: The Kmart brand is an existing, well-known and trusted national brand in the United States, Kmart has a well-approved private label and designer clothes. Infrastructure Kmart has a large number of leased, low-cost, well-located stores in urban areas remote from competitors across the country (Appendix B ). Staff Market confidence in Kmart is created by the results achieved by staff and management. With the turn-around strategy in place, new blood has been injected into the top management structures. In any renovation there will be downsizing as unprofitable stores are closed. This can be used as an opportunity to retain and move high-performing staff to where they are needed and to eliminate under-performing staff. Anderson, Kmart's president, is well supported by Wall Street and the board of directors. These new staff members come into the company with the skills to address problems in some areas that were previously poorly managed, such as inventory control and merchandising. Store locations, layout and performance Stores conveniently located far from competitors like Walmart and Target, therefore less able to compete for face-to-face customers. There are 250 distressed shops which have already been identified as being cheaper to close than to continue with running costs. Internally, there is expertise in planning the layout and appearance of the store to cater to different customer segments. This concentration of efforts will allow you to focus on key areas. Kmart Technology has already invested in good retail systems. The system can be used to control inventory, vendor payments, track customer purchases, and monitor revenue versus profit margins across all stores. Research and Development The planning department is well established and cross-functional to provide various perspectives. The planning department can further utilize access to past data and knowledge of changes in purchasing patterns to ensure that strategies at all levels are executed. Financial support JP Morgan Chase has agreed to support Kmart to avoid the current threat of bankruptcy.