Chapter 3, Problem 14CSQ

Explanation of Solution

The problems faced by the Sears are:

• The use of information technology could not bring any competitive advantage as the cost of the product was one of the highest prices available in the market.
• The improvement which was made in the Sears, could not bring any competitive advantage and Sears was lagging in decreasing the cost of operation, maintaining the current trend of merchandizing and remodeling their stores that were located in unwanted areas and were shut down.
• Sears struggled to get some viable business strategy so as to overcome their losses.

Contribution of people, organization and technology:

• People:
  • In 2009, Sears opened a test store named as Mygofer which did not stock items for sale. Shoppers used to place their orders in the front of the store and collect the order at a delivery bay out back...