What core competencies do you think the company has and what is needed to exploit opportunities and counter threats. As the previous SWOT analysis revealed, Kmart has the potential to break out of its current position of being closed. To exploit opportunities and counter threats, Kmart must leverage these skills to strengthen its position and counter internal weaknesses in the face of the industry's biggest threat: increased competition in a mature market. Some core competencies that need to be leveraged are: The Kmart brand is an existing, well-known and trusted national brand in the United States, Kmart offers well-approved private label and branded clothing. Infrastructure Kmart has a large number of conveniently located, low-cost leased stores in urban areas remote from competitors throughout the country (Appendix B). Market confidence at Kmart is created by the achievements of its staff and management. Thanks to the turnaround strategy put in place, new blood has been injected into the upper management structures. Any renewals will result in layoffs as unprofitable stores are closed. This can be an opportunity to retain and move high-performing staff to where they are needed and to get rid of non-performing staff. Anderson, the Kmart chairman, is well supported by Wall Street and the board. These new staff members come into the business with the skills to solve problems in some previously poorly managed areas, such as inventory control and merchandising. Store locations, store layout and performance conveniently located away from competitors like Wal-Mart and Target, therefore less to compete for customers face-to-face. There are 250 non-performing stores that have already been identified as more profitable to close than to maintain operating costs. Expertise exists in-house for planning the layout and appearance of the store to cater to different customer segments. This concentration of efforts will focus on key areas where Technology Kmart has already invested in good retail systems. The system can be used to control inventory, supplier payments, track customer purchases and monitor revenue against profit margins across all stores. Research and Development The planning department is well established and cross-functional to provide diverse perspectives. The planning department, to ensure that strategies at all levels are executed, can make greater use of access to past data and knowledge of changes in purchasing patterns. Financial support JP Morgan Chase has agreed to support Kmart to avoid the current threat of closure due to bankruptcy.