Sear which was one of the biggest retailers in the United States of America has filed for bankruptcy which caused the 142 stores around the US to be shut down. For the past few years the Sear company was going down and it was just surviving on the CEO Eddie Lampert’s own money. The reason behind the Sear company to file for bankruptcy is that the company could not get all the investors on board due to which there was lack of trust between the investors and the vendors which caused many stores of Sear to be badly affected like there have been stocking issues in almost all the stores. This was the main reason that even the customers stopped going for those stores which resulted in downfall of the one of the America’s biggest retailers.
The other reasons which created a downfall for the company was that due to oncoming of new big competitors at that time like the Walmart which was highly invested in opening stores around the United States of America because the company had good funding which the Sear lacked big time. Then another competitor came along which was Target, it also started opening stores which highly affected Sear’s customer base.
The company did not try to adapt to the new market and also it did not have enough funding to do that. When there was introduction of online shopping by Amazon corporation then it was a big blow for all the big retail stores like Sear, Target and Walmart because it changed the whole game of shopping dynamics.
The biggest affect was on the Sear company which was already surviving in the market due to its competitors but now there was another player in the market which eliminated the concept of physically shopping in Mega store, this was the concept that many retail stores were thriving on. The net worth of all these Mega retail stores starts to drop which resulted in Sear declaring the bankruptcy as it could not even afford to stay alive. The CEO and some of the investors did try their best to make the company survive but it was too late.
Companies have to adapt to the new market otherwise it is a matter of time the biggest companies of a time will go bankrupt in today’s time which is the time of highly innovation due to advanced technology. Amazon corporation is going high with its diverse interests in the market which results in that Amazon is one of the most expensive and strongest company on the world. Companies like these know when to change their models and approach according to the market which is the main reason behind the success of so many companies that are a century old but still moving on with the new dynamics of the market. Companies have to back innovation as it is useful for them to survive the market.
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