Question

What external factors contributed to sears organization's failure?

Answer 1

The major factors that contributed to the failure of Sears are as follows:

• The rapid changes in technology and no innovative steps taken by the Sears led to its failure. In any business, it is important to keep pace with the changing technology and upgrade as per that. It becomes inevitable to avoid technological changes taking place in the external business environment.
• The competition from the retail giants like Wal Mart and Kmart increased and led to great pressure on the Sears that resulted in its downfall.
• It also failed to adopt the changing trends in the retail industry. People drove convenience by ordering from their competitors. However, Sears couldn't do well in the e-commerce segment.
• Another contributor was the diversification of the product line. It was initially known for the Men's products and later it diversified into the women segment. It also diversified to totally different segments like appliances, investments, Banking, and real estate. This can be done due to the external forces in its business environment and competition.
• the next reason was merging with the already bankrupt Kmart that made the business scenarios worse for Sears.

Thus, all these reasons collectively contributed to the downfall of Sears.