What is the major focus of this case?

The major focus of this case is the strategies that the companies use to respond to their external environment as well as the moves of their competitors. The key point that has been highlighted in this case is that no competitive advantage remains forever. Therefore companies need to be very vigilant regarding the trends in the market because they change. Inability to change or not being able to feel the pulse of the changes can lead a company to lose sales and hinder its performance. In order to survive and remain competitive companies should constantly look for ways to reinvent themselves or look for new avenues to bolster sales. In doing so they should focus on their core competencies which cannot be easily imitated. In the following case Albert Martinez decided to introduce Sears as a moderate type departmental store that focused at middle- American moms. It introduced apparels to cater to this particular group. But as changes started to occur in the fashion industry the very focus of the company started to become a liability. Thus the next CEO Alan lacy decided to focus on products that were less vulnerable to drastic changes such as home appliances. He made a calculated move that even if other competitors moved in to take share of that segment Sears would still remain on top because it had the largest repair fleet.

What lead to change at Sears? (triggers of change)

The fact that Sears was losing money and sales were declining as a result of making bad acquisition decisions of Allstate Insurance and Dean Witter Brokerage. These companies shifted the companies priorities and was also absorbed the company’s resources. They were proving to be more of a burden than an asset. Thus it was necessary that Sears instigated some change to get out of the mess and compete effectively. In the second leg the decision of Albert Martinez to focus on women apparel was met with utter surprise of shift of fashion trends. Since Sears did not anticipate this change it was not prepared for it. Meanwhile other companies like Wal-Mart and Target stole market share from Sears. This was another incident where change was required to turn the company around.

What changes were introduced? (targets of change)

In order to recover from the bad acquisition decision the new CEO Albert Martinez decided to get rid of the Dean Witter Brokerage and all state insurance so that it could free some cash and focus on reinventing Sears. To make sears more competitive Martinez clearly assessed that the apparel industry for Middle American moms seemed to be booming. He therefore shifted the focus of Sears to cater to this segment and it proved to be successful. However later changes started to occur in this segment leading Sears to miss a lot of fashion trend changes. This enabled competitors like Wal-Mart and Target to displace Sears from the leadership position. It was again felt that a change was required to get Sears back to the top. In response to this undesirable situation Martinez stepped down and former CFO of the company Alan Lacy was put into the position of CEO. Lacy then intended to shift Sears focus to home appliances as it was a segment that was less vulnerable to overnight changes and Sears also enjoyed a stronghold in this segment owing to the fact that it had well established repair fleet which competitors couldn’t easily match.

How would you evaluate the outcome of change program?

The outcomes had been fruitful. As a result the company managed to revert its declining sales and lost leadership position. However in my opinion it would have been better if the company made a clear assessment of their strengths and weaknesses first and that of their competitors as well. Then they needed to assess how long they could be playing in that competency. They should also have analyzed upcoming trends and changes in the marketplace so they could have a backup plan if changes did occur. Likewise they should also have devised counter strategies for any anticipated changes of their competitors.

What future strategy should Sears follow?

Sears should try out new avenues like online stores which it rightly did. It has to find out ways to reach existing and potential customers through the web. Likewise it should also retain its focus on a segment and ensure sufficient barriers exist for competitors to proliferate. It should focus on building stronger distribution channels. For that it has to build stronger collaborative networks with suppliers. A supply chain management system could be a better choice to tie supplier commitments. It should also focus on delivering maximum value to its customers through developing of mechanisms to build rapport with the customers and finding out of their requirements. In the process it could come out with schemes that focus on various segments of customers and not being attached to a limited group. My final suggestion would be to retain a primary focus and to improvise on other segments to snatch market share from other competitors.

What conclusions about change would you draw from this case?

After having read the case what I can clearly infer is that organizations big or small should be vigilant about their environments that are always changing. A changing environment presents new opportunities and threats. Organizations should always be prepared to change and shift their focus if required to maintain its competitiveness. Organizations should also be performance oriented and should constantly strive to maintain its brand value and customer expectations. It should also explore new avenues to further strengthen its competitive position. It should keep track of competitor moves as well and create long lasting competitive advantages.