1. Case Analysis on Sears By: Jeffery T. Pelletier

2. Company Description Retail giant: Retail giant: Employees 275,900 Employees 275,900 160,000 Investors 160,000 Investors Product lines: Product lines: Appliances Appliances Sears Kenmore Brand name appliances Sears Kenmore Brand name appliances Lawn and Garden Lawn and Garden Sears Craftsman Brand name lawnmowers and snow blowers Sears Craftsman Brand name lawnmowers and snow blowers Home electronics Home electronics Tools Tools Sears Craftsman Brand name tools Sears Craftsman Brand name tools

3. Company Overview Retail giant who is struggling with identity crisis. Retail giant who is struggling with identity crisis. Started as a mail order company in late 1800s Started as a mail order company in late 1800s Merged with K-Mart Merged with K-Mart Problems causing company to fall behind: Problems causing company to fall behind: Struggling in CRM Struggling in CRM Struggling with supply chain management Struggling with supply chain management Problem between company leaders over issues dealing with how business runs. Problem between company leaders over issues dealing with how business runs. Spent millions of dollars to reposition themselves. Spent millions of dollars to reposition themselves.

4. Sears Contribution to Society Started Sears American Dream Campaign: Started Sears American Dream Campaign: Have raised nearly $100,000 to help people finance and afford homes. Have raised nearly $100,000 to help people finance and afford homes. Focus on home and family and the community. Focus on home and family and the community.

5. Sears Problems CEOs blaming other CEOs of poor management. CEOs blaming other CEOs of poor management. Cause customers to shy away from doing business at Sears. Cause customers to shy away from doing business at Sears. Not good for investors opinions. Not good for investors opinions.

6. Sears Problems Continued Poor CRM results in customers turning elsewhere Poor CRM results in customers turning elsewhere Poor Supply Chain Management resulted in miscalculated inventories and high shrinkage. Poor Supply Chain Management resulted in miscalculated inventories and high shrinkage. Big competition taking sales away: Big competition taking sales away: Wal-Mart Wal-Mart Target Target Home Depot Home Depot Lowes Lowes

7. 2003 Profit Rank of Major Retailers

8. How E-Business Relates to E- Marketing Strategies Products available on line at www.sears.com Products available on line at www.sears.com www.sears.com Establishing Extranet between all components of company to improve things like Inventory and customer information Establishing Extranet between all components of company to improve things like Inventory and customer information Getting closer to customers with the national web site. Getting closer to customers with the national web site. Improving CRM Improving CRM

9. Value Bubble Two Phases of Value Bubble used: Two Phases of Value Bubble used: Engaging Phase Engaging Phase Retaining Phase Retaining Phase

10. Engaging Phase Promotions Promotions Huge Christmas Sales Huge Christmas Sales Web Site improvements that allows customers to speed up search time: Web Site improvements that allows customers to speed up search time: JavaScript JavaScript CSS CSS Html Html

11. Retaining Phase Extended Warranties Extended Warranties Price Matching Price Matching Improved CRM Improved CRM

12. Key Factors in Company Improvement Required training of Sears employees Required training of Sears employees Placement of right employees at right times Placement of right employees at right times Increase employee job satisfaction rates Increase employee job satisfaction rates Results of Company improvements: Results of Company improvements: Greater asset margins Greater asset margins Better investment opportunities Better investment opportunities More revenue growth More revenue growth

13. Conclusion Will probably succeed because of storied past Will probably succeed because of storied past Finally striving in right direction to compete Finally striving in right direction to compete Improved CRM techniques and internal technologies results in company improvement. Improved CRM techniques and internal technologies results in company improvement. Questions????? Questions?????