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The biggest mistake Kmart made in creating a business strategy

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Phil McGraw, better known as Dr. Phil tells the guests on his television show that “You cannot change what you do not acknowledge”.

Until you are ready to admit your threats and weaknesses you cannot overcome them.

Not only is this important in our personal lives it is important in our business strategy. Not admitting the threats on a business by competitors is the biggest mistake in the business world.

Kmart was once the largest discounter in the United States. Chairman Joe Antonini set a goal for the then Michigan based retailer to overtake Sears, Roebuck, and Company to become the largest retailer of all types. However Antonini failed to admit that Walmart was a threat as they were solely focused on Sears.

Others warned him that Walmart's prices were much sharper than Kmart's and that their everyday low pricing was popular among the regional chain's customers. Antonini never developed a strategy to compete.

The same year that Kmart overcame Sears in annual sales Walmart overtook both chains with their everyday low pricing strategy. Kmart never admitted pricing was a weakness thereby allowing Walmart the victory Kmart never enjoyed.

In addition to his work in television, McGraw is a best-selling author. His books are self-help best-sellers such as “Life Code: The New Rules for Winning in the Real World” and “Self Matters: Creating Your Life from the Inside Out”. Like his TV show, these books demonstrate practical advice presented in humorous illustrations that produce a real impact in the life of the reader.

© Max Impact, used with permission.

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