? stores ? Managing partnership with Amazon ? Shrinking

?      Offering wide product portfolio

?       Managing partnerships with wide brand variety

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?       Designing exclusive merchandise only for Kohl’s

?       Selling high quality merchandise

This activity can be considered the first core activity
performed by Kohl’s. By having exclusive partnerships, Kohl’s is able to design
exclusive products, that are indeed unique. Offering a merchandise mix that is
available only at Kohl’s. 1
This activity is crucial to the delivery of the value proposition and for the
maintenance of the competitive advantage, and can be considered as a
representative activity that characterizes the business that Kohl’s does.

?      Managing physical stores

?       Providing customer service in stores

?       Managing partnership with Amazon

?       Shrinking the store size

?       Opening stores in accessible locations

Kohl’s has 1154 store in 49 states. 2 The
importance of the existence of the physical stores should not be neglected. By
going to the store the customer can directly interact with the brand name of
the retailer, have an experience and in this way create associations and
perception. By having stores, Kohl’s gives the chance to customers to actually
try the goods before buying, and also receive support from the staff if needed.
With the help of the physical stores Kohl’s can enhance the customer’s online
shopping experience by offering a possibility to pick up the ordered item
directly in the store and also receive any assistance if needed. Additionally,
by having physical space, it made possible to make a partnership with Amazon,
offer the empty space for use, and this way to enhance the exclusivity even
more.

?      Offering online shopping experience

?       Selling merchandise available only online

?       Providing easy online shopping experience

?       Improving the mobile app

?       Offering pick-up in store orders

?       Delivering orders from 9 till 9

?       Offering free parking spot

 

Being innovative, Kohl’s also offers their customers to shop
online through the official website which sometimes offers exclusive apparel
which is available only online.3
This activity can be considered crucial for the survival of the company in the
changing world, this activity was added as a response to the customer needs and
development of the technology. By only having this activity the success of the
retailer is not guaranteed, Kohl’s should create more sub activities that will
make customers to choose Kohl’s among all the other websites that offer similar
products.

?      Offering merchandise at discounted price

?       Managing off/aisle shops

?       Offering loyalty programs

?       Providing gift cards

?       Creating considerable savings for customers

The offered merchandise at the discounted
price, can be considered another core activity. This activity makes Kohl’s
attractive for people who would like high quality brands at a price, lower than
regular one. The general idea of saving money is supported by numerous programs
to create even bigger savings for the customer.

Strategic Fit

The presence of the strategic fit
between activities is crucial for the company’s survival, the interconnected
activities that work as an entire system are not easy for the competitors to
replicate, this way the company is protected from the threat that someone will
start doing the same thing.4

Following the designed activity
system map, Kohl’s has created the strategic fit between the activities that
are considered as most important. For example:

The management of the partnerships
with wide brand variety is connected to the sub activities such as: managing
partnership with Amazon and shrinking the store sizes. The sub activity of
designing exclusive merchandise is connected to the sub activity from the online
section, selling merchandise available only online. The activity of offering
the pickup in store of the items ordered online, is connected with the service provided
in stores and supported by the specially designed free parking spots. As Kohl’s
aims to provide pleasant online shopping experience, to support this activity
they are constantly working on the improvement of the online tools. By managing
off/aisle shops, Kohl’s created an opportunity to provide customers merchandise
at even more discounted prices.

In the conclusion, it can be
deducted that Kohl’s is enhancing the main activities that are crucial to the
delivery of the value proposition, with the help of sub activities that are
connected to each other. Kohl’s has concentrated their strategy mainly on the
online shopping, unique partnership and savings for customers. This is a good
move, since those 3 aspects are promised to be provided within the value
proposition.

3. Value proposition

Kohl’s value proposition is To provide wide range of private and national brands of high quality at
affordable prices, both, online and in-store locations. The value
proposition can be split into 4 main features that provide the customer with
the value: wide range of merchandise, high quality, affordable prices and
accessibility.

It cannot be stated that the customer receives more of the
value from one feature than from the other. When looking at the value sources
as separate, there is nothing unique and differentiated about them. The true
value is rather delivered when all those features are combined and work at the
same time, this way, the customer can benefit from a combination of benefits
that creates huge value for them. A weakness of the value proposition, is that
there is no added value that a customer can get. All for characteristics are
connected and leverage each other’s value.

1 Annual report

2 Annual report

3 Admin. “Omnichannel Shopping
Experience.” Omnichannel Experience,
corporate.kohls.com/company/omnichannel-experience.

4 Understanding Michael Porter. Boston, Mass.:
Harvard Business Review Press, 2012. Print.