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Book Reports
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| Number of pages / Number of words: |
4 / 1063 |
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It needs to be determined whether the loan terms are compatible with the company's profitability objectives.
The single largest threat to face Kmart is from the fact that discount retailing is a mature industry, with many competitors, a few of which are large and cater for differentiated market segments with better profit margins...
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It is also true that " the affect of these conditions was that many of the discount retailers went bankrupt and others such as Woolworths withdrew or divested interests in the discount industry completely. Increased competition in price and specialization retailing meant that Kmart was growing at a slower rate than competitors, making lower margins and not moving stock quickly enough...
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