? Offering wide product portfolio? Managing partnerships with wide brand variety? Designing exclusive merchandise only for Kohl’s? Selling high quality merchandiseThis activity can be considered the first core activityperformed by Kohl’s.
By having exclusive partnerships, Kohl’s is able to designexclusive products, that are indeed unique. Offering a merchandise mix that isavailable only at Kohl’s. 1This activity is crucial to the delivery of the value proposition and for themaintenance of the competitive advantage, and can be considered as arepresentative 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 locationsKohl’s has 1154 store in 49 states. 2 Theimportance of the existence of the physical stores should not be neglected. Bygoing to the store the customer can directly interact with the brand name ofthe retailer, have an experience and in this way create associations andperception.
By having stores, Kohl’s gives the chance to customers to actuallytry 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 onlineshopping experience by offering a possibility to pick up the ordered itemdirectly 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 evenmore.? 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 shoponline through the official website which sometimes offers exclusive apparelwhich is available only online.3This activity can be considered crucial for the survival of the company in thechanging world, this activity was added as a response to the customer needs anddevelopment of the technology.
By only having this activity the success of theretailer is not guaranteed, Kohl’s should create more sub activities that willmake customers to choose Kohl’s among all the other websites that offer similarproducts.? Offering merchandise at discounted price? Managing off/aisle shops? Offering loyalty programs? Providing gift cards? Creating considerable savings for customersThe offered merchandise at the discountedprice, can be considered another core activity. This activity makes Kohl’sattractive for people who would like high quality brands at a price, lower thanregular one. The general idea of saving money is supported by numerous programsto create even bigger savings for the customer.
Strategic FitThe presence of the strategic fitbetween activities is crucial for the company’s survival, the interconnectedactivities that work as an entire system are not easy for the competitors toreplicate, this way the company is protected from the threat that someone willstart doing the same thing.4Following the designed activitysystem map, Kohl’s has created the strategic fit between the activities thatare considered as most important. For example:The management of the partnershipswith wide brand variety is connected to the sub activities such as: managingpartnership with Amazon and shrinking the store sizes. The sub activity ofdesigning exclusive merchandise is connected to the sub activity from the onlinesection, selling merchandise available only online. The activity of offeringthe pickup in store of the items ordered online, is connected with the service providedin stores and supported by the specially designed free parking spots.
As Kohl’saims to provide pleasant online shopping experience, to support this activitythey are constantly working on the improvement of the online tools. By managingoff/aisle shops, Kohl’s created an opportunity to provide customers merchandiseat even more discounted prices.In the conclusion, it can bededucted that Kohl’s is enhancing the main activities that are crucial to thedelivery of the value proposition, with the help of sub activities that areconnected to each other. Kohl’s has concentrated their strategy mainly on theonline shopping, unique partnership and savings for customers. This is a goodmove, since those 3 aspects are promised to be provided within the valueproposition.
3. Value propositionKohl’s value proposition is To provide wide range of private and national brands of high quality ataffordable prices, both, online and in-store locations. The valueproposition can be split into 4 main features that provide the customer withthe value: wide range of merchandise, high quality, affordable prices andaccessibility.It cannot be stated that the customer receives more of thevalue from one feature than from the other. When looking at the value sourcesas separate, there is nothing unique and differentiated about them.
The truevalue is rather delivered when all those features are combined and work at thesame time, this way, the customer can benefit from a combination of benefitsthat creates huge value for them. A weakness of the value proposition, is thatthere is no added value that a customer can get. All for characteristics areconnected and leverage each other’s value.1 Annual report2 Annual report3 Admin. “Omnichannel ShoppingExperience.
” Omnichannel Experience,corporate.kohls.com/company/omnichannel-experience.4 Understanding Michael Porter. Boston, Mass.
:Harvard Business Review Press, 2012. Print.