Sears Roebuck in the Twentieth Century: Competition, Complementarities, and the Problem of Wasting Assets

51 Pages Posted: 12 Jul 2000 Last revised: 14 Apr 2023

See all articles by Daniel M. G. Raff

Daniel M. G. Raff

University of Pennsylvania - Management Department

Peter Temin

Massachusetts Institute of Technology (MIT) - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: June 1997

Abstract

Sears Roebuck and Co. faced similar challenges in the 1920s and the 1980s. On the strength of the early period's strategic investment decisions, the company grew into the nation's largest retailer and a pervasive factor in the economy. In the later period, unanswered challenges nearly destroyed the company. We analyze the elements that contributed to the success in the 1920s and to the near disaster in the 1980s and place them in a broader and more systematic context. We argue that successful innovations combine a focus on an attractive market with an exploitation and even enhancement of a firm's existing competitive strengths.

Suggested Citation

Raff, Daniel M. G. and Temin, Peter, Sears Roebuck in the Twentieth Century: Competition, Complementarities, and the Problem of Wasting Assets (June 1997). NBER Working Paper No. h0102, Available at SSRN: https://ssrn.com/abstract=225143

Daniel M. G. Raff

University of Pennsylvania - Management Department ( email )

The Wharton School
Philadelphia, PA 19104-6370
United States

Peter Temin (Contact Author)

Massachusetts Institute of Technology (MIT) - Department of Economics ( email )

50 Memorial Drive
E52-280a
Cambridge, MA 02142
United States
617-253-3126 (Phone)
617-253-6915 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
86
Abstract Views
1,808
Rank
527,705
PlumX Metrics