Target Corporation : A Threat Threats On Its Horizon

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Executive Summary Target Corporation has some new imminent threats on its horizon. Its challenge continues to be the problem of competing with Wal-Mart, Costco, and other huger retailers that are front runners. In order to decrease the risk posed to revenues by internal rivalry in the discount retailing industry. The key issues: growth and differentiation. Target has grown at a normal pace in the past with some of it coming from organic growth. The obvious areas in which Target should concentrate its expansion are markets, where there are plenty of attractive locations with no Target stores. Due to location limitations and higher cost of buildings and land, most town areas have largely been untouched. Target should be…show more content…
Such incidents could adversely impact on opinions and lead to noticeable effects on business like customer boycotts, decrease sales, team fellow retaining, and recruiting complications. For example, Data Breach that occurred in the final quarter of 2013 resulted in weaker than estimated sales instantly which affected reputation and adversely crushed sales for a period of time and a bigger impact on Customer faith regards to their financial data which could have a prolonged effect. Data Breach The company mostly counts on computer systems to manage the account, process visitor transactions, review and examine outcomes. A minor damage or interruption from communications failures, computer viruses and mischievous attacks, security breaches and disastrous events could adversely affect operations. In Q1, revenue fallen down by 2.3%, in Q2, by 1.3%, whereas in Q3 from 0.4% for the year 2014 due to the data breach. Due to lesser promotional activity compared to the highly promotional activity in 2014 after the Data Breach, a satisfactory category sales mix and lower price cutting, there is Rise in gross margin rate from 29.5% last year to 30.4 percent this year. Assertions and investigations may effect on the business and results of operations. If company experience additional data breaches or fail to detect on time, the company could be
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