Target Corporation : Strategic And External Environment

1236 Words5 Pages
Target Corporation Headquartered in Minneapolis Minnesota, Target Corporation is one of the largest chains of retail stores in United States and Canada (Stone, 1995). Founded in 1902, the chain now has more than 360,000 employees worldwide. The company operates nearly 1925 stores out of which 1795 stores are in the US and 130 stores are in Canada (NASDAQ, 2014). The business prides itself in a diverse portfolio of merchandise that their outlets houses, ranging from dry groceries to electronics, furniture, apparel and much more. Its distribution networks make use of third party vendors, direct shipping as well as distribution centers. It also operates a successful e-store which offers customers a virtual one-stop shop for their needs. The aim of this paper is to highlight the strategic position of the company with an overview of its internal and external environment. The study of its strategy, design and other forces, one can easily gauge why and how target has managed to become the retail giant it is today. Strategic Analysis- Target Corporation Business model The business model adopted by Target Corporation is that of a traditional physical value chain model (Hamilton & Selen, 2006). It incorporates the flow of five elements namely inbound logistics, operations, outbound logistics, marketing &sales and customer service. Pest analysis Political: the political environment plays a great role in shaping the retail industry. Regulations that help in cost savings or
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