Target Corporation Term Paper

3310 Words Jul 1st, 2012 14 Pages
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Four Arenas of Competition

Cost/Quality
Target achieved its differentiation in the marketplace by positioning its products and store experience as higher quality than its main discount competitors Wal-Mart, with lower prices than department stores. Target’s main focus is QUALITY product and at a LOW PRICE. It all began with the idea of, “fashionable, smart design…delivered at a competitive discount prices.” Target strives to deliver to customers a unique shopping experience. Target grabs customer’s attention by their big red bulls eye and customers keep going to target. But at the same time Target need to make sure that their shelves are stocked, they gave good customer service
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Target also started its own private brand of grocery products in an effort to earn higher margins and have greater control over product development, which were called Archer Farms and Market Pantry. Target has always been on top of things to make sure they are making the revenue and also competing with the market and competitors.

Strong Holds
For Target to have their own private and designer label like Mizrahi and Missimo for apparel, Calphalon for cookware, Philippe Starck for seating products, and Sonia Kashuk for Cosmetics are strong holds. These private labels make Target a stronger company and shows how they are still working towards great quality products. Target also expanded its internal product development unit, which developed relationships with external vendors, some of which simply supplied Target with goods, other who collaborated with Target design and product development. Later on Target also developed their own private label of grocery products to earn higher margins and have greater control over product development. These strong holds make Target move attractive and show the dedication that the company wants to grow.

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Macro Environment

An organization’s macroenvironment consists of nonspecific aspects in the organization’s surrounding that have the potential to affect the organization’s strategies. Macroenvironmental variables include…