Target Swot Analysis Essay

864 Words4 Pages
Jeaneen Pitts Target SWOT Analysis and Porter’s Five December 3, 2011 The purpose of this paper is to discuss Target’s strengths, weaknesses, opportunities and threats. This paper will also talk about how Porter’s Five affects Target’s business decisions. Target’s mission statement: “Our mission is to make Target your preferred shopping destination in all channels by delivering outstanding value, continuous innovation and exceptional guest experiences by consistently fulfilling our Expect More. Pay Less brand promise.” ( Strengths: One of Target’s strengths is that it’s one of the largest retail outlets. Target is a one stop shop for its consumers. Target…show more content…
Target also allows famous designers to design products for their stores that are offered for a limited time. ( Threats: With the down turn in the economy, many consumers have turned to Dollar General and Dollar stores; this has caused a decrease in Target’s revenue. Another threat is Wal-Mart and their ability to offer lower prices on their products compared to Target which makes them the low cost leader. ( Target also deals with the threat of unionization of their employees. Many employees have expressed concern regarding low wages paid by Target. Like Wal-Mart, Target is against unionization because they believe that employee issues should and can be resolved without third party mediation. ( Porter’s Five Forces Analysis Michael Porter wrote about five forces affecting the profitability and viability of companies. The five forces are existing competitors, new entries into the market, substitute products, bargaining power of customers, and the bargaining power of suppliers. (quickmba) Competitors Wal-Mart’s is one of Target’s biggest competitors, but other retailers are also trying to compete, such as Sears, Dollar General, and Amazon. Although Target caters more to a more upscale clientele, it still carriers many of the same items as Wal-Mart. Target is not able to compete internationally with Wal-Mart since all of stores are in the U.S. but by 2014, they will have about 150 stores
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