Target's Success: A Case Study

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.

Every business has stakeholders, people who influence and are influenced by the business. Target works to ensure that all stakeholders are part of their mission and culture. According to Target’s website, they know that their stakeholders have a monumental influence on their company. That is why they listen to their needs, ideas, and concerns (Target, n.d.). A few of their different types of partners include: education, environmental, well-being, safety and preparedness, responsible sourcing, and diversity and inclusion partners.(Target, n.d.). Target identifies with many different partners that help improve Target’s reputation and overall connection with society.

Target Corporation (NYSE:TGT) is the leading large-format general merchandise and discount retailer in the U.S., challenging Wal-Mart in electronics, toys and apparel while also seeking to differentiate with higher-end fashions and products for an upscale audience. As of the close of their latest fiscal year (FY2011), Target operated approximately 1,760 stores encompassing 233,000 square feet in 49 states and the District of Columbia. The company is divided into the retail and credit card divisions and moves the majority of its products through a highly integrated network of 37 different distribution centers, which include four food distribution centers. Target is one of the most well-entrenched large format retailers in the U.S., has the ability to manage their pricing strategies at a level of accuracy and precision that is comparable to Wal-Mart (Henderson, 2001). Unlike Wal-Mart, Target concentrates on a value-based message that concentrates on quality and price differentiation to sustain their gross margins while Wal-Mart concentrates on supply chain efficiency and a continual reduction of supplier and transaction costs (Krishnamurthi, 2001).

Every company will focus on supplying a service, product, or both. How and where the product is made plays a crucial role in the company’s success. In order to help visualize how the products are made process maps are formatted. These process maps can help to identify areas that need improvement. In order to implement improvement, process development will be implemented. The form of good that a company supplies is also important and to ensure that the best product is distributed product development is conducted. Target Corporation is a complex company, which provides consumers with their necessities.

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.

While Target is more of a high end discount store, from walking through any one of the locations one could easily get the feeling that the company is putting forth a lot of effort into competing with Wal-Mart. The retailer’s target customers are educated young adults in their mid 20’s and early 30’s. Many of the customers in this targeted segment are experiencers and achievers. According to the VALS survey experiencers are avid consumers

Target Corporation is known worldwide as a large retail chain that brings in millions of dollars each fiscal year. The ability to remain competitive in a saturated industry could prove difficult to some retailers, but Target remains one of the leaders in the retail market. With success comes risk. Target Corporation competes against online retailers as well as “big box” stores to remain competitive.

Target Corporation has various strengths that enable it to maintain its market share despite the competition in the market industry. First, Target Corporation is the second

Target Corporation uses energy conserving Windows, low wattage bulb fixtures, motion sensors and refrigerator that earns energy stars as well as saves energy cost through these initiatives (Target Sustainability, 2015). Target Corporation energy efficient sustainable building is a commitment to support community and environment using solar energy. Solar energy generation eases the burden of the local power supply company. The more Target Corporation leads with an environmentally sustainable initiative, the Target Corporation brand name becomes popular and more people aware of the brand within the community (CSR, 2014). Target Corporation focus on the growth also based on the customer convenience by building urban stores near mass transit saving an enormous amount of transportation cost and lowering carbon footprint. These urban stores bring more traffic and more sales outperforming the competitors in the same area.

One of the largest examples of a technological privacy violation in history was the Target data breach of 2013. The Target Corporation is one of the leading innovators of the retail industry. They introduced the concept of designer partnerships, making them one of the leading clothing stores in the country (Corporate Target 1). Unfortunately, the company was targeted by Russian hackers shortly before the Christmas of 2013. In this hack, personal information, including customer names, mailing addresses, phone numbers, email addresses and credit card information, of seventy million people was stolen and used for fraud (Forbes 1). This has raised concerns over how well the company can ensure that their consumer’s privacy is protected.

If the author could make any recommendations for Target to use in the future, it is to implement what they have already done. If Target can continue to flourish and still try new ventures, then that is what they should do. As long as they try new ventures with past experiences in mind, the company should be successful no matter what. Target has a great reputation in the business community and amongst its loyal customers because of how they choose to operate. It only makes sense for them to continue to operate based on their customer’s needs, their community’s needs and their shareholder’s needs.

Target revised, estimated2009 depreciation expense is lower because of the longer average useful life of Walmart’s assets.

This report examines Target Corporation’s performance in a detailed strategic audit. The audit includes an external, internal and strategic analysis as well as a recommended course of action. The findings of the audit recommend a robust on-line/mobile presence to complement in-store sales, and to increase future earnings to remain competitive by building upon physical assets, brand value and logistical capabilities.

Target Corporation has recognized itself as one of the top retailers in the United States market on the basis of excellent service quality, customer experiences, operational excellence, strong financial position, and a wide array of product offerings. Through its high degree of service orientation at physical outlets and adoption of fair business practices, Target Corporation has become the most distinctive retailer in the eyes of its potential customers. Being one of the top-notch retailers in the United States, Target Corporation has to carefully strategize on its business operations and marketing tactics so as to keep itself in the row of competitive brands of the industry.

Target Corporation is a well-known American discount retailing company, founded in 1902 and is headquartered in Minneapolis, Minnesota. It is the second-largest discount retailer in the U.S. (Walmart being the largest) (Target, 2014). Target’s analysis will provide an insight into the corporation and its working. It look at and evaluate it in terms of terms of its effectiveness in each of these areas, such as: the structure, goals, agendas, boundaries, control, culture, politics, and decision-making processes. Based on the evaluation, this paper will help to provide suggestions for improvements within the different areas, if the need arises.