Walmart Case study Essay

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. (ehow.com)

Target’s brand strategy is working very well. Although their image has changed in a positive manner over the past few years, they have remained true to their image of being an affordable alternative to other department stores. The consumers have, and more than likely will continue to enjoy the collection of items provides in their stores. The strategy has been to provide cheap alternatives, but with the introduction of private brands, Target has been able to bring in a whole different demographic. They have done a good job balancing the affordable to quality ratio. This strategy has provided a solid profit across the Target stores.

Target Corporation’s 2007 annual report to stockholders keys in on a few main points. The first main concern was that overall financial performance in 2007 fell short of expectations largely due to slowing sales and earnings growth in the second half of the year. But, despite the slowing economy, Target remained focused on continual investment and growth in the business. Over 100 new stores, including 33 SuperTarget® stores were opened in 2007. Investments were made in technology and

After the recession, Target’s value proposition shifted to simply offer affordable options in a wide array of product areas. However, now with better economic conditions and without the ability to offer lower prices than its affordable retail competitors, such as Walmart, and in order to stay relevant and refresh the company, Target needs to reposition itself as the high-quality concept and style-oriented retail store it was once known for.

The retail industry is one of the largest industries in the world, by business numbers and employees. Plunkett Research Ltd. As of 2011 Wal-Mart was still the giant of the retail market. As Wal-Mart nearest competitor Target heats up the market, Target seems to be gaining in customer loyalty and has picked up on Wal-Marts grocery strategy. According to the Plunkett report, recession ravaged consumers not only want dry goods at a discount, but they also want groceries discounted (PlunkettResearch.Com, 2012). Target also has been gaining customers who want stylish well organized stores that appeal to their senses.

Wal-Mart and Target are both discount BIG BOX retailers which have made the most of their strengths and have drawn upon the differences in their customer bases, product mix and business strategy. Even though both

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.

For over 50 years, Target has provided American consumers with quality products delivered with “a unique shopping experience” (“About Us”, 2015). The retailing giant, second only to Walmart Corporation, secured a Fortune 500 ranking of 36 this year making them one the Top 100 companies in the U.S. (“Target”, 2015). 2014 was a tough year for the company marked with many pivotal moments including the installment of a new chief executive officer.

Given that Target Corporation prides itself on being a discount retailer, it is inherit that there are certain built-in advantages over other retailers. This is especially true during challenging economic times. Target Corporation’s main goal is to provide higher quality products under their brand name at a discounted price. In comparison, Target’s two closest competitors, Wal-Mart and Costco, carry lower quality products as their brand name. Therefore, consumers who desire discount prices, but higher quality merchandise knows that Target is

Target’s industry is the retail industry. The overall outlook for this industry is positive. According to Nielsen’s Global Consumer Confidence Trend Tracker, the industry is looked upon in a “cautiously optimistic” fashion, especially in North America. In 2013, the industry was not doing very well (only 70% of retailers claimed to be as optimistic then as the 82% of retailers who feel that way now), but it has since recovered.

Ask just about anyone on the street what company boast a large red bulls-eye on its stores, and surely it would be difficult to find anyone who doesn’t immediately respond, “Target.” Target Corporation’s roots stem all the way back to 1902, and in the years since, the corporation has grown into a common household name. With 1,790 (2014) stores nationwide, Target is currently ranked as 4th largest retailer in the United States (Press). The corporation has achieved this status through hard work, brilliant ideas, and dedicated leadership. However this is just the brief on their success.

Over the years Target has established itself as the second largest discount store in America. Falling behind Walmart, Target has experienced periods of strong growth but has recently encountered problems that have caused concern with those within the organization as well as external analysts. One of the biggest problems Target is facing currently is generating consistent customer traffic into its stores as many of their major departments are continuously loosing money and causing customers seek out other product alternatives. A major contributor to this problem is that it is spreading itself thin by offering too much without establishing a competitive advantage and not firmly establishing itself in denser city locations.

Although Target, as a whole, is one of the most successful department stores in the industry with total revenues of 72.7 billion United States dollars as of January 1, 2015 (“Target Corporation Company…”). However, even with revenues as significant

Mars, formally the chief administrative officer for Wal-Mart in the United States, stepped down. Jose Luiz Rodriquezmacedo Rivera, once the general counsel at Wal-Mart’s Mexican division, quietly left the company. And H. Lee Scot Jr., who was Wal-Mart’s chief executive, will retire from the board. These men belong to the list of executives from the uppermost reaches of Wal-Mart’s management who held critical positions when corruption scandals engulfed the company’s

With all that said, yes Wal-Mart family has quantity, yes Wal-Mart is business friendly, yes Wal-Mart has a lot of range of items. With all that what Wal-Mart lacks is customer services and workers satisfaction. What Target focus on is customer services and workers satisfaction. To keep a running facility is to keep a happy customers and happy employees. Even now Target is aiming to please not only customers within their stores but also people that shops online from their site “www.Target.com”. Other voiced that Wal-Mart has better lower prices. I would say not all the time.