This essay is a brief SWOT analysis of the retailer.
IIntroduction
Target is America’s second-largest general merchandise retailer, with over 1,100 stores across the country; it employs over 220,000 people. It has recently begun electronic marketing through its Target.com subsidiary. (Pergiovanni, PG).
This paper is a SWOT analysis of the corporation. It concentrates on the Target stores themselves.
IIStrengths
I’ve scanned a listing of newspaper articles with “Target Corporation” as the headline, and a pattern has emerged: Target has consistently grown while many other companies are losing ground. To take just three examples: in August 2002, Target sales grew 7.5% (“Target Corporation August Sales Up 7.5 Percent,” PG); In October 2002, they were up 9.8% (“Target Corporation October Sales Up 9.8 Percent,” PG); and the most recent article cites a 7.7 percent increase in January 2003. (“Target Corporation January Sales Up 7.7 Percent,” PG).
This is an impressive record for a company in a country mired in a deepening recession.
The company has declared dividends for its shareholders every quarter as well, making it a good investment. It’s also begun to sell its goods via the Internet, and its Website is very user friendly and is proving to be a success.
The company has chosen its approach to retailing very carefully. It aims for “consistency of experience” for its customers by making all its stores nearly identical. It also has to differentiate itself from Wal-Mart, the market leader. Target executives opined there were three choices open to them: “to specialize, to become the low-cost producer or to differentiate ourselves.” The first would have made them a niche marketer, and Wal-Mart has a lock on the second option. That left differentiation, and Target has succeeded in making themselves distinct from other low-cost retailers. (“A Tale of Two Stories,” PG).
The Essay on Target Corporation 6
Target Corporation is a powerful retail brand. It has a reputation for value for money, convenience and a wide range of products all in one store. Target Corporation is the third-largest general merchandise retailer in the United States. Target has three main competitors which is Wal-Mart, Costco, and K-Mart. Wal-Mart is the largest retail chain in the world, its mission is “Always low-prices!” ...
We’ve already noted above the success of their strategy.
Finally, the corporation gives five percent of its pre-tax profits to philanthropic causes. (“External- Focused Tactics Used by Business,” PG).
This policy has made Target a welcome presence in the communities it serves.
IIIWeaknesses
Some of Target Corporation’s weaknesses are intrinsic to their business style, but most become apparent only when compared to Wal-Mart.
One of Target’s trademarks is its attention to customer service, which takes a long period of training. The emphasis on teamwork, and the long training periods, “can be frustrating to the ambitious individuals.” (Bell, PG).
With regard to Wal-Mart, Target’s 401(k) plan is inferior; there is no profit-sharing plan; and there are no employee stock option plans. Wal-Mart managers receive more vacation time (though Target managers have more perks overall).
(Bell, PG).
Target lags far behind Wal-Mart in market share with little chance of ever catching up, let alone surpassing the leader. Finally, Target doesn’t have the capital to expand overseas. (Bell, PG).
IVOpportunities
Since Target has so carefully chosen its market strategy, it would seem that its best option is “more of the same.” Currently they operate in 47 of the 50 states; logic would suggest that expansion into the other three states would be the most effective next step in increasing their market share.
In addition, they have made a good start on e-commerce by creating an attractive and user-friendly website. They should continue to explore Internet marketing.
VThreats
The biggest threat to Target, K-Mart or any other “discount” retailer is Wal-Mart. Wal-Mart complete dominates this market; one source said that it accounted for 47% of sales while Target accounted for 9% for the same period. (Schindele, PG).
The Business plan on Target Strategic Outline Wal Mart
I. Mission Statement: II. External Environmental Analysis. Remote environment - these are the factors, which affect all businesses, and frequently, neither the business nor the industry has any control over them - examples: i. Entry barriers ii. Social iii.Political iv. Technological. Ecological factors vi. Economic factors: The economy has a major influence over the retail industry.Target's ...
Both stores are doing well, but the disparity in profit is enormous and War-Mart continues to grow as it offers the lowest prices available. It also pursues vendors aggressively and offers terms to them that are extremely advantageous. Unless Target can find a way to counter Wal-Mart’s strategy, it will remain in second place, very far behind the leader.
VIConclusion
Target Corporation is a highly successful organization that has carefully chosen its strategy to maximize its success. Its weaknesses, which seem to relate mostly to internal policy, are far outweighed by its strengths. It might be advantageous to consider expansion into international markets, and to those states it does not presently serve, but there seems little else to recommend.
VIIReferences
Bell, Jim, Emily Eidemiller, Erin Holm, Brian Morlock and Phil Trem. “Strengths and Weaknesses of Working as a Manager at Target.” Cluster Consulting & Placement [Website]. 11 Mar 2001. Accessed: 19 March 2003. http://oak.cats.ohiou.edu/~bm318699/esp/targetmemo.htm
“External- Focused Tactics Used by Business.” New Tactics in Human Rights Project of The Center for Victims of Torture [Web site]. Undated. Accessed: 19 March 2003. http://www.cvt.org/new_tactics/tools/businesssection/external-3.htm
Schindele, John. “Target Corporation.” [Web page]. Undated. Accessed: 19 Mar 2003. http://essay.studyarea.com/old_essay/Business/target_corporation.htm
“Target Corporation August Sales Up 7.5 Percent.” PR Newswire, New York 5 Sep 2002. Retrieved 19 March 2003 from ProQuest, San Diego Public Library, San Diego, CA: http://proquest.umi.com/pqdweb?Did=000000160354291&Fmt=3&Deli=1&Mtd=1&Idx=64&Sid=1&RQT=309
“Target Corporation October Sales Up 9.8 Percent.” PR Newswire, New York 7 Nov 2002. Retrieved 19 March 2003 from ProQuest, San Diego Public Library, San Diego, CA: http://proquest.umi.com/pqdweb?Did=000000233921821&Fmt=3&Deli=1&Mtd=1&Idx=43&Sid=1&RQT=309
“Target Corporation January Sales Up 7.7 Percent.” PR Newswire, New York 6 Feb 2003. Retrieved 19 March 2003 from ProQuest, San Diego Public Library, San Diego, CA: http://proquest.umi.com/pqdweb?Did=000000283739711&Fmt=3&Deli=1&Mtd=1&Idx=12&Sid=1&RQT=309
The Research paper on Appraising Employees At The San Diego Zoo
Author Note: This case study is being submitted August 14, 2011 for Bill Erickson’s B165/MAN1300 Section 12 Introduction to Human Resources Management course. Case 06: Appraising Employees at the San Diego Zoo Introduction: The San Diego Zoological Society previously had an appraisal system in place for its 2,600+ employees that was almost entirely ineffective. This year it is beginning to ...
