Swot Analysis Of Target

734 Words3 Pages
Target Corporation is a general merchandise retailer selling products through its stores and digital channels. The Company’s strategic objective is to be able to accurately predict customers’ needs through larger inventory and by increasing sales through their high-end atmosphere. Being that their target market is mostly made up of people between 18-44, mostly with a college degree, and an average income of $65,000, their atmosphere is one of their main key points. One of the core values of Target is to promote growth and learning. By providing financial assistance through social organizations, volunteering, and other social initiatives. Furthermore, Target’s internal business process is characterized by individuality, the understanding of…show more content…
It is a well-respected brand, compared to its counterpart, Walmart. Due to the reputation it has built with its customer over the years through their service, Target has managed to collect information and develop strong marketing skills. One of its key findings involving targeted market was millennials. One of their current marketing strategies seeks to draw millennials in. Due to their lower disposable income, and their propensity to shop at discounted stores as a result, Target is likely to benefit. Furthermore, due to a major rival running out of business, Target now has the ability to compete with Walmart and grow its market share for that particular market. However, although stocks rose due to recent CEO replacement, sales fall due to their current pricing-promotional strategy as well as ineffective store processes. Situation Analysis Essentially every company’s goal is to generate demand, which it will then supply to. However, only those that create value leading to a sustainable competitive advantage tend to gain a larger portion of the market and are able to establish themselves at the top. Rivalry…show more content…
When Target delivers products and services at a low cost, which from economies of scales is considered as a competitive advantage, they are able to beat their rivals on price, and at the same time, have a higher profit margin while doing so. In addition, the new entrants require larger investing of their financial resources to be able to enter and compete in this industry. Without proper logistics, the marketing skills, the infrastructure, and the service, companies won’t last. For instance, take Target’s exit of the Canadian market in 2015. Furthermore, Target Corp. businesses becomes heavily reliant on technology investment to support multichannel efforts and transform information processes and computer systems more efficiently and run the business and remain competitive. However, it’s growth also depends on ability to build new stores in locations in fully developed market in favorable geographic locations. Another threat Target faces is that of substitutes. As mentioned before essentially every company’s goal is to generate the demand to which it will supply to, thus, because there are many other competitors offering better quality for higher prices or lower prices and

More about Swot Analysis Of Target

Open Document