Target Porter's Five Forces Analysis

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Target's main goal is to be the main shopping center for families. It's a classy discount store that focuses on customer loyalty and also has brand names that the customers wouldn't mind paying the higher prices for. Target's slogan, "Expect more, pay less" is recognizable throughout the country. It's also recognized for their coupons, red card rewards, and distinct red logo. Even when the economy takes a hit Target sales continue to grow, proving that it is one of the top retailers in the game at the moment. Its growth so rapid, it has opened stores outside the U.S. Porter's five forces model shows Targets rivals and potential risks to the company also its strengths and weaknesses in the market. Competitive rivalry is very big in the retail/grocery industry. There will always be different firms dominating the market at all times, some more than others. Walmart, Costco, and Amazon hold a big rivalry against Target. Each of has many different types of consumers that happen to go to all three or just one. There are many factors that Target has to consider with regard to competition such as Large number of firms in the retail market (strong force) Large variety of retail firms (strong force) High aggressiveness of…show more content…
People love going to Costco and getting the ultimate shoppers experience plus free samples. All three can have Target chasing after their customers. But this graph above shows that the growth in Costco is slowing as of 2014. At first it would seem Costco is doing the best but Costco only, "has 649 stores; when you compare that to Wal-Mart's 11,000 locations, it seems tiny" (Tahiri 2014). There is also the fact of how well Costco pay its employees. Costco now has lower turnover rate and that saves them money in the hiring process but Target and Walmart are catching up and having more stores can prove beneficial in the end, even if they save money because of employee and customer

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