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Strategic Analysis of Target Corporation

Briana Andreoli
Sacred Heart University

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Andreoli, Briana, "Strategic Analysis of Target Corporation" (2018). Academic Festival. 29.
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 Andreoli: Strategic Analysis of Target Corporation

Strategic Analysis of Target Corporation

Briana Andreoli
Sacred Heart University

Target at a Glance Internal Analysis

Target Corporation is an upscale discount Resources:
retailer that provides high-quality, on-trend Porter’s Five Forces Model • Strong brand recognition and presence
merchandise at attractive prices in clean,
in the US
spacious and guest-friendly stores.
• Private label and owned-brand
Threat of New
Organizational Mission, Vision, Entrants: merchandise
Values & Strategic Goals Moderate • Exclusive collaborations with designers
Mission: “We make Target our guests’ and brand-name companies
preferred shopping destination by delivering • Strong social media presence
outstanding value, continuous innovation and • Unique shopping experience and
an exceptional guest experience – consistently
Bargaining Rivalry Among Bargaining environment
fulfilling our ‘Expect More. Pay Less.’ brand Power of Existing Power of
promise.” Suppliers: Competitors: Buyers:
Low High Moderate Capabilities:
Vision: • Expand their departments to effectively
• Great shopping: Anytime and anywhere compete against rivals
• Leading in design and innovation • Grow their presence and expand on an
• More for your money Threat of
Substitute
international scale
• Celebrating diversity and inclusion Products and • Further develop online retail
Services:
• Community support and engagement
Moderate
capabilities
• A fun and rewarding place to work • Expand to different geographic
locations to reach a new market
Values: “Target remains committed to its
legacy of responsible corporate citizenship,
SWOT Analysis • Continue and expand upon the path of
sustainability and “green” products
ethical business practices, environmental
stewardship and generous community support. Strengths Weaknesses
Since 1946, Target has given 5 percent of its Business Strategies
profit to communities, which today equals •Pricing Strategy •Consumer Confidence
millions of dollars a week.” Focus Product Differentiation:
•Strong Presence in the US •Financial Performance • Brand image and reputation
•Differentiation Through •Limited Visibility in the • Product quality
Strategic Goals:
Merchandise International Market
• Remove artificial flavors, preservatives, and • Service and support
colors from all of their owned-brand
children’s items by the end of 2018
Opportunities Threats Diversification:
• Achieve ENERGY STAR certification in 80% of
their buildings by 2020 • Related
•Expansion in the US •Expansion by Competitors
• Reduce the energy intensity per square foot • Unrelated
in their stores by 10% by 2020 •Growth in Private Labels •Rising Labor Costs
• Add solar rooftop panels to 500 of their •Expansion to Internal •E-Commerce Threat to
Vertical Integration:
stores and distribution centers by 2020 Markets Brick and Mortar Outlets
• Expand their investment in offsite • Forward
renewable energy to complement onsite • Backward
renewables by 2020
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