Target Corporation with the famous bulls-eye logo is known as the second largest discount retailer in the US (behind Wal-mart). The company was founded in 1902 by George Dayton, as Dayton Dry Goods with the first store opened in Roseville, Minnesota. In 2000, it renamed to Target Corporation “to better reflect its core business” (Target Corporation, 2014) According to the main website, Target has stated its mission statement “is to make Target your preferred shopping destination in all channels by delivering outstanding value, continuous innovation and exceptional guest experiences by consistently fulfilling our Expect More. Pay Less.” The company has over 1700 Target and Super Target stores in 47 states and offers various products in its store chain from household essentials such as clothing, shoes, bedding, kitchen supplies, toy, pet supplies to PC, laptops, electronics, seasonal merchandises, and groceries. (Target Corporation, 2014)
One of the most important aspect of Target’s success is the company has a clear vision of where to go and what to do. Even though it has faced the tough period during recession, the company has come up great strategies, switched their gear to adapt the changes of markets. One of its strength is the strong brand image, which has greatly built over many years. As the result, people still chose to go to Target despite the downturn of the economy, which affected consumers’ abilities of spending. Moreover, comparing to Walmart who mostly competes on low prices, Target has built it own market position by focusing on affordable yet fashionable goods, accordingly to its brand’s promise “Expect More. Pay Less”. The bulls-eye logo has become one of the most recognizable symbols to many American consumers, just like McDonald or Nike brands.
However, Target has retained some of the weaknesses in that target market. such as small international presence where it offers very little communication internationally. Currently, Target only focuses its operation in the US markets, and neglects other potential global segments. Thus, expanding globally in the contrary, specially Canadian market, would be a good opportunity for growth. Also, growth in Pharmacy area could be another way as well. For better competition, Target should also consider some of the opportunities to improve its business such as developing in environment friendly products or redefine its strategies to adapt to different retail environment.
However, there are also some threats to the business such as new technologies which provide wider options to customers for scanning different prices offer which give them more power of consumer. Moreover, the existence of giant e-tailers such as Amazon or Ebay, who offer wider options in range of products, flexible prices and more convience environment of shopping experience, is considered the biggest threat to Target’s traditional stores.
Several years ago, Target was in a tough situation just like other...