This website uses cookies to ensure you have the best experience. Learn more

Wal Mart Vs. Target Essay

1783 words - 7 pages

Wal-Mart and Target are both major players in today's retail environment. While different on elemental levels, both companies strive to provide excellent service to their customers and to fill niches in society. At first glance the two entities seem different in so much as their clientele, however; a brief examination of the operating profitability, asset utilization and risk management strategies show they have many similarities.Target's revolutionary style and marketing format provides high quality, stylish product at discounted prices. Target stores pride themselves in their well organized and well maintained family friendly stores that are clean and inviting to the consumer (Target, 2006). Target stores provide some of the highest quality and lowest prices on health and beauty products as well as a wide array of household items. The more modern Target super stores also contain a pharmacy, optical center, banking institutions, automotive repair, and photo services. Target markets trend forward merchandise and offers a step above the common discount store competitor. Target attracts a younger slightly more upscale consumer base because of its innovative style designs and designer partnerships (Wikipedia, 2006).Wal-Mart as well as Target, prides itself in providing name brand merchandise with the kind of friendly personal service expected at the neighborhood mom and pop store. Wal-Mart was the innovative industry leader in the development and launch of the super store concept offering a one stop shopping opportunity. Wal-Mart sells goods similar to the household staples offered by Target, however; Wal-Mart's focus has historically been on the more frugal economy minded consumer.In 2005 Target ranked in the top 20 contributors nationwide, giving back $2 million dollars every week to the communities the stores are in. Wal-Mart has won several awards for their generosity, such as the Corporate Patriotism Award and the Ron Brown Award (Wal-Mart, 2006).Both Wal-Mart and Target are audited by the professional consulting agency Ernst AND Young LLP, a global organization that helps many companies across all industries with services based on financial, transactional, and risk-management knowledge with their core businesses of audit, tax, and transactions.Target reported on their statement of operations that their net earnings were $2,408,000. Their total sales for 2005 were $51,271,000. This made their total revenues $52,620,000. Target incurred $34,927,000 in their cost of sales. This value is subtracted from the total revenues in order to get the net earnings value, in addition subtracted from total revenue are selling, general and administrative expenses at $11,185,000, credit card expenses at $776,000, and depreciation and amortization at $1,409,000. Reported on the statement of operations are the stock prices per share. Basic earnings per share are $2.73 and diluted earnings per share are $2.71. The weighted average is 882.0 for basic and 889.2 for...

Find Another Essay On Wal-Mart vs. Target

The quest for best Aldi vs Wal-Mart

995 words - 4 pages In today’s world, saving as much money as possible is very important to many people. Grocery shopping is probably the time many people spend most of their paycheck. Wal-Mart is often the place many will go, because of the low prices available. Another store also offers low prices, almost consistently more than Wal-Mart. The store’s name is Aldi, and it is a great store for those customers who are in a rush, and want to save money In

Company Selection Paper

1223 words - 5 pages performance in an easy to read written format (Wal-Mart stores, Inc. 2007). Target's website however, is a little different. Target combines the information from all four reports into an annual report that is prepared every year.Wal-Mart vs. TargetWal-Mart brought in $308,945 million in sales for the 2006 fiscal year whereas Target only brought in $52,620 million. A definite drawback to Target is the number of facilities. Target only has 1,444

Wal- mart's future

1668 words - 7 pages -Mart era, 10/8/2007, retrieved from the world wide web on 9/2/2009, 1 : Wal-Mart stores vs Target stores monthly comp sales (percent) 2000-2005Figure 2: Sam's Club vs Costco monthly comp sales (percent) 2000-2005Figure 3: Root of competitive advantagesSources: Charles W., Hill, G., Jones R., Peter G., Strategic management: an integrated approach, Milton, Qld.: Wiley, 2004. P. 115

Market Trends for Wal-Mart

1997 words - 8 pages barriers as it relates to exchange rates and foreign regulations.ReferencesColander, D. C. (2008). Economics: Seventh Edition. University of Phoenix. Burr Ridge, IL. Retrieved December 2, 2009, from University of Phoenix, rEsource, ECO365 - Principles of Microeconomics web siteCondor Options. (2008). Wal-Mart vs. Target. Retrieved December 6, 2009, from, G. (2005

Wal-Mart - A Case Study in Managing Technical Transitions

4916 words - 20 pages offering aggregation of a wide variety of consumer goods in a single location, and selling those goods at the lowest prices.With respect to traditional operations, Wal-Mart continues to enjoy success. Despite the emergence of other bricks-and-mortar competitors such as Target, Wal-Mart's cost position and relationships with suppliers still differentiate it from the competition. It's value proposition continues to be successful, and it remains a

Walmart: A Strategic Management Case study Financial Perspective

976 words - 4 pages with Target commanding a small premium on prices as it follows fashion trend. Market segment of Target is the high-income customers leading to higher margin realization. ($ 50,000 of target vs. EDLP strategy of Wal-Mart by leveraging purchasing scale has pushed down prices compared to other retailers. Average prices in Kmart and Target is at least 10-15% higher than Wal-Mart and focuses its competition on product variety and quality. Revenue

Wal-Mart Case Study

6292 words - 25 pages like Wal-Mart.What would happen if Wal-Mart changed their overseas labor practices and stopped using underpaid labor?Why doesn't the U.S. government step in and enforce U.S. labor laws as a condition of "Made in the USA" labels?Claims vs. Reality: Is Wal-Mart a Good Neighbor?Wal-Mart pursues a hometown identity for itself in every community it enters. It displays this identity through its "People Greeters," those happy people welcoming you as you

Wal-Mart Stores in 2003

949 words - 4 pages ). These features permit high efficiency (Wal-Mart inventory turns is 7.6 compared to 5.4 of Kmart and 6.1 of Target. Wal-Mart inventory cost accounts in 2003 only for 2- 3% of revenues compared to 4-5% of other retailers) The Scan’n pay system reduces the risks of unsold items for Wal-Mart and it’s an indication of its huge bargaining power . Innovation has always played a central role in Wal-Mart distribution system. The introduction of “cross

Wal-mart and its market struct

602 words - 2 pages never catch Wal-Mart is by looking at their sales volume over the years. In 1994, Wal-Mart sales volume exceeded the combined sales volume of Kmart and Sears, the number two and three retailers in the nation, respectively. By 1996, Wal-Mart sales volume exceeded the combined sales volume of Sears, Kmart, and Target. Wal-Mart's stranglehold on its competition has continued to grow constantly over the years.As if Wal-Mart's domination of discount

Walmart Vs Target

820 words - 3 pages . As you can see the Wal-Mart empire has grown monumentally. To move into this segment of the market would be tough. The first Target store was also opened in 1962. It was started under the Dayton Hudson Corporation. As you can see the Target corporation has a decorated past as well. Target now has 1,300 stores in 47 states. The store count itself is still a lot less than Wal-mart. For every one Target store, there is three Wal-Marts

Ratio Analysis & Statements of Cash Flow Final Report

3167 words - 13 pages /resource.aspBrealey, R. A., Myers, S. C., & Marcus, A. J. (2003). Fundamentals of Corporate Finance. In Financial Statement Analysis (p. 447-478). The McGraw-Hill Companies. Retrieved Oct. 12, 2007, from, (2005). Wal-Mart vs. Target Retrieved. Retrieved Oct. 5, 2007 from, (2007). In Operating

Similar Essays

A Target On Wal Mart Essay

1372 words - 5 pages lower shelf prices every day. Many people feel like the only way you can survived Wal-Mart without getting folded is to have something unique or different. On the other hand like Best buy, Target, and Kmart. These are some of the companies want to remain the underdog. They have found ways of still receiving business from their customers. Best Buy way of being known for their logos and everyday low pricing on all electronic goods. Target requires

Wal Mart Vs. Pyramids, By Laura Carlsen

968 words - 4 pages In “Wal-Mart vs. Pyramids”, Laura Carlsen questions the super franchises business tactics and opposes their attempt to build on the sacred, holy land that was once Teotihuacan. In her argument, Carlsen suggest that building in this area would infringe on the country’s cultural heritage, one that goes back thousands of years. Laura Carlsen gives a compelling argument against Wal-Marts’ practices in Mexico by displaying effective uses of ethos

Financial Analysis Of Sears Vs. Wal Mart

5340 words - 21 pages FINANCIAL ANALYSIS OF SEARS VS. WAL-MARTTable ContentBackground Analysis------------------------------------------------ 3Financial Ratio analysis--------------------------------------------- 4Weighted Average Cost of Capital (WACC)--------------------- 12Working Capital Management--------------------------------------20Dividend Policy and Tax Treatment------------------------------- 23Conclusion

Wal Mart Vs Women Equal Opportunity Employment

1079 words - 4 pages I am a firm believer that no one is perfect. That goes especially for employers who have a large number of responsibilities. As Daniels stated in her article in Fortune Magazine, Wal-Mart is "the nations' biggest company and largest private employer." Considering that fact, it is no wonder they are sued over 6,000 times per year. The case of Women vs. Wal-Mart has the potential to become the largest discrimination case ever. Throughout this