Target Case Study

Document Type:Case Study

Subject Area:Business

Document 1

4 Threats ……………………………………………………………. 5 The Future of Target Home …………………………………………………. 6 The Four P’s ……………………………………………………………………9 Team Structure …………………………………………………………………12 Technology …………………………………………………………………. 12 Marketing ………………………………………………………………………12 Product Categories …………………………………………………………. 13 External Competition ………………………………………………………. Current SWOT Analysis With the retail market changing, Target must change with the retail market in order to sustain a competitive advantage. It is important to look at a current SWOT analysis of the corporation in order to see what are the strengths, weaknesses, opportunities, and threats. Strengths Target is a very successful company with a total 2017 sales of $71. 9 billion. Target is currently the second largest general merchandise retailer in America. This helps give the company a competitive advantage. In 2010, Target released the REDcard Rewards loyalty program. This program allowed regular customers to receive discounts on purchases in store or online. Loyalty programs help attract customers, as well as maintain loyalty of current customers.

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Weaknesses Even though Target has a lot of strengths, there are also weaknesses that the company faces. However, Target quickly failed due to location, empty shelves, and competition from Walmart (Wahba). Opportunities The consumer market is changing. According to Statista, retail e-commerce is expected to double between 2016 and 2020. The National Retail Federation (NRF) expects online retail to grow between 8%-12% in the next four years. Some sources, such as Business Intelligence, believes that e-commerce will become the future of retail. These threats include e-commerce and the state of the economy. Even though Target has an e-commerce, its brick and motor stores are in a continuous threat of losing profits due to its customers preferring the fast growing online retailing. As mentioned before, the online retail is expanding and is expected to double between 2016 and 2020.

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The company has already established a brand image in their brick and motor stores, however they will need to establish that image on an e-commerce level in order to stay relevant. Another threat that Target faces is the changing economy. Pay Less” is a slogan that Target has been using since 1994 (Target). This slogan means that the guest should expect better assortments, better quality, better services, and more quantity all while paying less. The meaning of this slogan is true even in their Home categories. Target wants their guest to get the most out of their money. The company wants their guests to have lots of options in furniture, décor, housewares, domestics, stats and seasonal because they know each guest has a unique style.

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Pay Less. ” However, the company needs to continue innovating as the market changes in order to keep the brand promise. Augmented reality is a new technology that superimposes a computer-generated image on a user’s view of the real world, thus providing a composite view. Augmented reality is becoming more popular because it brings elements of the virtual world, into the real world, thus enhancing the things we see (Reality). This new technology is becoming more common in video games apps. Four P`s Great marketing does not happen by luck. It is what entices the client to engage with a certain company in purchasing products and services. It may sound simple or easy, but it requires a considerable amount of planning and research.

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Putting the correct elements together can be a challenge but when Target Corporation utilizes well the Four P`s: Product, Price, Place, and Promotion can directly help the business. When Target Home well blend the four factors, it will profile the desired behavior from the prospect by either making a purchase or subscribing. Music and videos will act as streaming services of illustrating products that are available at Target Home such as furniture. Target Home should also introduce a device that enables customers to buy household items by clicking the button and connecting with the internet directly. Video Direct is also an app that they should create to allow ad-supported free viewing from the generated videos. Place The venues used to reach prospects are identified in this marketing mix.

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Target Corporation is mainly an online retail business. The target may use the above methods, but the secret is how efficient is the methods. Advertising is a fundamental part of the promotion. Target should make use of affiliate programs that allow site owners to earn revenues by displaying ads and consequent links to products that are available at Home. This strategy is effective because it widens up the target market. Sales promotion is another strategy that attracts customers through the provision of special offers and discounts. Team Structure The productivity of the work and expansion of the market depend on how an organization builds its team. Target should expand its borders by becoming itself a blueprint to open the boundaries. The structure should facilitate growth.

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The team should be flexible about when, how, and how work should be done. Proper decisional making will allow issues, problems, and solutions to be identified quickly and appropriately. The navigation should be simple so that customers can find products easily. External competition Target should always be ahead of competitors regarding marketing and technology. They should ensure that they position strengths to weakness. For instance, if a competitor is selling is selling the best product at a low price, Target can placing a long guarantee period of the product or employ domestic customer service. Target should learn to stay lean by maximizing value and reducing water. Behind the Scenes at Target. ” Target Corporate, corporate. target. com/about/history/Target-through-the-years#1990s. Abrams, Rachel.

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