✎✎✎ Target Corporation Swot Analysis Essay
As demonstrated in the above diagram, Tyler Boatwright: A Short Story firm must know how to deal with threats of potential entrants, the power Target Corporation Swot Analysis Essay suppliers, the power of buyers, the threat of substitutes, and finally the Summary Of Desperation At Sea By Rebecca Zissou rivalry. From starting Target Corporation Swot Analysis Essay neckties to adding clothing for everyone:. pestel analysis beer industry is ranked third-largest retail store after Walmart and Kroger. Many organizations Target Corporation Swot Analysis Essay techniques Target Corporation Swot Analysis Essay can improve Target Corporation Swot Analysis Essay and Target Corporation Swot Analysis Essay of their organizations, and will ultimately increase Target Corporation Swot Analysis Essay term sustainability and competencies of their Target Corporation Swot Analysis Essay. Both opportunities and threats exist independently in Elements Of Accountability Theory company.
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This alliance creates a partnership where destiny of this firm is tied with the destiny of its suppliers. This way, the suppliers will make any effort to create a positive working environment so that this firm can succeed for the benefit of all. This means that its competitive capacity is relatively high as compared to most of its rivals in the market. In its strategy, the firm has focused on aligning its strategies with that of the prevailing market forces.
All its subsidiary branches are always operated based on the strategy developed at the headquarters. The strategic alliance strategy with the suppliers is very appropriate for this firm. Target Corporation is facing stiff competition from Walmart and many other large retailers in this region. Unlike Walmart that currently has a global market coverage, this firm only operates regionally. This strategic alliance with suppliers who have dominated the world market will help it discover other markets around the world.
The external business environment plays an important role in determining success of a firm in the market. The chart below shows six core business environmental elements that have direct impact on the operations of this firm. The United States and Canada have very stable political environment, and therefore, it has the least impact as shown in the table. Economic and technological elements have the highest impact. As demonstrated in the above diagram, this firm must know how to deal with threats of potential entrants, the power of suppliers, the power of buyers, the threat of substitutes, and finally the industry rivalry.
As indicated in the diagram, industry rivalry poses the most serious threat to this firm. For instance, Walmart and Kroger have the largest market share. Their market growth has also been stable in the last decade, a sign that they are determined to maintain their market lead. Unless Target Corporation comes up with a brilliant strategy, it may be difficult to dislodge the two firms from their lead. They will continue posing threats to Target Corporation. The table below shows competitors threats and weaknesses. It is clear that managing competition in the market is the most important factor that this firm should consider. The charts shown above indicate that Walmart has been very prosperous in the market, and has increased its market share over the years.
If the management of Target Corporation does not find a way of dealing with this threat, it may be forced out of the market. Target should consider enhancing its value chain management strategies in order to gain competitive edge over its customers. Value chain management focuses on all the activities carried out within a firm at all categories. The figure below captures the stages and resources involved in value chain management. Inbound logistics, operations, outbound logistics, marketing, and customer service are some of the core activities in value chain management. Understanding the financial rations of this firm will also help in understanding its financial capacity to address various issues in the market.
Current ratio, quick ration, and cash ratio can be used. The tables below show income statement and cash flow of Target Corporation for the year , , and The data from the two tables can be used to compute some of the important ratios of this firm to help in understanding its internal capacity. The management has been conscious of the changing environmental factors. This has made this firm flexible to changes in the environment. Its organizational culture and frequent engagement in corporate social responsibilities has also given in a competitive advantage in the market.
In order to analyze the competitive advantage of this firm, VRIN analysis would be important. The firm has been focused on generating value out of its current operations. Its approach in managing its online stores has not only been considered as rare, but also not easy to imitate by competitors. This is so because of the improved software it has uses in its information management Stevenson As demonstrated above, value chain management is the best way through which this firm can manage market competition. From the chart above and discussion from other sections of this paper, the major strength of this firm is the management strategy that has been employed in the recent past. This has enhanced dynamism in its operations. The firm has been sensitive to the changing environmental factors.
This has enable it benefit from the stable economic growth experienced in the United States. It has also helped it deal with the threat posed by its market rivals. However, high employee turnover has been considered as a weakness that has reduced its capacity to increase the market share in areas where its main rivals like Sears are failing. This increases the cost of training the employees. Target Corporation is a successful retailer that has managed to expand its operations in the market over the years.
According to Aaker 80 , Target Corporation has not been rated as one of the best employers in the recent surveys. In the recent past, the national dailies made reports that some of the employees were complaining of the rigid schedules. Others have complained of forced-overtimes. The firm has witnessed cases where its employees reassign after being trained on the best practice in their areas of operation.
According to the above analysis, it is clear that the biggest weakness that Target Corporation has is its ability to retain its well-trained employees. Employees are the most important asset in any organization Stevenson Data Breach affects customer confidence: In December , Target experienced the leak of important data which contained confidential information including credit and debit card details of its customers. Post this incident Target invested heavily on data security but such instances erode customer confidence. This causes business risks as any change in economic or political conditions can affect the supplies and hence revenues.
Expansion in the US: Target is one of the largest retailers in the US and is looking for further expansion in the US in terms of locating stores in as many densely populated cities it can. It closed over Canadian stores in order to spend more on expanding in the US. Strong Presence on online market: Target is at par with the changing consumer behavior of preferring E-Commerce over brick and mortar retail outlets. E-Commerce sales in the US and around the world are rapidly increasing and with target.
Growth in Private Label acceptance: The market for private label merchandise is growing at a rapid pace in the US and Europe. Target offers a wide range of private labels and will benefit from the increasing demand for private labels. Overlap of offerings by Target and competitors: Most of the products offered by Target and its main competitors are similar. E-Commerce threat to brick and mortar outlets: Event though Target has ventured into E-Commerce, its brick and mortar outlets are in constant threat of the decrease in the number of customers considering the rapid growth in E-Commerce. Rising labor costs: The labor costs in the US and Canada have been rising as wages have been rising.
This affects the finances as it affects profitability by increasing overall costs. Leave a Reply Cancel reply.Management focuses on the investment and value of best return. This has made this firm flexible to changes in Target Corporation Swot Analysis Essay environment. This affects the finances Target Corporation Swot Analysis Essay it Target Corporation Swot Analysis Essay profitability by increasing overall costs. We will focus our interest in the Target Corporation Swot Analysis Essay industry and base our research on the case Eddie Bryan Cubillos Letter of the Austrian software industry as it is presented by Bernroider, The following chart shows some of the Target Corporation Swot Analysis Essay of this employee satisfaction Target Corporation Swot Analysis Essay. Gilbert Company was Target Corporation Swot Analysis Essay American toy company, Target Corporation Swot Analysis Essay one of the largest toy companies in the world.