SWOT on Target Corp.
SWOT on Target Corp.
Every business is subject to factors that affect its function as a whole. These factors are the ones attributed for the success or even the failure of a business (1997). In the light of this, there are certain ways or techniques that can be considered in order to emerge and continue to be competitive within the market place. The marketing concept has been defined as ‘the key to achieving organizational goals’ and the marketing concept rests on ‘market focus, customer orientation, coordinated marketing and profitability’. In a profit making business the business organization obviously has to try and achieve this level of customer satisfaction as a way of staying ahead of the competition and making a profit (1994).
Considering Target Corp. as one of the leading retail industries in the U.S, it is imperative to identify its weapon in maintaining its competitive edge among other operating business in the same spectrum. Additionally, it is not only the competitive edge but its weaknesses, opportunities, and threats as well. Identifying the aforementioned factors is necessary in terms of management, marketing, and financial decision making and taking.
In this particular report, situations analysis of the company will be conducted through the use of different marketing tools. Herein, Target Corporation will be analyzed through the use of SWOT (Strengths, Weaknesses, Opportunities, and Threats) Analysis. The purpose of this internal analysis is to see what the organization has to work with as it begins to position itself to deal with the opportunities and threats identified through the analysis of the external environments. Specifically, it helps identify what existing strengths and weaknesses might impact the organization's value creation capabilities.
Initially, Target Corp. positioned itself as the sixth largest retail outlet in the U.S. with a total of more than 1,400 stores situated all over the country except in Alaska, Hawaii, and Vermont. Its revenue accounted to a total of $52.620 billion in 2005 ( 2006). Thus, it is considered successful and superpower in its chosen area of specialization.
As mentioned above, Target Corp. has been known as one of the largest and most competitive retail company in the U.S. Target has been depicted as "the discount store with attitude – where department store customers feel very comfortable shopping" (2000). This recognition can be attributed to the strengths of the company. One of its strength is its ability to anticipate the demands of the customers and its ability to provide high-quality and innovative products which in return make their customers become loyal of availing all their services and products. The company has been able to implement a strategy that will suit the needs of the company to provide quality services and to continually make the business become a tough competitor among its rival.
Target Corp. possesses the sophisticated and able technology that can cater to the fast changing global marketing management trends. It has core competence in its use of information technology that can support its management and marketing operations. Thus, adding to its innovations in service providing among the wide range of clientele. Its IT supports competent procurement of goods in e-marketing or online shopping aspect.
With such broadness and continuous expansion, Target Corp. holds a competitive practice in maintaining its human resources. Human workforces are the main players in the continuous development in the business and investment. Its diversity in HR is another strength that everyone in the company will benefit.
In addition, of the Target’s strength is its strong environmental commitment. The company imposed an environmental management system which includes community consultation, proactive planning, compliance, sustainable development and auditing for continuous development.
The company’s strength also is in line with the willingness of the management of Target Corp. to adhere to the regulations and policies imposed by the government. Further, being open-minded to the suggestions of other helpful groups that know what will be the best for the whole company within the operating area can also be attributed as one of the strengths of the company. Furthermore, the continued focus on controlling costs and increasing efficiency can also be noted as one of Target’s strengths to maintain is annual profit growth.
Lastly, its programs and activities that concerns socio-economic and humanitarian development serves as a reinforcing agent that will attract people – regular clientele and new as well – to continue patronizing and emancipating their decision to try their services/products.
Although the company encompasses much strength to continuously fight for market dominance in the region, the company also has its weakness. One of the weaknesses of the company is the inability of the management to anticipate price increases which affects their operations. In addition, the company is also lacking the capacity to carefully manage their business because of the large entities and separated units of the business. The company is faced with different unsolved issues because of lack of strategic decision making in several areas of HR. Further, due to the extensive coverage of products and services offered, the company may not allocate specific attention in the flexibility of some of its persistent rivals in the market. Considering its IT advantage, Target Corp. may not excel in some areas because of its vast coverage of control.
This weaknesses, if not given attention may lead failure for the company to achieve its goal of providing quality products and services among its clients.
With the management system of the company and the strengths that it has, the company has bigger opportunities to still dominate and catch up with the competition in the American retail industry in terms of providing more quality and less price products and services to its clients or even have an opportunity to be the number one retail company in the whole region after its eventual application of its proposed plans in the future. Another opportunity that can be attached to the company is it would gain more customers if the company would be able to determine the latest trends for products to meet the demands of their target market. With the continuous innovation of the company and the support that it shows to different managerial and environmental, and more importantly societal and humanitarian issues and concerns, the company can gain loyalty from their customers to make them more competitive in the marketplace.
The continuous initiatives of the company in diversification of its revenue resources also open new opportunities to make the business become stronger to outgrow all its rival companies. Such opportunities will include e-business development by strategic alliances among global retailers as well as suppliers, leveraging the company’s investment in the World Class Customer Satisfaction Systems, and other business opportunities in both non-core and core areas.
Operating in the most competitive marketplace especially in the retail industry, Target Corp. is faced with the inevitable threat of stiff competition. For an enterprise to succeed in global competition there is a continuous plan to develop new products with higher quality than its competitors. (1993) analyzes that new product and new business development must be highly effective and efficient, however that alone will not ensure its competitiveness. The expansion of its operations to other areas means adjusting to the trade policies and political problems of the locality. The dynamic needs and demands of customers served to be a challenge to the management. Furthermore, consumer behavior and satisfaction with regards to the product/service procurement is also a risk. If the company will continue to be a vertically integrated corporation, the company may fail in terms of management ability. The division of the company may tend to have internal complexity. In terms of production and manufacturing, Target Corp. may encounter cost inefficiency in its procedures. Large retailers like Target Corp. is faced with the considerable pressure of keeping their prices low due to competition and the demands of price-conscious consumers ( 2002). Additionally, fast paced technological advancement may be a threat to Target Corp. as a whole. In terms of the competitors, the company should be able to provide unique and more technologically advanced services to be able to survive in the stiff competition in the U.S. retail industry.
In order for the company to maximize its strengths and minimize or totally eliminate its weaknesses, the company must be able to use or impose a strategic marketing management system that will help them enhance their operations. In addition, the company must not only focus on its strengths but must try to also pay attention to their weaknesses and find solution to solve such issues and maintain a competitive business operation and performances.