Foundations of Retailing Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Company Profile

Target Corporation is based in Minnesota City, which is located in the US state of Midwestern. Target provides its customers with necessities of life, meanwhile, it also serves the customers with fashionable, and other merchandise. Target differentiates itself from other competitors through selling the merchandise at discounted prices and calls its customer as a guest to give them a unique experience.

Currently, Target Corporation operates 1,795 stores in the United States and 130 stores in Canada, which collectively generated $72,596 million of revenues and $1,971 million of net earnings during the financial year 2013. Meanwhile, Target has generated $16,957 million and $449 million of revenues from its US and Canadian operations respectively during the second quarter of 2014.

Meanwhile, Target has employed a total number of 366,000 employees in the US and Canada. Further, due to the diversified nature of operations, Target Corporation has been ranked at number 20 among 50 companies, as per the rankings of Diversifying and is ranked at number 29 on the Fortune’s World Most Admired Companies List. The major competitor of the company is Wal-Mart and competing with such a big player itself is a strength for the company.

Adding more to its strengths is its effective management system that helped the company in surviving in such a competitive environment. The company signifies its presence all across the USA, which has enabled the company to target a mass audience from urban and rural areas. The presence of such large entities is a major strength for the company as it enables the company to compete with big players (Bresser, 2008).

Another major strength of the company is the flexibility that it offers in its strategy that allows the company to shape its strategy according to the demands of the market. Besides that, the company also obtains a reasonable market share, which has allowed the company to exist in such a competitive environment. The company has a strong strength in the form of technological advancements that has permitted the company to cope up with growing technological challenges.

Furthermore, this has helped the company in attaining significant revenue growth as well. Besides other strengths that the company has, one of the major strengths lies in the variety of products they offer. Through the variety offered by the company in the products, the company has established a strong position in the consideration set of the consumers. On the other hand, the company has strongly positioned itself in the eyes of consumers through effective promotion.

One of the major weaknesses of the company is that the company has a strong presence in the USA while globally the company is absent. Lack of global presence makes its position quite weak in front of competitors like Wal-Mart. Although the company is in the market for almost a century now, yet the global presence is not in the strategy of the company. On the other hand, the company’s turnover rate is quite high that has restricted the company from sustaining key employees.

Besides that, Target Corporation has been always weak in terms of distribution and managing the distribution cost that always remains high. There are two potential opportunities for the company that can allow the company to strengthen its position in a competitive landscape. The first opportunity is to expand globally and target emerging markets. The second opportunity is for introducing products under their brand name, leveraging the burned image of the company (Myr, 2008.).

The major threats to the company include the interest rates that are inkling rapidly and the fierce or intense competition from players like Costco and Wal-Mart. These threats are quite significant in shaping the strategy for the company in the future.

Foundations of Retailing Case Solution

Target Market

The target market of Target Corporation is almost everyone that comes under the radar of the company’s profile. However, the company is set demographic segment that can be regarded as the target market for the company or the retail store. Being a trendy retailer, the company is offering best value for money to its customers. The company offers quality at a high degree at low price and the target market is everyone who is attracted to this offering.

However, according to the described demographic segment majority of the customers of Target are women that comprise of almost 93% shoppers. The median age and income that the company is targeting is almost 41 and $63,000 simultaneously. Furthermore, the family size is defined are families with children either one or more than one and include educated or uneducated people as well..........

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