Comparison Of Kmart And Target
Retail Comparison
Kmart and Target
Word Count: 2500
Executive Summary
The comparison that has been undertaken in the study is a thorough study taking in to account the external and the internal environment of both the retail companies Kmart and Target which are both successful in different countries. Kmart in Australia is successful while target is a struggling Company. Both deal with the same types of products and both companies belong to the same sector. The aim of the study is to find out why one retailer is successful and another retailer in the same type of environment is unsuccessful
What came out during the course of the study is that the customer segment that was being targeted by both companies was similar and yet …show more content…
It is supported by the Australian government because of the large scale employment that the organization provides to Australians.
Economic Forces: The economic conditions in Australia have been good. The tax rate that Kmart pays in Australia is 30%, the level of regulations is low for Kmart, and it has the scope to be able to do business in the entire region facilitated by trade and online business. The international scope is not very good currently after having filed for bankruptcy in 2002 in U.S.A with acquisitions that did not perform.
Socio Cultural Forces: The Australian customer base and the culture and social conditions are well known to the company which is why it has been able to outperform Target Corporation by understanding the needs of the lower middle class and the middle class. The social challenge that Kmart has thrown to the customer segment is if the customers can find a lower price in Australia then the company will match …show more content…
It also focuses heavily on the delivery speed and the fresh products for customers in a competitive market (Tongue et al., 2012).
Future Projections
CEO of Target Corporation, Paul Ziobro, has made clear plans for future as he aims to double down on some of the departments within Target stores. The special future plan aims to build on baby products and health and wellness products associated with Target. Target is also focusing on strengthening supplier management that will provide edge to the company in competitive market. Target is also aiming at revamping fashion and furniture segment to boost its sales volume (Furno, 2014).
Recommendations for Target Corporation
Target needs to focus on changing the customer segment in Australia. It needs to focus also on upper segment of the market rather than focusing majorly on mid level market. Strengthening brand loyalty among existing customer base is also equally important.
It also needs to spend less on corporate social responsibility in order to cut costs and increase its
Kmart and Target
Word Count: 2500
Executive Summary
The comparison that has been undertaken in the study is a thorough study taking in to account the external and the internal environment of both the retail companies Kmart and Target which are both successful in different countries. Kmart in Australia is successful while target is a struggling Company. Both deal with the same types of products and both companies belong to the same sector. The aim of the study is to find out why one retailer is successful and another retailer in the same type of environment is unsuccessful
What came out during the course of the study is that the customer segment that was being targeted by both companies was similar and yet …show more content…
It is supported by the Australian government because of the large scale employment that the organization provides to Australians.
Economic Forces: The economic conditions in Australia have been good. The tax rate that Kmart pays in Australia is 30%, the level of regulations is low for Kmart, and it has the scope to be able to do business in the entire region facilitated by trade and online business. The international scope is not very good currently after having filed for bankruptcy in 2002 in U.S.A with acquisitions that did not perform.
Socio Cultural Forces: The Australian customer base and the culture and social conditions are well known to the company which is why it has been able to outperform Target Corporation by understanding the needs of the lower middle class and the middle class. The social challenge that Kmart has thrown to the customer segment is if the customers can find a lower price in Australia then the company will match …show more content…
It also focuses heavily on the delivery speed and the fresh products for customers in a competitive market (Tongue et al., 2012).
Future Projections
CEO of Target Corporation, Paul Ziobro, has made clear plans for future as he aims to double down on some of the departments within Target stores. The special future plan aims to build on baby products and health and wellness products associated with Target. Target is also focusing on strengthening supplier management that will provide edge to the company in competitive market. Target is also aiming at revamping fashion and furniture segment to boost its sales volume (Furno, 2014).
Recommendations for Target Corporation
Target needs to focus on changing the customer segment in Australia. It needs to focus also on upper segment of the market rather than focusing majorly on mid level market. Strengthening brand loyalty among existing customer base is also equally important.
It also needs to spend less on corporate social responsibility in order to cut costs and increase its