Environmental Analysis of Target Corporation
September 12, 2011
Environment Analysis of Target Corporation
Target Corporation is one of the largest merchants in the world. Target is recorded to be the sixth largest retailer within the United States. Founded by, George Dayton in 1902 Minneapolis, Minnesota. Target stores have a variety of products which includes everything from clothing to automotive and electronics. It is a corporation that is on-top of their game and continues to grow day-out. It is a brand that is well known and continues to raise the bar each year effectively. This paper will detect the importance of internal and external within the corporation overall.
The SWOT analysis is “a historically popular technique through which managers create a quick overview of a company’s strategic situation (Pearce and Robinson, 2011, p. 140).” The SWOT analysis supplies Target with a strategic planning method in order to gauge all the strengths and weaknesses of the company as well as what opportunities are available to the company, and any threats that may arise when operating the company. SWOT allows Target to detect key issues within the environment. This method is essential for Target, because it offers succeeding stepladders in the course of development for achievement of certain objectives.
Steps of Actions
Considering that Target is one of the largest retailer organization, there are steps that must be taken in order to continue their effective method of operating the organization. First Target will need to assess their market by analyzing their internal and external state of the business and how it affects the organization in general. Target will need to review and understand who are their customers, what strengths and weaknesses each competitor may have, and the issues, which are occurring within the world that may affect the business overall. The company will also have to analysis potential market ventures as well as the driving forces of all sales trends.
Assessing the company and competition
Assessing Target and their competition is vital when it comes to operating the company in general. Target will need to identify what resources the company has available to access, what they are best at and what capabilities the company has (function). Competition plays a huge part in competing with organization that provides similar services and products. Therefore, the company must identify with their competition by researching what makes them different from their competitor, what is the company’s over-all market conditions of Target, the needs that are needed for the company services and products and what opportunities are available within the customer-market-technology world. Target must also review problems customers may have with their services and product.
Strengths of Target
Target has continued to rise above and move forward with being one of the largest retailers to date. Target strengths consist of:
• Being the second largest retailer right behind Wal-Mart.
• Continues to increase sales after each year of operating.
• Has a huge number of retail networks, and more than 1400 stores.
• Durable supply and demand channels.
• Target is environment friendly, meaning they do not offer firearms or tobacco.
• Target is the top seller of Gift Cards within the United States.
• Has donated a superior amount of profits.
• Target stores provides variation of products such as clothing, sports apparel, electronics, kitchen, and bed room materials, beauty, and health products, and hardware and automotive supplies.
Weaknesses of Target
Although Target continues to stand ground, they are still face with possibility of being at risk, and carries weaknesses that must be address. The weakness of Target consists of:
• Target merchandises can become quite expensive matched to competitors such as Wal-Mart.
References: Pearce, J. A., II, Robinson, R. B. (2011). Strategic management: Formulation, implementation, and control (12th ed.). Boston, MA: McGraw-Hill/Irwin
(2009). Environmental analysis of Target Corporation. Retrieved September 12, 2011 from: http://ivythesis.typepad.com/term_paper_topics/2009/09/environmental-analysis-of-target-corporation.html
(2011). Target Corporation. Retrieved September 12, 2011 from: http://sites.target.com/site/en/company/page.jsp?contentId=WCMP04-030795
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