Form expect more to pay less
COMPANY CASE
Target: From “Expect more” to “Pay Less”
IMRAN HASSAN
MAOOZ AHMED SIDDIQUI
BS COMMERCE 4th SEMESTER TO
Mam Sarah
COMPANY CASE
Target: From “Expect more” to “Pay Less”
Q.1: What microenvironmental factors have affected Target’s performance over the past few years?
Over the past few years, following are the factors that have affected Target’s performance:
Competitors: Walmart’s distinct strategy of providing products at a very low price, resonated with consumers in the economic crisis of 2008. This led to Target’s decline in market share as Wal-Mart had a huge microenvironment affect as a competitor as the low cost store.
Customers: As the recession hit, unemployment rose and people started becoming more responsible with money, the consumer priority changed from fashionable to budgeted purchase. Since Target was known for style, fashionable in slightly higher price, in the end, they hurt themselves. Target should have done a lot better of a job in providing customer value and satisfaction than Walmart. Customers would have stayed loyal if valued and satisfied.
Publics: Target had a falling out among its various stakeholders, with the activist shareholder William Ackman, whose company lost 85% of the $2 billion invested in Target. Ackman not only chided target for
being ineffectual in dealing with the abrupt economic downturn but also accused the Target’s board of directors to be inexperienced and so, went on to ask to control 5 of the board’s seats.
1
Operations: Target made two significant operational changes. Firstly it brought up “mini grocery stories” which carried a narrow selection of 90% of the food categories found in full-size grocery stores, including fresh produce. This led to customer convenience, saving their time and effort. Second, they surprised everyone by discarding
the bulls-eye, replacing it with big, colorful, upward pointing arrows on a white background, with the new brand name,
Target: From “Expect more” to “Pay Less”
IMRAN HASSAN
MAOOZ AHMED SIDDIQUI
BS COMMERCE 4th SEMESTER TO
Mam Sarah
COMPANY CASE
Target: From “Expect more” to “Pay Less”
Q.1: What microenvironmental factors have affected Target’s performance over the past few years?
Over the past few years, following are the factors that have affected Target’s performance:
Competitors: Walmart’s distinct strategy of providing products at a very low price, resonated with consumers in the economic crisis of 2008. This led to Target’s decline in market share as Wal-Mart had a huge microenvironment affect as a competitor as the low cost store.
Customers: As the recession hit, unemployment rose and people started becoming more responsible with money, the consumer priority changed from fashionable to budgeted purchase. Since Target was known for style, fashionable in slightly higher price, in the end, they hurt themselves. Target should have done a lot better of a job in providing customer value and satisfaction than Walmart. Customers would have stayed loyal if valued and satisfied.
Publics: Target had a falling out among its various stakeholders, with the activist shareholder William Ackman, whose company lost 85% of the $2 billion invested in Target. Ackman not only chided target for
being ineffectual in dealing with the abrupt economic downturn but also accused the Target’s board of directors to be inexperienced and so, went on to ask to control 5 of the board’s seats.
1
Operations: Target made two significant operational changes. Firstly it brought up “mini grocery stories” which carried a narrow selection of 90% of the food categories found in full-size grocery stores, including fresh produce. This led to customer convenience, saving their time and effort. Second, they surprised everyone by discarding
the bulls-eye, replacing it with big, colorful, upward pointing arrows on a white background, with the new brand name,