Target Market Analysis
1. Company Analysis
1.1 Company history:
Target Corporation is an American retail company that was founded in 1902. It has its headquarters in Minneapolis, Minnesota and the second largest company in the retail segment after Wal-Mart stores. Its earliest operations started as the Dayton store, the company has evolved with the first target store opened in 1962 (Bix 38).
1.2 Company culture/Mission
Culture is exhibited in at most all organizations, and is viewed to positively impact on the operations and achievements of many organizations. It is defined as the organizational values that guide the practices of the organization in terms of aspects of communication and customs (Randle and Eric 6).
- Collaboration & Innovativity culture
The company greatly esteems its employees needs and respects the views of its communities. The organization has a collaborative culture that enhances the spirit of teamwork in its operations. It particularly understands the benefits of teamwork and encourages all teams to innovate, contribute to the solution that has helped build its status as the America’s second largest retail store.
- Philanthropic Culture
The culture of philanthropy and corporate social responsibility is at the heart of Target Corporation. The company gives back to the community in various dimensions, either through corporate social responsibility or volunteering, whereby retirees help in the needs of the community. The company also issues at least 5% of its profit to local communities in Canada, to help alleviate poverty and hunger, while at the same time participates in educational projects. The company’s mission is to make the store the preferred destination through innovation and exceptional experience, and to offer more products at a lower cost as a brand.
1.3 Company problems/challenges:
Target Corporation faces challenges in inventory management. The company has limitations in managing large inventory needs, which results to underestimates in terms of the capability of the organization to seamlessly move its products. On the other hand, the company has had several attempts on its computer network, making it vulnerable to financial fraud, especially in instances card information can be snooped into by hackers, which could lead to data breach, which could hamper the effectiveness of their whole information system. This is a main threat especially in the era where e-commerce and e-business are driving the global market in terms of using internet technology in driving their agenda.
1.4 Industry Category/overall market trends
Target market is a company in the retail segment. The retail market is becoming competitive, and as such, companies will need innovative ways to help them stay afloat. Most will utilize the mobile and social media platforms in order to increase their market share. Specifically, the grocery business within the retail industry is expected to grow a notch higher, with baby boomers also expected to contribute to the retail business. Companies will be expected to affect total value chain initiatives, with excellent business models.
3.1 Market size and share
Target Corporation currently operates over 1,900 stores in Canada and the United States, with a cumulative base of over 100 million customers within its reach.
3.2 Distribution and Rationality
The company is well distributed, with stores in Australia, Canada, China, and Europe.
The company faces unpredictable services due to the current up heals facing some of its stores, especially in Canada. The company is unpredictable in its operations and lacks the ability to remain competitive, with other stores such as Sears, Costco and Wall-mart competing stiffly for the retail markets.
3.4 Development potential
Though the company is doing well in the US retail market. It has recently suffered expansion attacks due to poor strategy, with the current plan to discontinue international operations in Canada. The company is facing challenges in terms of growth capabilities, with many customers complaining of higher prices, compared to other competitors hence affecting its developmental capabilities, with plans for withdrawing its operations in other countries.
Bix, Cynthia O. Spending Spree: The History of American Shopping. , 2014. Print.
Flamholtz, Eric, and Yvonne Randle. Corporate Culture: The Ultimate Strategic Asset. Stanford, Calif: Stanford Business Books, 2011. Web.