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Target Corporation By: Leigh Blackmon, Justin Napier, Sara Ratliff, and Brian Roundtree.

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Presentation on theme: "Target Corporation By: Leigh Blackmon, Justin Napier, Sara Ratliff, and Brian Roundtree."— Presentation transcript:

1 Target Corporation By: Leigh Blackmon, Justin Napier, Sara Ratliff, and Brian Roundtree

2 Executive Summary The Firm  Upscale discount chain that offers trendy merchandise at affordable prices The Industry  Dominant Firms – Wal-Mart, Costco, K-Mart  Keys to Success- Marketing, Promotion, Brand Loyalty, Differentiation

3 Mission Statement At Target, our mission is to create a loyal customer base by selling a trendy, yet affordable range of merchandise. We are also interested in being socially responsible and do not define the success of our company simply by the bottom line. We are committed to the social, economic, and environmental welfare of all communities. Finally, it is our mission to encompass quality, style, and trend into all aspects of our corporation to ensure customer satisfaction.

4 External Environment Economic  Customer’s amount of disposable income  Customer’s propensity to spend Social  Age of customers  Beliefs of customers Technological  Technological forecasting  Giving customers the ability to shop from the comfort of their own home

5 Ranking of Porter’s Five Forces Present- 1) Substitutes 2) Rivalry 3) Powerful Buyers 4) Powerful Suppliers 5) Threat of Entry 1= Most Important, 5= Least Important

6 Suppliers No similar companies Ex. 1-Including purchase volume Ex. 2-Including differentiation of inputs Wal-Mart, K-Mart, and Costco Need more product differentiation Increase buyer volume Establish brand identity Providing quality and performance in each store Buyers

7 Threat of Entry Difficult to establish large companies Hard to imitate brand identity Large capital requirements

8 Substitutes None- Due to quality and fashion Results in customer loyalty Results in brand identity Wal-Mart K-Mart Costco Differentiation is key factor= Fashion Push Target’s brand identity Rivalry

9 Company Profile Primary Activities  Customer Service  Marketing and Sales Advertising, promotions, market research, planning  Operations Production and Quality Assurance

10 Company Profile Secondary Activities  Human Resources Recruitment, hiring, training, and development  Technology Conduct research New trends and interests

11 Company Profile Strengths  Loyal customer base  Readily available products  Constantly produces new ideas and exclusive products

12 Company Profile Weaknesses  Higher prices than Wal-Mart Population response to the economy  Not a global retailer Other companies, such as Wal-Mart, are gaining a competitive advantage  Not all stores are SuperTargets Customers want a one-stop store

13 Financial Analysis - Revenue Target  2001: $32.5 billion2005: $51.2 billion Costco  2001: $34.1 billion2005: $51.8 billion Wal-Mart  2001: $180.7 billion2005: $285.2 billion

14 Revenue

15 Financial Analysis – Net Income Target  2001: $1.1 billion2005: $2.4 billion Costco  2001: $0.6 billion2005: $1.06 billion Wal-Mart  2001: $6.2 billion2005: $10.2 billion

16 Net Income

17 Profitability

18 Asset Turnover

19 Firm’s Position / Core Issue Core Issue  Competition with Wal-Mart Target has one-fifth the sales of Wal-Mart Firm’s Position  Based on more than just pricing  Strive to encompass style, quality, and trend

20 Long Term Objectives Increasing Market Share  Achievable and Measurable Scenarios  Best Case: Wal-Mart going out of business and Target having a significant share of market  Worst Case: Target going out of business  Most Likely: Wal-Mart maintains market share and Target’s profit margin, sales, and net income will continually increase

21 Corporate Level Strategy Growth  International Expansion Create more competitive advantage Increase market share

22 Business Level Strategy Strategic Business Unit  Target Food Centers, Target Pharmacy, Target Retail Merchandise Generic Strategies  Differentiation  Focus Grand Strategies  Innovation  Product Development

23 Strategic Choice Differentiation  Higher quality, more trendy clothing, better style  Drive-through Pharmacies  Expansion into SuperTargets

24 Any Questions?


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