Introduction
As the second largest retail store in the U.S after Walmart, Target Corporation has endeared itself in the hearts of many Americans due to the quality of services and goods it offers them. This has ensured that it gains a competitive advantage over its fierce rivals in the names of Walmart, Sears, and Kmart. In this essay, the retail chain’s competitive advantage will get diagnosed and explained leading to a conclusion as to why it has been doing quite well despite the fact that it has never changed its business model since its inception in the 1960s.
Target corporation’s competitive lies in several fronts. First, it has one of the efficient business models in the globe that has never gotten changed since its founding. In the model, the company gets distinguished from its competitors through the provision of high-quality yet cheap products to its customers. The ability to offer high-quality and affordable products to the customers has improved the Target’s brand in the U.S., and the company has become many people’s beloved in the country and the globe. Also, the company’s ability to offer high-quality goods to its customers has earned it a place in Fortune’s “World’s Most Admired Companies” rank, ranking above big firms like PepsiCo, Boeing and Johnson & Johnson in 2013 (Raheja par.2). The second aspect of competitive advantage for Target Corporation is its aesthetic appeal. The company offers products that trend forward and are more upscale which most of its rivals do not have. The aesthetic appeal has helped it rise above other competitors in the retail industry making it one of the best retailers in the American retail industry.
Furthermore, the company’s philosophy formulated by its founder John Geisse concentrates on product differentiation grounded on quality, and this is one of its key success factors. A 1960 research done on the weaknesses and strengths of retail stores in the US by the Geisse found out that most of them had not laid any emphasis on the quality of goods but rather low-priced merchandize. The findings led to the company’s decision to offer high-quality products at low prices which attracted a majority of Americans who value quality over quantity (Raheja par.3-4).
Target Corporation’s presence outside the U.S. has also contributed to its competitive advantage. For instance, its 24 stores in Canada opened in 2013 have given it an opportunity for international expansion. There are also plans to have it open branches in many other countries in the world. Doing this will enable it to get more revenues from countries outside the U.S giving it a competitive advantage over its key rivals, some of which have no business outside the U.S. (Raheja par.4-5).
Another point of competitive advantage for Target is the exceptionally competent staff it employees. Customers visiting the retail store get to experience entirely different customer services as opposed to visiting some of its main competitions. Most consumers have indicated their willingness to visit a retail store where they know they will get the best experience regarding customer service. This is why most people will prefer visiting a Target store to purchase a good costing the same or less in other stores than do not have exceptional customer services (Leinbach-Reyhle par.3).
Also, the company has mastered the art of display unlike most of its competitors. Efficient and attractive display at the company ensures that the customers get to buy more than they had planned to buy. Most Target stores have merchandized bins positioned at the points of exit. The containers are filled with merchandize that cost between $1-10 and are positioned in such a way that the customers see them as they enter as well as they leave the store. This assures that the shoppers get to buy those products even if they had no intention of buying them. Compared to most of its competitors, Target’s display of merchandize is one that cannot get rivaled (Leinbach-Reyhle par.4-5)
In conclusion, Target has managed to stay on top of its game for long because it has mastered the art of customer care, and also managed to offer products that befit the needs of the customers. Projections show that in the coming years, the company will dominate the retail business in the U.S. and other states of the world.
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