Target Corporation Company is a discount store retailer in the United States and is counted as the second largest behind Wal-mart. George Dayton originally founded the Company, and the headquarters is in Minneapolis, Minnesota (Dayton, & Green, 2008). Target Corporation has been growing with years leading to its success as the second largest retail store in the United States.
Core Products and Services Offered by Target Corporation
Target Corporation is a retail store with the retail format that includes discount store Target, hypermarket Super Target and a flexible format store that is consolidated under the Target branding. Therefore the company offers a variety of products that can be in a retail store.
A Brief History
The company was originally started in the year 1902 where it was first named as Goodfellow Dry Goods, and a year later it was named Dry Goods Company, but later in the year 1910, the company was named Dayton Company. In the year 1962, the company opened the first Target store in Roseville, Minnesota ad in the year 1967 the parent company was renamed Dayton Corporation. The Target Corporation earned itself a highest earning division in the 1970s and the 1980 and 90s it was expanding stores nationwide. In 2000, the company was renamed as the Target Corporation, and in 2004 the company divested itself over its last department store. As to date in 2017, Target Corporation operates 1806 store throughout the United States.
Key Current Competitors
The Company generates revenue through the offering of competitively priced goods. Therefore there are similar companies that are competing directly with Target Corporation that include Wal-Mart and Costco. In the retail industry, they are not manufactured by the retailers, but they are obtained from the manufacturers through a contract agreement, and so does Target Corporation.
The first strength is that the company is well known after Wal-Mart as a discount retailer of the products or items displayed; therefore it has a good market position. Secondly, the company is enjoying a 30th position in the Fortune 500 list. Thirdly, Target Corporation has a huge market share in the United States because it covers all locations in the country except Vermont. The fourth strength is that the company has diversified its store chain. Every year there is an increase in revenue of the Target Corporation and the current revenue is $67.390 billion. The company is known to be having an appealing environment that is safe and sound which in return attracts many customers to come and shop at the quality places. Target Corporation as rated as the top gift card seller in the United States and this fact has attracted many customers.
Target Corporation has neglected the international presence because its demographic focus is only in the United States. The company is undergoing some intensive involvement in lawsuits making it lose its attention on the market somehow. The products of the company are a bit expensive compared to Wal-Mart’s products because they emphasize on quality of the product during manufacturing from the manufacturer. The company’s wages are not attractive to the employees. Its Brand’s popularity is seen to be relatively low compared to the competitors’ brands. Inside the malls of the company, the atmosphere is too silent for a person to shop. In many occasion, there have been complaining concerning the selling of over dated products or brands from the company.
The company has announced an expansion to Canada through the acquiring of a Canadian Zeller’s chain. There is some estimation that there will be 100 to 150 stores in Canada that will facilitate the capturing of other customers who are outside the United States. The company is now focusing on reducing operational costs and having an increase in revenue ratios. The company has private labeled products that are on the way which will increase commendably because they are more focused on the target customers as well.
Target Corporation is facing competition from Wal-Mart and K-mart since both of them share almost same products range, and they share the same place of service. The second threat is that there is a new inflation force that is forcing out the consumers of various products to move towards the low price rather than the quality products (Wilson, 2017). Therefore Target Corporation can easily suffer a blow of losing consumers of their goods because their main emphasize is on the quality of a product and not the price that the product has. There is an increase in the interest rates of the products in Target Corporation due to an increase in the government tax. The increase in interest rates risks pushing away customers.