Target Corporation

1
Target Corporation

• By
• Monique Cuellar
• Anthony Ferrera
• Phung Truong
• Robert Dacanay
• Jenalee Vasquez

2
Current Status of Company

• 2003
• Revenues 48 Billion
• Market Share 17
• of Revenues
• Target Stores 84
• Mervyns 9
• Marshall Fields 6

3
Company Locations

• 1,313 Stores and 136 Super Target Stores in 47
  States
• Number of Employees328,000
• Headquarters Minneapolis, MN

4
Suppliers

• Requirements for Suppliers
• Must have Electronic Data Interchange (EDI)
  capabilities
• Financial Stability
• Ability to Serve Multiple Companies
• History of Successful Projects
• Understanding of Targets Business Practices
• Ability to Provide High Quality Goods
• Compliance with OSHA
• Ethical Business Conduct

5
Customers

• Median age 45
• Avg. Annual Income 57,000
• 90 of customers are female, of that, 39 have
  children
• 44 have college educations

6
Competitors

• Wal-Mart
• K-Mart
• JC Penny
• Costco
• Walgreens
• Best Buy
• Gottschalks

Indirect Competitors E-Bay Urban Outfitters
Williams-Sonoma May Saks
7
Companys use of IT/IS

• For Customers
• Real-Time Customer Relationship Management
  System (CRM)
• Visa Smart Card
• Target.com

• For Suppliers
• Electronic Data Interchange (EDI)
• Partners Online Website

8
Threat of New Entrants

• More companies more competition
• new entrants will compete for (marginal) market
  share
• E.g. Kohls recently opened stores in N.
  California Bay Area

9
Power of Suppliers

• Pressure suppliers place on a business
• Product is important to the buyer

10
Power of Buyers

• Pressure buyers (consumers) place on a business
• Switching to another (competitive) product is
  simple
• Products is not important to consumer can do
  without for a period of time
• Customers are price sensitive

11
Availability of Substitutes

• Existence of similar, competitive products
  service
• Specialty stores compete with specific and
  superior products
• (i.e. Ikea, Pottery Barn, Bed Bath and Beyond)
• Catalog/On-Line shopping

12
Competitive Rivalry

• -Intense competition between existing firms in
  the industry
• -Similar products and services from competitors
• E.g. Wal-Mart, K-Mart, Walgreens, Kohls

13
Targets Competitive Strategies

• Cost Leadership
• Differentiation
• Innovation

14
The use of IT/IS

• CAM

15
Opportunities

• Positioning of Company
• Reflecting a better image
• Exclusive agreements with leading companies
• Corporate Culture
• Walt Disney training program
• fast, fun, and friendly

16
Challenges

• Competing with retail giant Wal-Mart
• Handling returns
• Overseas labor

17
Strengths

• Strong Customer Base
• Product Diversity
• Target Visa Card
• Strong Growth
• Expansion

18
Weaknesses

• Poor Strategic Plans
• Poor Performances
• Marshall Fields
• Mervyns

19
Improvement with use of IT/IS

• Target.com
• Purchase products
• View Status
• Store Locations
• Weekly Ads
• E-coupons
• Team up with Amazon.com

20
The End

• Any Questions?