Company(Target) Firm Analysis - Research Paper Example

Target Corporation’s retail segment is inclusive of food discount stores, general merchandise stores, and an integrated online business, target.com. Target Corporation also operates a segment for credit cards that offers Visa credit cards and branded proprietary products. TGT currently operates one thousand seven hundred and sixty seven target stores across forty-nine states in the U.S. (Forbes.com 1). Target corporation’s fiscal year ends on January the 31st. This paper is a company research project on “Target Corporation”.

Target Corporation aims to reinforce the company’s value proposition via the striking of a balance between the core components of its brand mission and promise, i.e. expect more and pay less (Forbes.com 1). Expect more refers to target Corporation’s emphasis on trends, which differentiates it from its competitors, for example, Walmart while pay less is meant to underscore the Corporation’s notion concerning compelling presentation of its consumables and commodities as their key strategy.

Target Corporation’s recent rollout of their P-fresh expanded food format is likely to connect well to their consumers, which should improve traffic, as well as same store sales growth (Forbes.com 1). Solid underlying trends within target Corporation’s credit business are expected to provide a boost to the company’s earnings in the future. . Target Corporation’s well differentiated stores will give it an edge their main competitors, like Walmart. Their balance sheet and cash flow remain in a healthy position.

However, increased competition and a competitive pricing environment from Walmart are expected to portend an adverse effect on the future of target Corporation. TGT seems to be losing focus on the sale of women’s apparel that accounts for more than ten percent of their total sales (Forbes.com 1). Target Corporation’s credit business is increasing their exposure to various deteriorations in the credit trends of their consumers, for example, higher default rates that could have a significant impact on their profitability.

Their escalating utilities and healthcare costs could lead to increased SG&A expenses. Digest Group analysts estimate the Corporation’s long-term growth rate, as ranging from lows of nine percent to highs of fifteen percent, coming up with an average of 11.3% (Forbes.com 1). These analysts at Digest Group are of the belief that target.com is the company’s fastest growing segment. This segment provides an online shopping experience, which adds new online tools, for example, the online gift finder that is driving sales up.

In addition, TGT is building a seamless shopping experience for their stores, Target.com and their catalog. Over the last decade, TGT has utilized its marketing expertise in the transformation of the trademark bull’s eye into a symbol that is universally recognized, which, in turn, has helped to establish its retail format into a unique destination for clients from the United states (Forbes.com 1). TGT’s marketing approach is focused on the retail end as a brand. TGT perhaps, has played the