An Analysis of Target Corporation and Application of the Marketing Strategies - Case Study Example

TARGET CORPORATION INTRODUCTION The retail industry requires that the entire scope and potential of the business is managed in the most effective manner. Within the industry the need for consistently competing and developing the business is also high. The demonstration of ethical practices and being aware of the strategies which the competitors are implementing is extremely essential for the progress and development of the business. Within the US business segment Target is one of the most renowned player which has set the grounds of business and development through ethics. The organization aims at creating the value for the customers by offering them a different flair passion and design. The business segment within the industry is increasing as the epitome is centered towards amazing guest experience (Target Corporation, 2012). This report aims at discussing a publicly traded corporation within the industry listed on the EDGAR database. This elaborates the filing of the companies on the Securities and Exchange Commission. The goals of Target Corporation are designing an infrastructure through which a diverse team can be formed. The sole goal of the team is maximizing the guest experience and retaining the clients within the industry. All these actions set a continuation which leads to success of the business. Strong actions and formation of the communities is the measure using which the competition within the industry is managed. The ethical actions implemented create a strong reputation for the business within the industry. PESTLE ANALYSIS The PESTLE analysis of Target Corporation determines the position of the business within the industry. Understanding of the Political, Economic, Social, Technological, Environmental and Legal aspects of the business determines the progress of the business. Operating in the American retail industry Target is ranked the second largest after Wal-Mart. The organization kept on progressing with the appropriate utilization of all the factors. The company stands amongst the top 30 in the listing characterized by the Fortune 500 (Target Corporation, 2012). Political The changes and transformation of the regulations within the industry impact on the share of the retail stores. The analysis of the bill regulated in the health care segment and analyzing the changes in the regulations within the sector determines the progress of the industry in the business segment (Weber, 2014; KPMG, 2012). Economical The operations of the business in the international industry rely heavily on the cost of fuel and economic stability. Managing the cost within the segment is based on the economic well-being within the industry. This aids to the development of the business (Weber, 2014; KPMG, 2012). Social The social norm such as the culture and the behavior of the workforce determines the policies which the business must set. Social factors play a vital role in the development of the business (Weber, 2014; KPMG, 2012). Technological The marketing segment within the industry is progressing and hence the businesses must utilize the resources and operate within the industry. Availing the resources and keeping the business up to date with modern technology are the factors using which the business can be developed. With technology the errors in the management are rectified (Weber, 2014; KPMG, 2012). Legal Certain ideas and marketing methods require that the laws and regulation of the industry in which the business is operating is noted. All these are essential for the progress and development of the business (Weber, 2014; KPMG, 2012). Environmental The culture and social factors of the business are extremely necessary for the progress of the business. The strategies and ethical structure of the business must be formed keeping in mind these policies (Weber, 2014; KPMG, 2012). The most important factors assessed in the PESTLE analysis for the business are the Economical and Technological factors within the industry. Understanding the development of the economy and keeping the firm updated with the technological aspects is essential for the progress and development of the business within the industry. The competition within the industry faced by the participants is intense and requires that any sort of progress or development must be implemented in the business model. Economic factors of the society also show the progress through which the firm establishes its reputation in the industry. The analysis of these can be done through the position of the firm in the existing industry. (Target Corporation, 2012) The details of the financial highlights and the breakup of total sales of the business within the industry can be seen in the chart above. The largest segment of sales of the business is realized through the health, beauty and household essentials segment within the industry. FIVE FORCES OF COMPETITION The model which has been shown below explains the competition within the industry. The strategies which the firm needs to develop in the industry must be aligned in such a way that the existing capabilities of the business in measure of the existing competitors are carefully assessed. The firms require that the threat of the new entrants is managed. The firms must assess the bargaining power which they have developed over the years so that bargain can be done with the suppliers and competitors. Besides this the substitute products or services also require to be assessed. All the components of the Porter’s model are essential for the development of the business (David, 2007). (Myers, 2013) All these relevant factors are essential for Target Corporation so that the development and the expansion scope can be assessed appropriately. The competition in the retail business segment by Target is done with the modern and traditional general merchandisers who operate in the apparel industry. The wholesale clubs and drug stores operating in the supermarkets work using the retail commerce. The need for differentiating is very important for sustaining the competition and staying ahead in the business segment (Target Corporation, 2012). In the past the firm has sustained competition from the substitutes and managed innovation in the business process so the competition can be sustained. This is also essential for managing rivalry amongst the existing competitors. The technology and innovation which the business is implementing will determine the progress of the business within the industry. This will also lay the ground for future development by the firms (Target Corporation, 2012). INTERNAL AND EXTERNAL BUSINESS ENVIRONMENT The internal and external environment of the business can be determined through the SWOT analysis using which the progress functions of the business can be determined. In the business development the SWOT analysis presents an understanding of the business and the development to which it will reach in the future. The internal business analysis is done by assessing the strengths and weaknesses of the business. Similarly the external factors of the business are determined through the opportunities and threats which are being implemented within the industry. Analysis of the business from all the angles determines the progress scope of the business (David, 2007). In the chart below the SWOT analysis of Target Corporation will be presented. STRENGTHS Target has most of its strategies based on the ethical norms within the society. These factors of the business make it an effective place for the employees and customers. The structure of the business is ensuring that the customers are satisfied (Target Corporation, 2012). WEAKNESSES The organization is penetrating at a slow rate in the international markets. The expansion by the competitor firms is high in the industry. Staying updated with the technology and market is essential for the development of the business (Target Corporation, 2012). OPPORTUNITIES The development and exploration of business in the international business segments are the opportunities which the business can use. The development of the business can be enhanced by exploring the new business growth scope in the industry (Weber, 2014; KPMG, 2012). THREATS The competition in the industry is high and the firms require that all the threats in the business environment are managed appropriately. Any sort of failure in getting updated to the technology or implementation of the business in the industry is essential for the expansion scope of the business (Weber, 2014; KPMG, 2012). The SWOT analysis is the basis through which the internal and external development of the business can be analyzed (David, 2007). The strength and weaknesses determine the operating significance and internal structure of Target as a business firm. The strengths of the firm must be used for progressing and structuring the strategies through which the goals of the business can be acquired. The weaknesses of the business must be rectified for progressing. All these actions of the business are essential for expansion and diversifying the business in the international business environment. This assists in the development and progress of the firm. The external progress of the firm shows the development and operating efficiency within the industry. Competition in the industry is high so the business must understand that for the development of new opportunities and rectification of threats the firm need to keep assessing the business scope. The development within the industry requires assessing the expansion strategies so that the business can expand globally and enter the new business domains. Target Corporation must use the expansion and development strategy at all business phase so that the development of the business within the industry can be analyzed and assessed continuously. All the development must be based on the future goals using which the business expands in the industry. TECHNOLOGY AND AVAILABLE RESOURCES Target Corporation is developed within the industry and the scope of the business is on constant expansion (Target Corporation, 2012). The strategic managers of the business are ensuring that the business progress is realized and using this expansion strategy of the business can be developed. The existing technology possessed by the businesses is directed towards innovation. In this competitive environment if the businesses fail to compete and structure the technologies within the business setup then progress is halted. All the similar firms in the retail industry ensure that they are updated with the business setup and using this entire business scope is realized and managed. The value chain system of the business depends on the primary business activities and the supporting activities of the business. The primary activities of the business rely on the inbound logistics, operations, out bound logistics, marketing & sales and services. The business requires that all the operating activities are managed in such a way that the entire business scope is expanded within the industry. Other than the primary business activities are the supporting activities of the business which effect on the organization, human resource, technology and purchasing of the business in the industry. The value chain is important and determines the strategies which the business must develop for the progress of the organization (David, 2007). Target Corporation is the second largest retailer in the US industry (Target Corporation, 2012). This is because the value chain of the business is the priority of consideration. The businesses ensure that all the development scope functions surrounding the value chain are efficiently managed. Other than this the business scope is developed so that the capabilities of the business can be realized. In the retail business, especially those operating online require that the technological advancements are sufficient for protecting the customers. The core competencies of the business and the capabilities of the business aim at ensuring that the customers are satisfied and that the transactions which they make online are secured and protected. The firm must use all the available technology and resources in such a way that the customers are satisfied. Acquiring the trust of the customers is also essential for the progress of the business (Target Corporation, 2012). Technological advancement and the operational efficiency of the business are those factors using which the business can expand and develop. The value of the firm for the customers must be enhanced and the needs of the customers must be assessed so that the firms reach to a significant level of expansion. CONCLUSION Target Corporation is widely recognized within the industry as a leader in the retail industry. The analysis of the business using different tools such as the PESTLE analysis and the Porter’s five forces are essential for the development of the business. This will help in determining the competition using which the entire business scope will be developed. The internal and external analysis of the business is also essential for determining the business expansion opportunities. The strengths, weakness, opportunities and threats of the business are essential for the business. This assesses the development of the business using which the entire business scope can be managed. These are the concepts of the business administration which assists in understanding the development strategies of the business. This report is an analysis of Target Corporation and application of the marketing strategies by the firm for ensuring the development in the industry. The discussion in the report presents the challenges and hurdles which the firm is facing within the industry. The firm requires that the strategies are developed through which the market position of the business can be secured. This requires the development of the business model. Advancing technologically and facing competition is essential for ensuring that the business sustains the competition within the industry. REFERENCES David, F. (2007). Strategic Management: Concepts and cases. Upper Saddle River, NJ: Prentice Hall KPMG. (2012). Retail industry outlook survey: modest gains keep cautious optimism in style. Retrieved 28 January, 2014, from http://www.kpmg.com/US/en/IssuesAndInsights/ArticlesPublications/Documents/2012-kpmg-retail-outlook-cautious-optimism-in-style.pdf Myers, M. (2013). Five forces by Michael Porter – fundamentals through graphics. Retrieved 28 January, 2014, from http://masonmyers.com/five-forces-michael-porter-business-fundamentals/ Target Corporation. (2012). Annual report 2012. Retrieved 28 January, 2014, from https://corporate.target.com/_media/TargetCorp/annualreports/content/download/pdf/Annual-Report.pdf?ext=.pdf Weber, A. (2014). Retail industry analysis 2014 – cost and trends. Retrieved 28 January, 2014, from https://www.franchisehelp.com/industry-reports/retail-industry-report/ Read More