By: Leigh Blackmon, Justin Napier, Sara Ratliff, and Brian Roundtree Target Corporation By: Leigh Blackmon, Justin Napier, Sara Ratliff, and Brian Roundtree

Executive Summary The Firm The Industry Upscale discount chain that offers trendy merchandise at affordable prices The Industry Dominant Firms – Wal-Mart, Costco, K-Mart Keys to Success- Marketing, Promotion, Brand Loyalty, Differentiation

Mission Statement At Target, our mission is to create a loyal customer base by selling a trendy, yet affordable range of merchandise. We are also interested in being socially responsible and do not define the success of our company simply by the bottom line. We are committed to the social, economic, and environmental welfare of all communities. Finally, it is our mission to encompass quality, style, and trend into all aspects of our corporation to ensure customer satisfaction.

External Environment Economic Social Technological Customer’s amount of disposable income Customer’s propensity to spend Social Age of customers Beliefs of customers Technological Technological forecasting Giving customers the ability to shop from the comfort of their own home

1= Most Important, 5= Least Important Ranking of Porter’s Five Forces Present- 1) Substitutes 2) Rivalry 3) Powerful Buyers 4) Powerful Suppliers 5) Threat of Entry 1= Most Important, 5= Least Important

Buyers Suppliers No similar companies Ex. 1-Including purchase volume Ex. 2-Including differentiation of inputs Wal-Mart, K-Mart, and Costco Need more product differentiation Increase buyer volume Establish brand identity Providing quality and performance in each store

Threat of Entry Difficult to establish large companies Hard to imitate brand identity Large capital requirements

Rivalry Substitutes None- Due to quality and fashion Results in customer loyalty Results in brand identity Wal-Mart K-Mart Costco Differentiation is key factor= Fashion Push Target’s brand identity

Company Profile Primary Activities Customer Service Marketing and Sales Advertising, promotions, market research, planning Operations Production and Quality Assurance

Company Profile Secondary Activities Human Resources Technology Recruitment, hiring, training, and development Technology Conduct research New trends and interests

Company Profile Strengths Loyal customer base Readily available products Constantly produces new ideas and exclusive products

Company Profile Weaknesses Higher prices than Wal-Mart Population response to the economy Not a global retailer Other companies, such as Wal-Mart, are gaining a competitive advantage Not all stores are SuperTargets Customers want a one-stop store

Financial Analysis - Revenue Target 2001: $32.5 billion 2005: $51.2 billion Costco 2001: $34.1 billion 2005: $51.8 billion Wal-Mart 2001: $180.7 billion 2005: $285.2 billion

Revenue

Financial Analysis – Net Income Target 2001: $1.1 billion 2005: $2.4 billion Costco 2001: $0.6 billion 2005: $1.06 billion Wal-Mart 2001: $6.2 billion 2005: $10.2 billion

Net Income

Profitability

Asset Turnover

Firm’s Position / Core Issue Competition with Wal-Mart Target has one-fifth the sales of Wal-Mart Firm’s Position Based on more than just pricing Strive to encompass style, quality, and trend

Long Term Objectives Increasing Market Share Scenarios Achievable and Measurable Scenarios Best Case: Wal-Mart going out of business and Target having a significant share of market Worst Case: Target going out of business Most Likely: Wal-Mart maintains market share and Target’s profit margin, sales, and net income will continually increase

Corporate Level Strategy Growth International Expansion Create more competitive advantage Increase market share

Business Level Strategy Strategic Business Unit Target Food Centers, Target Pharmacy, Target Retail Merchandise Generic Strategies Differentiation Focus Grand Strategies Innovation Product Development

Strategic Choice Differentiation Higher quality, more trendy clothing, better style Drive-through Pharmacies Expansion into SuperTargets

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