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

2. 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

3. 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.

4. 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

5. 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

6. 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

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

8. 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

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

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

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

12. 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

13. 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

14. Revenue

15. 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

16. Net Income

17. Profitability

18. Asset Turnover

19. 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

20. 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

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

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

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

24. Any Questions?