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% Mervyn’s 9% Marshall Field’s 6%

3. Company Locations: 1,313 Stores and 136 Super Target Stores in 47 States Number of Employees: 328,000 Headquarters: Minneapolis, MN

4. Suppliers: Requirements for Suppliers: 1.Must have Electronic Data Interchange (EDI) capabilities 2.Financial Stability 3.Ability to Serve Multiple Companies 4.History of Successful Projects 5.Understanding of Target’s Business Practices 6.Ability to Provide High Quality Goods 7.Compliance with OSHA 8.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. Company’s use of IT/IS: For Suppliers: Electronic Data Interchange (EDI) Partners Online Website For Customers: Real-Time Customer Relationship Management System (CRM) Visa Smart Card Target.com

8. Threat of New Entrants More companies = more competition new entrants will compete for (marginal) market share Kohl’sE.g. Kohl’s – 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, Kohl’s

13. Target’s 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 Field’s Mervyn’s

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?