In order to adapt to the factors mentioned above, Wal-Mart, Target, and Costco need to find a Blue Ocean strategy to set themselves apart from the competition. Blue Ocean strategy is all about creating, raising, reducing, and eliminating factors that go into what a customer wants. Since this new generation of millennials are going to be having the most purchase power, it is important for grocery stores to raise or create convenience, variety, healthy alternatives, and value. Grocery stores can eliminate or reduce the high cost for healthy alternatives, membership fees, and food that is considered unhealthy. Using the correct strategy with these factors can establish a Blue Ocean strategy that caters to the millennial buyers and the health
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Target prides themselves on being a higher quality grocery store than Wal-Mart or other low cost grocery stores. Focusing on private labels and higher quality goods is a way that Target stands up to the competition. They have the reputation of having better quality groceries at a slightly higher price. In the future, Target needs to find a way where they can create value innovation. Having higher quality at a higher price will not be enough to compete in the heavy competition of the grocery store industry. Because Target is relatively new in this industry, they have a little bit of time to find their Blue Ocean strategy and set themselves apart from the competition. Being new to the grocery store industry could be a vulnerability to Target because people could have already chosen where they are going to shop for their groceries. As mentioned in the Porter’s Five Forces Analysis, the barriers to entry is high especially if a company wants to have a large percent of market share. Demographic and economic factors could be relevant when it comes to growth and innovation at Target. Economic factors could cause growth because of the improving economy and the more disposable income that the average household has. Since Target has slightly higher prices than some of their competitors, the improving economy will only help companies like Target. Target also needs to watch out for demographic factors so they can appeal to the new generation of
Target prides themselves on being a higher quality grocery store than Wal-Mart or other low cost grocery stores. Focusing on private labels and higher quality goods is a way that Target stands up to the competition. They have the reputation of having better quality groceries at a slightly higher price. In the future, Target needs to find a way where they can create value innovation. Having higher quality at a higher price will not be enough to compete in the heavy competition of the grocery store industry. Because Target is relatively new in this industry, they have a little bit of time to find their Blue Ocean strategy and set themselves apart from the competition. Being new to the grocery store industry could be a vulnerability to Target because people could have already chosen where they are going to shop for their groceries. As mentioned in the Porter’s Five Forces Analysis, the barriers to entry is high especially if a company wants to have a large percent of market share. Demographic and economic factors could be relevant when it comes to growth and innovation at Target. Economic factors could cause growth because of the improving economy and the more disposable income that the average household has. Since Target has slightly higher prices than some of their competitors, the improving economy will only help companies like Target. Target also needs to watch out for demographic factors so they can appeal to the new generation of