Five Forces Model Analysis : A Company 's Industry Structure And Its Strategic Process

1123 Words Feb 20th, 2016 null Page
Five forces model analysis: A company 's industry structure and its strategic process analyzed with the help of Porters five forces model of competition that shapes every industry and the market. The other factors that lead to rivalry are balanced competitors, high fixed costs, and lack of product differentiation, slow anticipated growth and high exit barriers (Jurevicius, 2013). Target Corporation competes with a number of a non-traditional household creating a new market segment, product line expansion, increased quality products, clean and friendly customer service, convenient and personalized items. Target Corporation developed a unique layout, filling up the shelves with the top selling products, automating inbound logistics, online and in-store pick up, and low prices are some of the strategies addressing the forces.
This forces rivalry pressure among current competing sellers, posing the threat of substitute products as a medium pressure, and bargaining power of key input suppliers contributing to low pressure on Target Corporation. The slogan "Expect more pay less" eliminates any threat of substitutes with a lower price and higher quality products. The low-cost operation discourages any high switching cost and a source from many suppliers. Walmart has a global operation, but within U.S, the product differentiation and the clean and high-quality products at a lower price relieves these pressures. Target Corporation needs to make it as a preferred shopping destination…

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