Target Porter's Five Forces Analysis

The first Target store was created in 1962. Target is now the second largest discount retailer with 1,799 stores and 38 distribution centers across the United States. “Today, Target remains committed to providing a one-stop shopping experience for guests by delivering differentiated merchandise and outstanding value with its Expect More. Pay less brand promise”(Target Corp). An analysis of Porter’s Five Forces helps to outline Target’s strategic competitiveness, industry attractiveness as well as its competitive advantage with respect to other firms in the industry. In this particular industry, there are large capital requirements and market growth is slow. Target has already established a powerful brand name and has differentiated themselves through effective advertising and customer satisfaction making the threat of entry in this industry is low. In the discount retail industry, suppliers tend to have very little bargaining power. Having a …show more content…
The framework and capital expenditure required for stores to offer such a huge range of products such as groceries, pharmacy services, clothing, household items, and electronics is not achievable for most retailers giving Target a big competitive advantage and high firm attractiveness. Although there is a high risk of substitute products, there are fewer substitutes for the actual shopping experience at Target. When I shop at Target vs. Wal-Mart, I notice the differences in the layout of the stores and the friendliness and helpfulness of the employees. Wal-Mart has a large warehouse feel to its stores, which can make some customers feel overwhelmed. Where Target stores feel smaller and more organized, which makes finding products much faster and easier. The employees also seem more willing to help customers at Target stores, which comes from the company’s mission and