Target Swot Analysis Essay
Target SWOT Analysis and Porter’s Five
December 3, 2011
The purpose of this paper is to discuss Target’s strengths, weaknesses, opportunities and threats. This paper will also talk about how Porter’s Five affects Target’s business decisions.
Target’s mission statement: “Our mission is to make Target your preferred shopping destination in all channels by delivering outstanding value, continuous innovation and exceptional guest experiences by consistently fulfilling our Expect More. Pay Less brand promise.” (target.com)
One of Target’s strengths is that it’s one of the largest retail outlets. Target is a one stop shop for its consumers. Target …show more content…
Although consumers can shop at stores live Costco, Best Buy and Sear, they do not have the convenience of a one stop shop that Target offers.
Bargaining Power of Consumers
Although Target‘s prices may be higher than its competitor Wal-Mart; Target’s customers appreciate the quality of their products. Target caters to a more upscale clientele who are more concerned with quality products than lower prices.
Bargaining Power of Suppliers
Due to Targets vast array of products offered, they have the ability to pressure their suppliers for competitive prices, so Target basically dictates to its suppliers rather than the suppliers dictating to Target. Suppliers know that Target is an important customer due to the amount of products that it purchases for their stores. Second only to Wal-Mart, Target is a one stop shop with quality products. (target.com)
In conclusion, Target will continue to be a major player in the big box retailer game. Second only to Wal-Mart, Target will apply more pressure to Wal-Mart once they open stores in Canada. Target also has opportunities in their continued pressure of its suppliers to ensure the lowest price possible, so that customer can continue to expect more but