Summary Of Target Porter's Five Forces Analysis

There are many retail companies that are competing for market share. That being said, Target is one of the well known retailers in the United States that encounters challenging competition from other retailers just like them. Target is a retail discount store that offers both high end products for a lower price as well as low end products that are also sold at their rival stores. Here is the five forces analysis for Target that will “analyze the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry.” Additionally, Porter’s three generic strategies will describe how Target can gain competitive advantages. Furthermore, an explanation on how information technology has helped or hinder Target’s viability. There are many factors as to why Target’s buyer power is medium. Target has a large distribution of products which allows consumers to have a diversity of products to be bought. In the past years, the company has also been able to build their reputation which is now stronger and better than ever. However, due to the amount of other retailers that include online or in-store access makes it easy …show more content…
These three strategies include: broad cost leadership, broad differentiation, and focused strategy. Target knew that because their retail competition, Walmart, was already low-cost production like them they “decided to reposition itself as a mass merchandiser of affordable chic goods.” Target’s broad differentiation has presented a shopping experience that has made purchasing easier with the mobile application. Target stores have factors that differ from their competitors like the “cleanliness of stores, shopping environment and experience, and shorter waiting time to pay.” Target’s focused strategy is to “focus on offering competitive prices across our entire