Target Swot Analysis
The target corporation is one of the biggest chains of retail stores in the U.S. It sells everything from household items to, clothing, pet supplies, etc.
The revenue of the company in 2016 was more than $ 69 billion. The company operates 1,799 stores with 38 distribution centers.
Today we will go over a SWOT Analysis of the Target Corporation to have a better understanding of the business.
Target Strengths 2021:
- Target is a well-established and recognized brand name that is highly respected by customers.
- Solid brand name and notoriority, resulting to band loyalty.
- Strong Marketing. Even though they are a direct competitor to Walmart, the overall brand appeal is completely different. It’s not considered a full-on “budget” store and has a much more fashionable and modern profile.
- Pricing. They are offering products that are not considered cheap in quality, in a modest price. This is what customers love about the brand.
- Strong workforce development plan, as in 2021 Target announced that it would cover the college education cost for all of their employees. More than 340,000 employees will benefit from this decision.
Target Weaknesses 2021:
- Smaller and less diversified compared to its competitors like Walmart, Kroger Inc., Costco and Αmazon. Less diversification means higher vulnerability in hardships and economic downturns.
- Many customers would prefer a shopping experience in a smaller neighborhood store compared to such a “faceless” buying process.
- Ecommerce department is significantly lagging behind compared to each big competitors like Amazon and Walmart. Despite their efforts, the company has not managed to come close to the other two giants.
- Target hasn’t managed to take a piece of the pie in other areas of retail-like financial services or gas stations. A prime example of a company taking over this space is Kroger which operates more than 2.000 gas stations.
Target Opportunities 2021:
- The ever-growing space of the e-commerce retail is definetely the biggest opportunity of the target corporation. The high likeability of the brand from millenials makes doubling down on selling clothing and fashion a no-brainer. Millenials prefer online shopping in the first place so the situation is more than ideal.
- The declining financial power of the middle class in the U.S is increasing the demand of value for money purchases. Target’s strongest card of not being considered a store for “broke” people if utilized correctly will increase the sales.
Target Threats 2021:
- E-commerce is taking over the space, and Target cannot compete with Amazon in any way.
- Walmart on the other side is also pushing hard by doing something that Target is not doing at all. Open many small stores in multiple neiborghood markets.
- Costco has started to take over the home furniture and clothing space, which was traditionally a Target territory. If Target doesn’t address the issue by doing aggressive movements, it will eventually lose more and more of its market share.
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References:
1) Target Corporation, Annual Report 2020
2) Forbes 2021, Target Announces It Will Pay For Its Employees’ College Education
