Target Case Study
TARGET CORPORATION CASE
I. Current Situation
A. Current Performance
Target is an upscale discounter that provides high-quality, on-trend merchandise at attractive prices in clean, spacious and guest-friendly stores. Target Corporation is the nation's #2 discount chain. The company operates about 1,745 Target and SuperTarget stores in 49 states, as well as an online business called Target.com. After a reversal in fortune that coincided with the onset of the deep recession in the US, Target is growing its grocery business, remodeling stores, and looking to grow outside the US. Its current Price/Earnings ratio is positive and its current Gross Profit Margin is over 30%.
B. Strategic Posture
1. Mission
• “Our mission is to make Target the preferred shopping destination for our guests by delivering outstanding value, continuous innovation and an exceptional guest experience by consistently fulfilling our Expect More. Pay Less.® brand promise.”
2. Objectives
• The objectives of the Target Corporation are to provide their customers with excellent service and high quality products at affordable prices. “Cheap chick strategy.
• To gain competitive advantage over its competitors by committing to growth and delivering superior return to their shareholders.
• To cater employee development through excellent human resource development.
• “At Target, diversity is much more than a goal or campaign. It’s a core value we integrate into every area of our business — from our suppliers, to our teams, to the shopping experience in our stores. We foster an inclusive culture that allows our high-performing and diverse team to drive innovation.” Gregg Steinhafel, CEO.
3. Strategies
• Target's Cheap Chic Strategy: Target decided to reposition itself as a mass merchandiser of affordable chic goods.
• Target's success was attributable to two key factors: the right kind of differentiation and distinctive marketing communications. 4. Policies
• Limiting
I. Current Situation
A. Current Performance
Target is an upscale discounter that provides high-quality, on-trend merchandise at attractive prices in clean, spacious and guest-friendly stores. Target Corporation is the nation's #2 discount chain. The company operates about 1,745 Target and SuperTarget stores in 49 states, as well as an online business called Target.com. After a reversal in fortune that coincided with the onset of the deep recession in the US, Target is growing its grocery business, remodeling stores, and looking to grow outside the US. Its current Price/Earnings ratio is positive and its current Gross Profit Margin is over 30%.
B. Strategic Posture
1. Mission
• “Our mission is to make Target the preferred shopping destination for our guests by delivering outstanding value, continuous innovation and an exceptional guest experience by consistently fulfilling our Expect More. Pay Less.® brand promise.”
2. Objectives
• The objectives of the Target Corporation are to provide their customers with excellent service and high quality products at affordable prices. “Cheap chick strategy.
• To gain competitive advantage over its competitors by committing to growth and delivering superior return to their shareholders.
• To cater employee development through excellent human resource development.
• “At Target, diversity is much more than a goal or campaign. It’s a core value we integrate into every area of our business — from our suppliers, to our teams, to the shopping experience in our stores. We foster an inclusive culture that allows our high-performing and diverse team to drive innovation.” Gregg Steinhafel, CEO.
3. Strategies
• Target's Cheap Chic Strategy: Target decided to reposition itself as a mass merchandiser of affordable chic goods.
• Target's success was attributable to two key factors: the right kind of differentiation and distinctive marketing communications. 4. Policies
• Limiting