Target Strategic Audit
TARGET CORPORATION
STRATEGIC AUDIT
MGMT 7160
Fall 2013
Executive Summary
This report examines Target Corporation’s performance in a detailed strategic audit. The audit includes an external, internal and strategic analysis as well as a recommended course of action. The findings of the audit recommend a robust on-line/mobile presence to complement in-store sales, and to increase future earnings to remain competitive by building upon physical assets, brand value and logistical capabilities.
The external analysis reveals that Target Corporation must address the threat of a growing online and mobile commerce (e/m-commerce) market. Shoppers’ behavior and the accompanying technology are evolving. Sociocultural and technological trends in e/m-commerce support findings that online retail sales will account for 10% of total U.S. retail sales, $370 billion. E/M-commerce is expected to reach over $100 billion by 2017.
The internal analysis indicates that Target has numerous strengths that are of great value, especially its brand and customer service. However, weaknesses are also present, one of which is the website ‘Target.com’.
The internal analysis indicates that Target’s strengths of brand loyalty and customer service will assist its entry into e-commerce and attract this consumer segment. Current weaknesses, such as the website ‘Target.com,’ can be improved with a more e-market focus and deployment of resources. This includes Target’s relationship with suppliers, its inbound logistics, distribution channels as well as financial resources. These channels present an opportunity to expand into e/m-commerce. This may best be accomplished through multi-platform relationships that Target can build both with customers and suppliers.
Porter’s five forces suggest that overall the discount-variety store is not a very attractive industry for newcomers, due to prohibitive forces like access to distribution channels, threat of substitutes and rivalry
STRATEGIC AUDIT
MGMT 7160
Fall 2013
Executive Summary
This report examines Target Corporation’s performance in a detailed strategic audit. The audit includes an external, internal and strategic analysis as well as a recommended course of action. The findings of the audit recommend a robust on-line/mobile presence to complement in-store sales, and to increase future earnings to remain competitive by building upon physical assets, brand value and logistical capabilities.
The external analysis reveals that Target Corporation must address the threat of a growing online and mobile commerce (e/m-commerce) market. Shoppers’ behavior and the accompanying technology are evolving. Sociocultural and technological trends in e/m-commerce support findings that online retail sales will account for 10% of total U.S. retail sales, $370 billion. E/M-commerce is expected to reach over $100 billion by 2017.
The internal analysis indicates that Target has numerous strengths that are of great value, especially its brand and customer service. However, weaknesses are also present, one of which is the website ‘Target.com’.
The internal analysis indicates that Target’s strengths of brand loyalty and customer service will assist its entry into e-commerce and attract this consumer segment. Current weaknesses, such as the website ‘Target.com,’ can be improved with a more e-market focus and deployment of resources. This includes Target’s relationship with suppliers, its inbound logistics, distribution channels as well as financial resources. These channels present an opportunity to expand into e/m-commerce. This may best be accomplished through multi-platform relationships that Target can build both with customers and suppliers.
Porter’s five forces suggest that overall the discount-variety store is not a very attractive industry for newcomers, due to prohibitive forces like access to distribution channels, threat of substitutes and rivalry