Target Swot Analysis Essay

Throughout the years, Target has developed into its present position as the sixth biggest retailer in the United States by setting out to be different from its competitors. The company has built its reputation by linking a number of the best retail store factors such as fashion, quality, and service with the low costs of a discounter. Prior to the end of Target’s preliminary year, the company opened 4 more stores outside of the first in Minnesota and by 1990 over 50 Target stores were opened. In 1995, the company decided to branch out and offer grocery items outside of its general merchandises which they called SuperTarget. “[that same year the company also] introduced the Target Guest Card, the first store credit card in the discount retail industry. By 1998 the Guest Card had attracted nine million accounts (Gale Business
Insights Essentials).” The innovations did not stop there, mid 1999 the company started offering top-end Calphalon cookware and also a line of sleek small appliances and household products designed by Michael Graves. Through such additions, Target demonstrated how much it has matured not only in terms of size but as well as in terms of innovation proving that the company have been passionate about innovation for centuries. In other words, their drive to be innovated is not a new concept. As a matter of fact, it is through such innovations that Target succeeded in being different from its competitors. In the meantime, the company continued to grow at the rate of about 70 stores per year, venturing into key urban areas of Chicago and New York City.
Advancing to the 21st century, Target included 62 general stores and also 32 new SuperTarget, bringing the overall total Target Stores to 1150 and 100 SuperTarget in more location.
During the fiscal 2002 Target had its presence from coast to coast minus Vermont and profits reached $43.9 billion. Furthermore, Target introduced multiple additions to their company, such as, the in-store dollar section, Choxie gourmet chocolates, C9 by Champion line of performance athletic wear as well as “the SuperTarget tagline "Eat Well. Pay Less.®" This is our promise to provide a great selection of unique, affordable grocery items as a complement to the hip and fashionable low-priced merchandise for which Target is known (Target Through The Years).” As previously mentioned, Target is known for its innovation and it maintains that by providing a wide variety of products. This is a great aspect of the company because a wide variety of products is used to attract customers looking for an array of merchandises as well as increase the company’s value. Which is why by 2007, revenues had reached $63.4 billion, while net earnings were a record of $2.85
billion. In 2010, Target most prominent goal was to improve its credit card strategy. The company quit releasing new Target-branded visa cards in favor of its own Target Credit Card which permits their guests to receive a 5% discount on their purchases when they utilize the card. However, it is a well-known fact that the company suffered through a data breach that exposed millions of customers credit card information. It then completely screwed up its extension into Canada. The company’s Canadian expansion was presume to bring growth however, it ended in disappointment. In spite of these misfortunes, Target has corrected itself and is already showing great growth, from Figure 1 and 2 down below the sales for the fiscal 2015 is $73.8 billion while the net earning is $3.3 billion compared to the fiscal 2013 when the sales were $71.2 while the net earnings is $2.6 billion. Target's technique, one of the most imitated among mass merchandisers in the country, had always been a model of simplicity: provide customers with quality products at low prices. This is considerably more apparent 15 after the fact, as the company and the customers it served come to the end of the 21st century and Target Stores continues to achieve success.