What Is The Cause Of Target's Dilemma

In today’s consumer driven economy, Target is facing a dilemma. Many consumers, even myself, have discovered deep discounts while online shopping. The only problem with online shopping is you can’t inspect the item until you’ve already purchased it. Target is now experiencing a “showrooming” problem, as many consumers will review a product in store, then return home to purchase it online at a cheaper price (Kinicki & William, 2013). While competing with online only rivals, such as Amazon, Target discovered they had to act as these stores don’t have the overhead expenses, therefore can offer cheaper prices.

Target’s first step was working with their suppliers. Unique, limited time only products is one way the retailer felt they could increase
revenue. These type of store only items, ranging from clothing to furniture, makes it’s hard for other retailers to compete. Next, the retailer worked with suppliers to help lower prices on items found in other chains. This included offering subscription based items at a lower monthly price, such as Amazon currently offers. Finally, Target worked on revamping its online site. Some issues proved this task difficult, as they have had issues with their site crashing due to the amount of users. This is one area they will need to continue to work on as consumers are moving more to a trend of online shopping. Accordingly, by applying these ideas and finding ways to compete online, Target can increase their revenues and rival online competitors.