Target CorporationTarget Corporation

By:Monique CuellarAnthony FerreraPhung Truong

Robert DacanayJenalee Vasquez

Current Status of Company:

• 2003• Revenues = $48 Billion• Market Share = 17%

% of Revenues

• Target Stores 84%• Mervyn’s 9%• Marshall Field’s 6%

Company Locations:

• 1,313 Stores and 136 Super Target Stores in 47 States

• Number of Employees:328,000

• Headquarters: Minneapolis, MN

Suppliers:

Requirements for Suppliers:

1.1. Must have Electronic Data Interchange (EDI) Must have Electronic Data Interchange (EDI) capabilitiescapabilities

2.2. Financial StabilityFinancial Stability3.3. Ability to Serve Multiple CompaniesAbility to Serve Multiple Companies4.4. History of Successful ProjectsHistory of Successful Projects5.5. Understanding of Target’s Business PracticesUnderstanding of Target’s Business Practices6.6. Ability to Provide High Quality GoodsAbility to Provide High Quality Goods7.7. Compliance with OSHACompliance with OSHA8.8. Ethical Business ConductEthical Business Conduct

Customers:

• Median age = 45

• Avg. Annual Income = $57,000

• 90% of customers are female, of that, 39% have children

• 44% have college educations

Competitors

• Wal-Mart • K-Mart • JC Penny• Costco• Walgreens • Best Buy• Gottschalks

Indirect Competitors:E-BayUrban Outfitters

Williams-Sonoma MaySaks

Company’s use of IT/IS:

For Suppliers:

• Electronic Data Interchange (EDI)

• Partners Online Website

For Customers:

•Real-Time Customer Relationship Management System (CRM)

•Visa Smart Card

•Target.com

Threat of New Entrants

• More companies = more competition

• new entrants will compete for (marginal) market share

• E.g. Kohl’sKohl’s – recently opened stores in N. California & Bay Area

Power of Suppliers

• Pressure suppliers place on a business

• Product is important to the buyer

Power of Buyers

• Pressure buyers (consumers) place on a business

• Switching to another (competitive) product is simple

• Products is not important to consumer; can do without for a period of time

• Customers are price sensitive

Availability of Substitutes

• Existence of similar, competitive products & service

• Specialty stores compete with specific and superior products(i.e. Ikea, Pottery Barn, Bed Bath and Beyond)

• Catalog/On-Line shopping

Competitive Rivalry

• -Intense competition between existing firms in the industry

• -Similar products and services from competitors

• E.g. Wal-Mart, K-Mart, Walgreens, Kohl’s

Target’s Competitive Strategies

• Cost Leadership

• Differentiation

• Innovation

The use of IT/IS:

CAM

Opportunities

• Positioning of Company• Reflecting a better image• Exclusive agreements with leading

companies

• Corporate Culture• Walt Disney training program• “fast, fun, and friendly”

Challenges

• Competing with retail giant Wal-Mart

• Handling returns

• Overseas labor

Strengths

• Strong Customer Base

• Product Diversity

• Target Visa Card

• Strong Growth

• Expansion

Weaknesses

• Poor Strategic Plans

• Poor Performances• Marshall Field’s • Mervyn’s

Improvement with use of IT/IS

• Target.com• Purchase products• View Status• Store Locations• Weekly Ads

• E-coupons• Team up with Amazon.com

The End

Any Questions?