I read the case study titled “Target Is Trying to Overcome the Problem of “Showrooming”. In the case study of “Target Is Trying to Overcome the Problem of “Showrooming” the Target Corporation was basically tired of being used due to showrooming (Levinthal, 2012). According to (What is Showrooming. n.d.), “Showrooming is when a shopper visits a store to check out a product but then purchases the product online from home”. Showrooming occurs because many people prefer seeing and touching the merchandise they buy and many of the items are available at lower prices through online vendors (What is Showrooming, n.d.). Target Chief Executive Gregg Steinhafel and the Executive Vice President of merchandising Katee Tesija Target Corporation contacted its vendors and wanted its them to create special …show more content…
The vendors had little choice in the matter and had to do what the Target Corporation said because of them being the second largest discount chain next to the Walmart Corporation (Levinthal, 2012). The Target Corporation had a problem that they had to face because they failed to address the main problems that traditional retailers face because online-only retailers had very low labor costs and did not collect sales tax in many states (Levinthal, 2012). The Target Corporation eventually launched and upgraded its website and has operated by Amazon (Levinthal, 2012). Amazon is a place online were customers can find and discover anything they might want to buy online at lowest possible prices (Amazon.com, n.d.). Cloud data storage and fees that Amazon charges others to sell on its website makes Amazon products sell so cheaply which subsidizes the rest of its business (Levinthal, 2012). The Target Corporation produced exclusive products by teaming up with fashion designer offering time-limited discounts on clothing collections, and the opening of a series of temporary boutiques that features clothes, food, and home furnishings from popular regional stores
According to Kantar Retail, most of Target’s shoppers are younger on average than its rivals, and more educated. That means it has to consistently offer something different and appealing; it emphasizes more on the latest-trend apparel, eye-catching home décor and exclusive designer merchandise than its competitors. This results in a willingness to pay a bit more for items by customers who are willing to pay a bit more. Moreover, this successful
According to www.targetcorp.com, Target is an upscale discount retail chain that sells quality products at attractive prices, and prides itself on clean, spacious, and guest-friendly stores. Target is the second largest "general merchandise" retailer (behind Wal-Mart); selling almost anything one would need to complete the "one stop shop", especially with the addition of the SuperTarget stores. The first Target opened in Roseville, Minnesota in 1962. Since then, 1,330 stores located in forty-seven different states, which includes the 141 SuperTarget stores, have opened nationwide. Target also has twenty-two distribution centers located in nineteen states. In addition to the vast number of store locations, Target also has other businesses that include: Target.com, Target Financial Services, Associated Merchandising Corporation, and Target commercial Interiors. Through all the key businesses, Target employs nearly 300,000 people from diverse backgrounds. The current Chairman and CEO of Target is Bob Ulrich.
Target is also a company that is built on ethics. With integrity instilled in all of their team members, everyone helps to uphold Target’s great reputation and maintain their morals of honesty and family. Another big part of Target’s company culture is their focus on community service. After working for Target, one is truly able to understand the meaning of giving back. At Target, team members dedicate their volunteer hours to work with schools, nonprofit organizations, charities etc. to make a difference in the world.
Founded in 1962 by George Dayton of the Dayton Corporation, the first store was opened in Roseville, Minnesota, and served as the prototype for all Target stores opened since then and changed how consumers thought about discount shopping.1 Each store was designed with the customer in mind; the founders of Target realized that the appeal of clean, organized, and well-designed stores would set them apart from all others in the industry. In every store, related departments are conveniently placed next to each other. In 2000 the company was renamed the Target Corporation and now has over 1300 stores in 47 states, including more than 140 SuperTarget stores, as well as a consumer-friendly website. Many stores now have a pharmacy and Club Wedd and Target Baby gift registries. SuperTarget stores even have a separate side devoted to groceries. The corporation also offers the Target Visa Credit Card and the Target REDcard, which is a credit card that can only be used in Target stores or through the website.
1. The Discount Department Store. Target prefers to be called as the latter instead of just department store. Expect more, pay less. With this tagline, the customers expect to purchase more items and pay the least amount possible. Not like other retail industries like its competitor Kmart and Wal-Mart, Target maintains retail value in terms of product offerings. They are known in their designer’s items in clothes, exclusive beauty products, categorized and functional goods, and seasonal offerings. It also sells the greatest number of gift cards among its rival business.
The Target Corporation formerly known as “The Dayton Dry Goods Company” is a major retailing company that was founded in 1902 in Minneapolis, Minnesota by George Draper Dayton. It is ranked the second largest discount retailer in the United States and ranked thirty- sixth on the Fortune 500 as of 2013. The Target Corporation has been serving this nation with the best price possible goods since their expansion from “Dayton” and is continuously winning the hearts of consumers with their dedication and service. A phenomenal merchandising strategy and cross channeling has enabled this upscale discounter to serve their purpose of customer loyalty and fulfill their promise of “Expect more and Pay less”.
As compared to its rivals, Target has presented its brand as a middle-class brand which assists in attracting customers that find other stores like Walmart unpleasant
When looking at Target’s value chain, it is evident that they apply aspects of both design and corporate responsibility while thinking through every decision they make to ensure it lives up to their values and helps the world. Starting at the top, they look at design. Design is what they call the heart of the business. Looking at every detail from the big picture to the small things that make a Target shopping experience, the goal is to do it with greater efficiency, style and smarts. (Corporate Responsibility Report, 2014).
Professor David Soberman describes his disappointing experience, “I have gone into Target stores looking for things, and the product line is not where it needs to be. You want certain things, but you can’t find them. You can find them at Wal-Mart. I just took my child down to school at Queen’s, and I was trying to buy things. I got 95 per cent of what I wanted at Wal-Mart. The other five per cent I got at Canadian Tire. I did go into Target, but I couldn’t find what I needed”
Another part of Amazon’s retail strategy is to serve as the channel for other retailers to sell their products and take a percentage of cut of every purchase. Amazon does not have to maintain inventory on slower-selling products. This strategy has made Amazon a ‘long tail’ leading retailer, expanding its available selection without a corresponding increase in overhead costs.
Target Corporation pioneered value chain activities like focusing on customer experience through superior marketing, ability to attract global talent, sustain in and outbound supply logistics, develop supplies with a high-quality vendor and partners, a great customer service, extend return by 30 more days if purchased through Target brand store cards, and a skilled workforce supports its generic strategy of "Expect more Pay Less" improves competitive position that its rival cannot match. --
One of the greatest opportunities for Amazon is an Online Payment System. The online system allows the company to reduce transaction fees and increase ease of use for their customers. Internet sales are increasing at a fast pace. This is a product of increased fuel prices, which make driving to a store less likely, and foreign purchases. This development allows foreign purchases to buy clothing as it becomes more popular abroad. Amazon’s biggest competitors can include retail stores that online stores such as Target, Best Buy, and Walmart among others, these can be considered the most dangerous for them since they have strong market share and can be a direct competitor since they attack the same market. Amazon wish to compete in prices, offering
According to Schafer (2013), Target Corporation desire is to improve Target Brand and be a better version of Target with an incremental products and services. Target Corporation acquisitions counter any threat from other rival online retailers and allow Target Corporation to cross promote between Target and the new entity strengthening its
On the Target website, it is stated that their mission is to, ”…fulfill the needs and fuel the potential of our guests. That means making Target your preferred shopping destination in all channels by delivering outstanding value, continuous innovation and exceptional experiences—consistently fulfilling our Expect More. Pay Less.® brand promise” (Target Corp). It has 1,799 stores in the United States alone and has locations in India. In 2014, they made $72.6 Billion. Similar to Wal-Mart, Target sells household essentials, apparel, groceries, pet supplies. health, beauty items, home furnishing, entertainment, and electronics. Both also have their own branded items to sell at a lower price than the commercial brands, and each corporation also has a
Target Corporation was founded in 1902 and is headquartered in Minneapolis, Minnesota. It sells its products through its stores and digital channels, including Target.com, and presently operates 1,826 stores. This report will focus on the capital structure of Target Corporation, discuss Target's most recent short-term and long-term financing decisions, give an analysis of the economic, business, and competitive background in which they operate, discuss Target's international investment and financing opportunities, review Modigliani and Miller’s capital structure theory as it relates to Target Corporation, and finally offer possible outcomes that would optimize Target's financial policy and capital