Target Corporation Swot Analysis

The SWOT analysis: The study of the firm's Strengths, Weaknesses, Opportunities and Threats called SWOT analysis, a key step in flushing out known performance issues that are important to the growth of the organization addressed in the corporation strategic plan. The issues identified in the SWOT analysis help leadership to come up with a plan and strategy to achieve the overall mission of the company (Strategic Planning, n, d). Target Corporation is one of the largest public retailing company in the US having more than 1700 stores serving guests nationwide. Target group and its brand position are evaluated in the market using SWOT analysis.--
Opportunities: Target has an opportunity to leverage its strength to overcome some of its weakness.

Target need to add more products to meet its customer demands reflecting modern trends. One of the opportunities is a high-tech and the weakness is supply chain automation. By including robust passive tags RFID technology which does not require power, it can improve inventory variability significantly. The automation, process improvement with human interaction promotes robust and low failure global supply chain a focused approach helps better customer experience which eventually gives an advantage over its competitors (Project Risk Management, n, d). Despite the recent data breach, Target should promote its own store card encouraging more discounts when money spent.--
Strengths: Target Corporation has pioneered towards customer focused supply chain and must continue providing customer whatever they want at any time. Target strategies must set the bar high in maintaining the standards and keep the items on the shelves all the times. The current supply chain is working well and it must improve a better system and reduced costs. Target stores look much clean and high-quality atmosphere that is compared to its rivals and it wants to provide a great shopping experience to its customers. The quality and clean store reflect the modern lifestyle that motivates a loyal customer to come back. Target developed an efficient technology that supports automated supply chain to replenish the shelves quickly and efficiently. In order to be a leader in the industry, it is necessary for Target to continues and improve quality and make items available in the shelves all the times. Target Brand is well known in the U.S and it has products and brand that are high in quality compare to some of its rivals (Project Risk Management, n, d). --
Weaknesses: The data breach occurred during 2013 is a concern for US consumer confidence and Target Corporation must address the concern with a process improvement and upgrade to its technology. To keep the top selling items stocked in shelves, Target needs more labor and come up with a strategy that will drive down the labor costs using process improvements and attract customer loyalty. Target need to improve its ability to forecast, it labor and total cost fluctuation and influence its market share (Project Risk Management, n, d). Target could consider expanding storing the top selling items at the nearest distribution center such that the products are handled few times and before they hit the shelves thus reducing labor cost compensating any low margin of the top selling products. Also, Target needs to implement space optimization, since space cost in the retail industry for storing and transporting, particularly low margin and high volume products. The store availability needs to improve depending on the location as well the operation procedures needs to be consistent so that the shelves are well stocked and the stores have enough inventory. --
Threats: The biggest threat to Target Corporation is its rival such as Walmart, BJ's, Costco and online retailers Amazon. Walmart having more bargaining power with supplier serves very significant threat to Target and offer much variety of the products than any other retailers. However, Target can use its technology to its advantage and automate the supply chain with low or no inventory which is one of the factors that will bring down price. Target should optimize its global supply chain that will allow keeping its price down as well stays ahead of its closest rival. BJ's and Costco's have the price advantage for selling products in bulk. The online retailers have no physical store and offer the saving to consumer (Project Risk Management, n, d). Target inventory turnover has room for improvement and it need to continue ahead of these retailers to sells it's all inventory. Target can work with its vendor to do a bulk packing and wholesale price and sell in bulk to customer offering more discount --
Value chain analysis --
In addition to the SWOT analysis, a value chain tool used to review the organization internal and external environment.

The tool essentially shows the chain of activities required to develop and deliver the products. The effectiveness of the organization vastly improves when all the key activities such as customer, vendor, suppliers and partner within the value chain working smoothly. The value chain used to reduce operational and production cost using low-cost producer strategy. If two service or products are delivery by two separate divisions for two different markets, there are functionality and process that can be integrated to save cost.

--
How well has the company performed to stated strategic objectives or performance targets? Support your assessment with factual data. --
Target Corporation strategic objective is making it as the preferred shopping destination in all channels by delivering outstanding value, continuous innovation and exceptional experiences (Bullseye View, 2015) and the strategic plan includes commitments for necessary resources, keeping the current industry demand, and a market competitive situation. According to Target Roadmap (2015), continue to grow digital channel sales by 40% and contribute 2 to 3% of the projected sales. --
Compare the strengths, weaknesses, opportunities, and threats of the company to those of its competitors. How do the vision and values affect how the company will respond to each? --
Strengths: Target brand is a well-recognized name and highly respected and customers have no resentment or hostility that its competitor Walmart faces. Brand loyalty with enjoyable shopping experience makes it as a fun place unlike its competitor Walmart. Target does a good job of marketing general household merchandise, fashion, and home furnishings. The presentation of Target is more appealing to young shoppers and presentation more aligned with modern trend attract shoppers from Walmart (Pestle Analysis, 2015) --
Opportunities: Target should continue adding top fashion products Lilly Pulitzer etc. appealing to all store and online customer. The middle-class customer bringing more traffic to Target given the fact, its largest rival Walmart is seen as a low-class retailer. The Omni-channel and same day in-store delivery for online shoppers with contactless payment option will increase Target sale volume. With more and more urban development, it is necessary that Target further enhances urban retailing. Current generation customers have more disposable income and prefer to shop at medium class retailer than low-class retail like Walmart.--
Target Weaknesses: Online retail store have increased their presence and Target is lacking in online sales and more shoppers prefer smaller neighborhood store as well placing an order from home. The large retail like Walmart, Amazon, and other larger big box retailer are expanding their presence, whereas Target has not made significant expansion in the last few years. Target Corporation data breach during 2013 holiday shows significant challenge with it technology and security set up. Lately, Target made an upgrade to its online, and in store pick up to overcome the weakness. Target is opening an express store in the metro market area for catering fast-paced urban life. It also increased spending for its technology to beef up security lapses.--
Threats: Growth of low price discount stores, big box stores with bulk items for low prices and the online retailers offer low price and convenient way of shopping at any time. Walmart is promoting heavy online promoting. Target is enhancing its experience with online, store and the combination to counter its rival's threat. Target is able to reduce it operation cost and pass on the savings to its customers with more streamlined supply chain and the operation excellence. Target is opening express stores to counter small store opened by many of its rivals and encourage young shoppers who prefer small store (Pestle Analysis, 2015).--
What is the core competency of the company?

How does this affect its standing within the industry?--
Target Corporation core competency are an outstanding value, continuous innovation, exceptional customer experience, design for all, diversity work and shopping environment, inclusion, great customer services and more for the money. Target core competency adds more values to its customers that it competitor cannot provide and sets a trend in the industry. The clean and recognizable atmosphere becomes an industry benchmark and consumer keeps coming to the clean and unique layout Target stores.--
How has the company used its value chain activities to improve its competitive position?
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. --
What are your recommendations in regard to the company’s competitive position and value chain

activities?--
Target Corporation needs to examine closely, the packaging, logistics and delivery the inventory associated with the common functionality can be integrated and reduced capital and other resources. By combining functional of many units where applicable, Target Corporation can save cost by a volume sale, bulk buying to get more discounts and internally charge each unit, operate efficiently with common activities and pass on the saving to the customer with lower prices or grow the organization. The reduction in cost is possible with the analysis of a value chain and the results in a cost producer strategy thus improving internal efficiencies (SNHU, 2015). The value chain activities are achieved through a superior technology, skilled workers, unique layout, brands that differentiate Target Corporation from its rivals.