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Target corporation market strategies
Target corporation market analysis
Target corporation business strategy
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Target Corporation is one of the largest discounted retail stores. Target offers everyday essentials, attires, food amongst other differentiated merchandise at everyday low prices. In addition, it offers in-store amenities, including Target Café, Target Photo, Target Optical, Portrait Studio, Starbucks, and other food service offerings. In 1902 Target (TGT) was founded and incorporated in Minneapolis, Minnesota. The scope of this analysis is to determine Target's stock valuation by evaluating TGT's technical analysis and multiples. The technical analysis will describe the price trend and patterns. In doing so, six common indicators: Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), Aroon, Money Flow Index (MFI), …show more content…
On Balance Volume (OBV) and Full Stochastics Oscillator (FSO) are used to confirm the price trend by comparing it to TGT's candlestick price chart. The multiples P/E and PEG ratio along with Enterprise value will be analyzed as well. Paired with the technical analysis, the multiples findings will be evaluated against the current share price as a determination to whether TGT stock is over-or undervalued. Analysis Target's price trend is easily discernible as a sideways/horizontal trend as there is no straightforward and steady direction of up or down.
The prices show a repetition of up and down throughout the years. At other times the price did not fluctuate and remained flat, for instance November – December 2015 and September – late October 2016. The Simple Moving Average (SMA) 20,50, 200 were used to compare the different terms to indicate the shifts and reversals for short term prices. Simple Moving Average (200) was an uptrend from the 2015 to 2018 and crossed above both SMA (20) and SMA (50) in April and June 2017. SMA (20) and SMA (50) also show a sideways trend. SMA (20) and SMA (50) crossover a few times. SMA (20) cross below SMA (50) indicating a price drop for short term prices in Nov 2015. Then SMA (20) crosses above SMA (50) mid- May 2016 another crossover below in September 2016 and a major dip in March 2017. Lastly, SMA (20) followed the uptrend and crossed above SMA (50) in November 2017. Short term prices are expected to increase and fall as it closely follows the wave of the price chart. The technical indicators and identified pattern are used to confirm the price trend base and forecasted prices along with bullish and bearish
momentums. Technical Indicators The six indicators reviewed will be analyzed to confirm or conflict the price trend. Relative Strength Index Relative Strength Index correlates with the chart showing a peak In March to April 2015 of bullish control, reaching above 70. A year later around the same time period, there was a reversal of control, shifting to bearish control indicating oversold reading as RSI was slightly below 30. At the end of 2017 leading into January, RSI confirms the price charts trend reversal from downtrend to uptrend and ending off with bullish momentum at a 77.63 RSI. RSI technical indicator is used to compare the speed and change in price movement along with demonstrate how strong a stock is moving in its current direction (RSI, 2018).
Target business is based on big box centers and supercenters, which are not preferred by many shopper who normally like shopping in small convenience store within the neighborhood.
Target has many competitors in the market, and the level of competition is highly intense. Some of its main rivals are Wal-Mart stores, Home Depot and Costco Wholesale Corp. All of them produce similar products as well as offer almost the same services to their consumers. Naturally, the organization would need a strategy that helps it to stand out and to distinguish it from its competitors, thus, Target 's positioning was based on more than just pricing; it combined quality and style. This was the differentiation strategy that have always been applied since the launch of the organization.
For the most part, Target Corporation’s performance is positive and has been consistently growing in sales. The company has increased its stock value through additional sales resulting from a deliberate
Target stores, inc.is a sister company of Dayton Hudson Corporation and started in the year 1962 the same year as two other large retail stores Wal-mart and Kmart. Target has always operated with the motto “ Expect More and Pay Less” target is the third in the big three in U.S. falling behind Wal-Mart and Kmart.a major part of target's success comes from its ability to bundle bargain prices with fashionable name brand merchandise with excellent customer service. Dayton’s department store started looking into Target as a discount chain in the year of 1962 when the company saw a rising in public demand for lower priced merchandise in a family friendly and convenient environment. The name target along with the bulls eye logo were selected for the company's visual impact also to show that target aims at offering
Target, the nation's #2 discount chain, now operates more than 1,500 Target and Super Target stores in 47 states, as well as an online business called Target.com. Target and its larger grocery-carrying stores, Super Target, have carved out a niche by offering more upscale, fashion-forward merchandise than rivals Wal-Mart and Kmart. After years of struggling to turn around its Marshall Fields and Mervyns departments stores divisions, the discounter sold them both in 2004. Target also owns apparel supplier The Associated Merchandising Corp. and issues Target Visa and its proprietary Target Card (www.Answers.com/topic/target-corporation).
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.
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. --
The year 2013 was not one marked for pride for the retail chain, Target. They had one of the largest data breaches known to date that occurred between November 27th and December 15th. Not only was this the one of the largest attacks known to date of this kind, it was also quite eye opening to many who may not have paid any attention to the world of information security. The Target hack resulted in 40 million compromised credit and debit card accounts and that was just the initial known result. After some time, the research revealed that a total of as many as 110 million Target customers were the victims of this gigantic hack. Although computer crimes occur within the United States often, the bigger problem is that criminals from other countries across the oceans are attacking as well.
Target Corporation has indicated a significant increase in the number of years it has been operational. The company experienced important changes in growth when it transformed from a regional store to a national retailer.
The second method we used to analyze the firm’s value was the Comparable Companies Method. We used the historical figures as of 1990 and Goldmans Sach’s Projections. With an average of 22.
Target bank is called the Target National Bank. It is owned by the Target Corporations itself and all the receivables go into Target has approximately 1,600 million dollars worth of lines of credits from twenty five different banks, approximately half the worth of the line is used and is due back for payment June 2005, with an extension all the way up to June 2006. The other half of the payment is due June 2008. The expected long term rate of securities rate for October 31 2004 was 8.5 %.
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
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.
For companies, firms and businesses to exist, there must be available market where they can satisfy the available demand. This matches the objective of many businesses which is to make profit and by satisfying the market demand they achieves it. Many markets have different firms striving to achieve similar objectives making it very competitive for each firm. Both start up and existing businesses looking to join a particular market must research and identify an attractive market. According to Best (2013), market attractiveness can be measured based on market forces, competitive intensity and market access. In other words, market attractiveness is very important because they determine how easy or difficult businesses can achieve their goals and objectives.