Strategic Analysis and Recommendations for Target Corporation

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The present memo reviews the strengths, weaknesses, and opportunities for Target Corporation to provide strategic recommendations. Target is a retail company currently represented in the United States, and its brand recognition and product range are its main strengths. Based on Porter’s Five Forces analysis, the retail market is most affected by consumer decisions and the wide variety of product substitutes. The Diamond of National Advantage is the United Kingdom which offers opportunities for growth without significant cultural or language barriers. As a learning organization, goals for expansion can help Target further improve its logistics, e-commerce, and customer experiences.

Target’s positioning separates it from competitors, as the brand is viewed as more high-class than other retail stores (Repko, 2022). The shops offer private-labeled products, which helps Target stand out and offer unique products, increasing the number of returning customers (Corporate Target, 2021). Furthermore, the company has many partnerships and a solid positive presence in media, which increases consumer loyalty (Repko, 2022). Some weaknesses include higher prices, absence of stores outside of North America, and lower quality of e-commerce (Repko, 2022). Target can overcome these issues by developing the e-commerce sector, expanding to other regions, and offering customer feedback and information-gathering programs.

The retail market has many strong competitors, making the threat of new entrants extremely low. Buyers have substantial power over stores, as their dissatisfaction may result in them completely avoiding one brand and choosing another. In contrast, the abundance of suppliers makes it easy for retail stores to find new partnerships in the case of disagreements or issues. However, many suppliers do not have exclusive partnerships with one retail chain, which increases their power. Moreover, this fact leads to the great influence of substitutes on the market – many products are similar, and online shopping simplifies access to various products (Thomas, 2022). Finally, the market is highly competitive, with a limited number of potential complementors.

Target is currently represented only in one country – the United States. While some other nations, such as Canada, may be closer to the current location geographically, the analysis reveals the United Kingdom as the best potential destination for expansion. The UK has a substantial retail market and strong competitors, including large chains and small individual stores (Taylor & Warren, 2022). However, with the growth of online shopping, consumers may benefit from Target’s highly developed logistics and unique products. At the same time, the UK offers benefits to Target, including a growing interest in e-commerce, VAT exemptions, lower taxes, the absence of a language barrier, and a large labor force (Taylor & Warren, 2022). Some problems may include Brexit’s economic and political effects, cultural differences, and increased financial control.

Target is a learning organization that has changed significantly throughout the years. A notable expansion of its e-commerce services happened during the COVID-19 pandemic when online shopping became the primary choice for many consumers (Chopra, 2022). Target adopted several delivery and pick-up methods, developed applications and websites to support the growing interest in e-commerce, and adjusted its logistics. Its talent force seems to focus on research and development, while the wide product range suggests high creativity (Chopra, 2022). Overall, Target has a robust presence in the US market.

The recommendations for Target are based on its strong and weak points and the changing market. The opportunity for growth lies in improving its e-commerce to meet the continuously growing demand for faster and more convenient online shopping. Target should expand to the UK, allowing it to start building its international chain and incentivizing the company to innovate its logistics further. These activities can also help Target become a better learning organization. While Target’s research and innovation are making it a strong competitor, it remains bound to one region, which limits its capabilities for economic growth and brand recognition.