Expect More, Pay LessPresented by:

Sharon Johnson, Marshelle Robertson, Tasha Tyson, and Charles Watson

B.E. Enterprise

History• Target was originally Dayton

Dry Goods Company• Dayton Dry Goods was

founded in 1902 by George Draper Dayton

• Dayton was a devout Presbyterian

• The company opened its first Target store in 1962

• Name changed to Target Corporation in year 2000

• Target Corporation (NYSE: TGT) is the countries second largest discount retailer, trailing only Wal-Mart. Target operates over 1,750 stores in 49 states.• Target has distinguished itself from its rivals by offering chic fashionable products at discount prices in an upscale environment. • Target has improved its stores with more space, expanded offerings, and a new design to makes its products and stores seem more upscale

External Environment

Competition• Main competitor is Wal-

Mart• Target scored an 82 in

customer satisfaction as compared to 71 for Wal-Mart stores

• Also competes with Costco Wholesale (COST), currently the largest membership warehouse retailer

Global Expansion• In January Target purchased

220 Zeller stores in Canada• Plans to covert 100 to 150

of these stores by 2013 or 2014

• Target has also considered opening stores in areas such as Mexico and Latin America in the next 3-5 years

Porters Five-ForcesIn order of significance

1. Threat of substitution

2. Competition3. Buyers bargaining power4. Suppliers bargaining power 5. Threat of new entries

Firm’s Strategies Business-Level Strategy

• More distinctive upscale fashion forward merchandise than rivals Wal-Mart and K-Mart.

• Target credit card, which is good only at Target.

Corporate Level Strategy

• Target Corporation has expanded it grocery offerings to enhance corporate strategy.

• The Minneapolis bases Target Corporation plan to remodel about four-hundred of its general merchandise stores across the nation to bulk up the grocery retail.

Tangible ResourcesPhysical Competency

• Expect More, Pay Less• Expect more of everything• More great design, more

choices and more designer-created items that you won't find anywhere else. And pay less. It's as simple as that

Human Competency

• Reading + Education• Volunteerism• Arts + Culture• Target House• American Red Cross• The Salvation Army

Financials• Net sales for a five week period ending on April 2,2011 were $5,

955 million

• Contributes to a 4.5 percent decrease as compared to a five

week period ending on April 3, 2010 in which net sales were $6,

233 million

• Target expected sales for a five week period ending on April 2,

2011 would closely approximate its first quarter results from

previous years

Intangible Resources

Reputation• Known as a “cheap chic” retailer• Highest customer satisfaction in the countryTechnology• Uses 15,000 virtual machines to run business critical workloads• Has virtualized inventory, point-of-sale, supply chain

management, asset protection, and in-store digital media• Innovation Resources• Target has given 5% of its income to the communities they serve• Has recycling stations in all of their stores for guests to take part

in waste reduction

Operations

• Target Corporation over 1700 US Retail Stores• 38 Regional Distribution Centers• 4 Distribution Centers• 4 Import Warehouses• 4 Fulfillment Centers (supports Target.com)• Additional Offices in 40+ countries

Services• Target Clinic• Target Pharmacy• Target Photo/Portrait• Target Optical • Starbucks Coffee• Target Café (Jamba Juice

and /or Pizza Hut Express

• Target Financial Services (TFS)

• Target Sourcing Services (TSS)

• Target Commercial Interiors

• Target Brands• Target.com

Competitive AdvantageTarget’s unique “Creative Cabinet”• An elite, secret team • 12 individuals of all ages, interests & nationalities• Selected on a rotating basis• Cabinet never meets• Individuals work independently• Meetings are called to discuss plans• Plans are identified; relationships are cultivated• Marketing executive serves as the integrator

SWOT