Target Swot Analysis

In: Business and Management

Submitted By leonb
Words 904
Pages 4
Target Corporation (Target or "the company") is among the top two discount chains in the US. The company is a large retailer with established presence in the US and enjoys a strong brand value which enables quick penetration and a large and loyal customer base. However, the macro economic conditions are adversely affecting the consumer confidence and in turn depressing the discretionary spending, which will impact the top line growth for Target adversely as it is highly dependent on the discretionary spending of the customers.
Strengths
Large retailer with established presence and robust brand strength
Target is one of the largest retailers in the US. The company was ranked 19th in the America's most admired companies list compiled by fortune magazine for 2009. According to a survey, Target was ranked 2nd most valuable brands in the US after Wal-Mart. In 2009, the company concentrated in building its brand despite price cuts and has invested in the same. Its brand value grew by 50% compared to Wal-Mart's brand value which grew at 20%. In the 2009 rankings Target with this investment in brands has leaped ahead of Best Buy and Home Depot to attain the number two spot. It is ranked 30th in the list of Fortune 500 companies. The company operated 1,740 stores in 49 states in the US and the District of Columbia, and 38 distribution centers to support its operations. By virtue of its strong brand value, Target has a loyal and satisfied shopper base and it can further harness its brand potential to attract more customers. A strong market position enhances Target's market penetration and adds to its bargaining power.
Additionally, the reputation it enjoys will enable it to effectively market its strong private label portfolio. Private label products enjoy higher margins than the national brands. Target enjoys a strong brand positioning which will facilitate higher and…...

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