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Complete the Porter’s Five Forces Worksheet, based on the company you have been working with since Wk 1.Topic is Target store. I have attached a power point that might help. The Porters Five Force work sheet is what needs to be completed and is attached as well.
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Target Corporation
Student’s Name
Institution Affiliation
Class
Date
Agenda
Description of the Organization
• Strengths of the Organization
• Weaknesses of the Organization
Key Aspects of External Environment for Value Creation:
Evaluation of Opportunities to Add Economic Value:
Evaluation of Opportunities to Add Social Value
Evaluation of Opportunities to Add Environmental Value
Recommended Opportunity
conclusion
Description of the Organization
• The Target Corporation is a well-known American retailer that has been around since
1902.
• Its stores sell everything from clothes and gadgets to furniture and food.
• Their brand items, which have been the cornerstone of their company model, have
played a vital part in their success.
• According to Target Corporation (2023a), private-label products generated over 28% of
the company’s total sales in 2022.
• Target has also strategically partnered with well-known companies, such as Apple,
Disney, Levi Strauss, Starbucks, and Ulta Beauty, complementing their already
formidable private brand presence. T
• Through these partnerships, Target can provide its partners with a more prominent
presence in Target shops, which benefits both parties.
Strengths of the Organization
• One of the greatest strengths is the booming private label items.
• These items not only boost profits but also foster client loyalty and expand the
company’s customer base, which ultimately strengthens the company’s business model
and increases revenue.
• Target’s strategic partnerships with well-known brands are another source of strength,
helping to set the company apart as a purveyor of superior goods compared to
discounters like Walmart and Costco (Target Corporation, 2023d).
• These strategic collaborations draw in shoppers looking for high-quality goods by setting
up shop within Target shops.
• Target’s dedication to quality is shown in the company’s focus on product excellence,
which helps it stand out from rivals that put more of an emphasis on low costs.
Weaknesses of the Organization
• To begin, the firm has never matched the online sales success of industry titans like
Walmart.
• In light of the ever-increasing importance of online shopping, this discrepancy is cause
for serious worry.
•
Compared to industry leaders like Amazon and Walmart, who provide the convenience
of same-day delivery, Target’s online order delivery timeframes fall short.
• Such a problem hampers the target in the fiercely competitive e-commerce market,
where customers place a premium on prompt order fulfillment (Target Corporation,
2023b).
• Finally, compared to retail giants like Walmart, Target lacks the size and sales volume to
use economies of scale and purchasing power effectively.
Key Aspects of External Environment for Value Creation
• One significant opportunity for Target’s expansion is the rising popularity of online
shopping, which the COVID-19 epidemic has helped to hasten.
• Because consumers’ love of online shopping is only projected to grow, the organization
must prioritize developing its online sales capability (Meisenzahl, 2023).
•
Second, Target can meet shoppers’ unfulfilled demands by specializing in affordable,
high-quality goods.
• Target is in an excellent position to address the growing demand for high-quality items
that improve people’s lives because of the company’s longstanding commitment to
quality.
• In addition, Target’s partnerships with other well-known companies like Apple and
Disney are assets that may be used to boost consumer happiness and loyalty.
Key Aspects of External Environment for Value Creation
• Target’s online retail skills may benefit significantly from the company’s decision to
partner with local businesses specializing in “the last mile” of product delivery.
• To better compete with market giants like Amazon and Walmart in online sales, this
project can improve the company’s delivery times, one of its main disadvantages.
• Target Corporation (2023c) notes that the capacity to provide fast and reliable delivery
services may be a game-changer for e-commerce businesses.
• The fact that Target has achieved great success with its private-label products proves that
the corporation has what it takes to create other successful product lines.
• Target can reach more shoppers and increase its market share by investing in category
expansion and innovation.
• Target can maintain its position as a frontrunner in the dynamic retail sector.
Evaluation of Opportunities to Add Economic Value
• Target needs to put a premium on improving its online sales performance to provide
economic value.
• Competition from the likes of Amazon and Walmart has been hurting Target’s online
sales as of late.
• As a result, it is essential to revamp the infrastructure supporting online commerce
completely.
• Target may get an advantage in the e-commerce market by partnering with firms
specializing in last-mile delivery to drastically cut delivery times (Target Corporation,
2023b).
• Further, it can create economic value by expanding the production of its private brand
items.
• Private brands are a strategic asset for Target because of their proven profitability
Evaluation of Opportunities to Add Social Value
• Target’s mission to offer high-quality items at accessible costs not only caters to
customers but also adds considerably to societal value.
• As long as they keep this promise, customers from all walks of life will have access to
high-quality goods that improve their lives and the economy.
• The culture of excellence reinforces the target’s contributions to society and fosters trust
through its relationships with well-known, trusted brands.
• Target can do even more to help the world by partnering with local last-mile delivery
businesses to increase their social effect.
• The organization shows it cares about the communities it serves by actively seeking out
opportunities for collaboration (Target Corporation, 2023a).
• Such a method improves the lives of locals by bolstering the economy and promoting
community and collaboration.
Evaluation of Opportunities to Add Environmental Value
• Target is well-positioned to make a substantial contribution to environmental value
creation. Improving its distribution system is a crucial step in this direction.
•
Target can increase consumer happiness and its positive impact on the environment by
drastically reducing the time it takes to deliver orders.
• In line with current initiatives to address climate change, this decrease in transportationrelated emissions supports a greener and more sustainable future.
• Environmentally friendly shipping and packing alternatives are also available to Target.
• The company’s carbon footprint may be reduced even further through energy-efficient
delivery techniques and environmentally friendly packaging.
• The corporation can do much more to help the environment by adopting green policies
across its supply chain.
Recommended Opportunity
• The most promising channel for Target’s entrepreneurs to create value is through the
company’s online sales distribution system.
• The company’s strengths, such as its partnerships with well-known brands and its
dedication to excellence, are reflected in this suggestion.
• In addition, it efficiently deals with its primary vulnerability, namely, its lackluster
internet sales.
• Target may better compete in the online retail sector, where speed of delivery is
becoming increasingly important, by forming strategic alliances with local last-mile
delivery businesses (Meisenzahl, 2023).
• In addition, the strategy takes advantage of the rising popularity of purchasing online, a
trend that will likely continue.
Conclusion
• In conclusion, Target Corporation has distinguished itself from large competitors like
Walmart and Costco by portraying itself as a distributor of better quality items at cheap
costs.
• Such a one-of-a-kind method has done more than win over customers; it has also helped
the business grow and flourish
• Target, however, confronts a significant obstacle in its online sales performance, which
has lagged below that of rivals.
• Target needs to improve its online sales delivery system extensively to capitalize on the
significant opportunities in the external environment and strengthen its value offer.
• The company gains economically from increased online sales, socially from a better
match with its aim to improve the quality of everyday life, and environmentally from a
decrease in the carbon emissions caused by delivering its products.
References
•
•
•
•
•
Meisenzahl, M. (2023, August 22). Walmart’s online sales exploded while Target’s
slowed again. Digital Commerce 360.
https://www.digitalcommerce360.com/2023/08/22/walmart-target-online-sales-q2analysis/
Target Corporation. (2023a). 2022 Annual Report. Corporate.target.com.
https://corporate.target.com/investors/annual/2022-annual-report
Target Corporation. (2023b). Expanding Next-Day Delivery Capabilities, Bringing
Speedier Delivery to Even More Guests. Corporate.target.com.
https://corporate.target.com/news-features/article/2023/02/we-re-expanding-next-daydelivery-capabilities,-bringing-speedier-delivery-to-even-more-guests
Target Corporation. (2023c). Our Corporate Strategy. Corporate.target.com.
https://corporate.target.com/about/purpose-history/our-corporate-strategy
Target Corporation. (2023d). Target’s purpose and history. Corporate.target.com.
https://corporate.target.com/about/purpose-history
MGT/576 v1
Porter’s Five Forces
Complete the table below. For the company you’ve decided to assess in week 1, determine the strength
of each of Porter’s Five Forces and of the complementors.
Justify your determination with examples.
Strength
Industry force
High
Example
Medium
x
Low
Provide a justifying your determination
with examples
This is why I believe it is medium.
Threat of new entrants
Power of buyers
Power of suppliers
Power of substitutes
Rivalry among competitors
Complementors
References:
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