Competitive Sustainable Advantage (SCA) and Major Problems for Target
Target has a few sustainable competitive advantages including their logo and brand, the
experience they offer to customers, and operating their business ethically and with integrity.
These things differentiate them from their competitors and allow them to gain wins within their
industry, and also make it possible for them to fulfill their mission statement to make Target the
preferred shopping destination for [their] guests
96% of people who recognize Targets Bullseye exceed the number of people who
recognize Apples apple and Nikes swoosh. Holding a well-known logo allows Target to hold an
advantage over its other competitors because of the prestige within the United States. With their
logo, one can immediately correlate it with their slogan of Expect More, Pay Less in which
they promise brand products for outstanding value at a very affordable, inexpensive amount as
compared to competitors. While Wal-Mart reigns in the low cost strategy, Target remains close
behind them and is their fiercest competitor. Their slogan differentiates them through better
service and perceived high quality.
With their slogan, Target also tries to exemplify that they offer a great shopping
experience, better service, and support to their customers. Their stores are created to be easy and
intuitive to shop, with related departments conveniently placed next to each other. Also, the
stores are very clean and are designed to keep the safety of customers high in order to exceed
customers expectations so they enjoy their experience and want to come back. Team members
are always ready to assist customers with questions they may have or helping them search for a
particular item and checking them out in a fast pace.
In 2010, Target was recognized by Ethisphere Institute as one the Worlds Most Ethical
Companies. According to an interview, Targets Tim Baer, who is the executive vice president,
general counsel and corporate secretary said We expect every one of our 350,000 team members
to demonstrate sound, ethical business practices that bring good judgment and integrity to every
business decision. With ethical consumerism growing in todays world, this commitment is the
foundation of Targets unique culture which strengthens its competitive advantage and supports
the superior experience guests major expect.
Some problems Target is going to incur in pursuing the City Target idea is knowing
which departments to cut, and in which cities to cut them. With square footage only being 4060% of what it normally is, Target knows that it will not be able to keep all of its current
departments. Sporting goods, outdoor living, and some aspects of furniture might have to be
scaled down or completely eliminated in order to accomplish Targets goals. Not only will
departments have to be scaled down or cut, the size of packaging on products will also have to be
adjusted for the move to bigger cities.
In the average Target, most customers would purchase big bottles of health care products,
large quantities of toiletries and stock sized cleaning products. However, in cities such as Los
Angeles, Chicago, and Seattle most people are traveling via subway, bus or taxi. These methods
of transportation dont allow for the bulk items that most customers would typically purchase,
therefore influencing Target to trim back their package sizes to accommodate their new clientele.
Targets motto of Expect More, Pay Less would have a whole new meaning in large cities
across the country.
Target stores are known for being clean, easy to navigate, and customer friendly. These
characteristics will be harder to come by in big cities, the smaller square footage might mean that
things are set a lot closer together which might make them harder to find. Large cities arent
typically known for being clean, so trying to make a Target store as clean as what their standards
usually are could pose a problem. Target executives would need to make sure that they hire top
notch employees that have the same values and enthusiasm to help customer as the current larger
stores do.
Using new ways of advertisement could be a huge challenge not only for marketing
purposes but also financially. The use of billboards, sides of buses, subway stations, and
elevators might be the future for City Targets advertising team. These traditional ways, combined
with new and innovative ways of marketing could potentially be a huge financial burden if
Target under estimates the cost it will incur to accomplish their goals. While none of these tasks
are impossible they all pose different challenges that Target will have to overcome if they hope to
be successful in this new City Target idea.