#_Wal Mart vs Target

#_Wal Mart vs Target - Wal-Mart Vs. Target (Business...

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Wal-Mart Vs. Target (Business Strategy Class)
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Wal-Mart Vs. Target I. (a) Economic globalization is an important aspect of modern world system. It is one of the most influential forces determining the future global development. The basic sphere of globalization is the international economic system, i.e. global manufacture, national economies and the world market. Wal Mart and Target Corporation are two US- based giant discount retailers operating around the world. The existence of such types of stores on the market becomes urgent. This phenomenon can be easily explained by the lowering standards of living and economic slowdowns. None of the discount retailers is more popular than Wal- Mart and Target. The mission of the research is to analyze and compare Wal Mart and Target market position, identify the strategies the companies employed in their marketing which have lead to success. The research will be based on SWOT analysis, Porter’s 5 Forces analysis and 5 Generic Strategies. Also, a special attention will be given to recent trends and key success factors, code of ethics employed by each company and their social responsibility. The most general characteristic that Wal Mart and Target Corporation have in common is the emphasis on low prices. The mission of both companies is similar: to market lo a wide range of merchandise, including non-food items and nonperishable food, in a limited-service format. Wal-Mart is the leader of the full-line discounters, with many stores covering 120,000 square feet (or more) of floor space; food accounts for about a third of floor space and sales. Wal-Mart was found in 1962 in Rogers, Arkansas (Wal-Mart, 2005). Its founder, Sam Walton opend the first distribution center in 1970, which was a starting point for further expansion, and in two years it was included in the list on the New York Stock Exchange. During the next decade Wal-Mart acquired a number of stores including 16 Mohr-Value stores and Hutcheson Shoe Company. It opened new divisions such as jewelry, one-hour photo lab, pharmacy, auto service, and reached its first billion dollar sales in 1979 (about $1,248,000,000). Wal- 2
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Wal-Mart Vs. Target Mart's first foray outside the United States was in Mexico in 1991. Market entry in Europe came in 1997 with the purchase of 21 hypermarkets from Wertkauf GmbH. The following year Wal-Mart acquired 74 additional hypermarkets from Spar Handels AG. Annual charitable contributions were about $100 million in 1998. Today, Wal-Mart is the biggest private employer in the world withh 1,140,000 staff (Wal-Mart, Wikipedia, 2005). The recent starategy is to expand to urban markets. Target Corporation is a “large-store general merchandise company which has 1,450 stores in 47 states” (Target Corporation, Hoovers, 2005). Target Corporation includes discount stores, moderate-priced promotional and traditional department stores, as well as a direct mail and on-line business. Wal-Mart’s direct competitor was founded in 1902 by
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This note was uploaded on 03/02/2011 for the course BUS 500 taught by Professor Dr.spitz during the Spring '11 term at Deep Springs.

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#_Wal Mart vs Target - Wal-Mart Vs. Target (Business...

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