Unformatted text preview: By Jacqueline Hassenstab & Mat Werner Facts Operates large format general merchandise and food discount stores Products range from everyday products to fashion merchandise Feb. 2007: TARGET OWNS 1,260 stores, leases 71, and has operated a combined amount of 157. Headquarters are located in Minneapolis Facts Cont'd Employs 352,000 people 13.1% increase in revenue since last year First store opened in Roseville, MN in 1962 Over 175 SuperTargets Has a location in Bangalore Strengths Strong Market Presence Strong Brand Image High-Margin Private Label Brands Introduced at lower costs to the customers Low-cost well-named brands such as Eddie Bauer, Mossimo, Numerous amount of known Brands Variety to the customers Increasing amount of sales High number of stores and remodeling of existing stores Able to reward investors because of increasing operating cash flows Strengths Cont'd Variety to the customers Increasing amount of sales High number of stores and remodeling of existing stores Able to reward investors because of increasing operating cash flows Target.com Provides an easy way to shop Gift registry options Strengths Cont'd Provides Financial Services Red Card Programs Credit Cards Check Cards Weaknesses Low control of quality of product because of numerous vendors Product Recalls Activity Cart Toys in 2007 Toys containing led paint in 2006 Lowers the loyalty and trust from the customer Weaknesses Cont'd Litigations TARGET was accused of racially biased hiring procedures 4 Black men were denied management positions and took TARGET to court in 2006 Received $775,000 in 2007 Weaknesses Cont'd US based Corporation TARGET is mainly based in the US and is only has one location outside of the US Hasn't gone global like Walmart, one of their highest competitors Makes TARGET vulnerable to poor market conditions in the US and uncompetitive to global retailers Opportunities Generics taking over Branded drugs are losing patents in 2010 Worth up to $70 million Cost about 20-80% less and are just as effective Opportunities Cont'd $4 Generic Drug Program Includes 1,287 pharmacies Expanding to nine states: California Connecticut Colorado Louisiana Minnesota Montana Pennsylvania Tennessee Wisconsin Opportunities Cont'd Expansion TARGET continuing to go global would increase markets and global competitiveness Opening another facility in North Bangalore Increase Number of Pharmacies Reach states that do not have TARGETS: Alaska, Hawaii, Vermont Opportunities Cont'd Private label buying of food, drinks, and personal care items is expected to increase to $137 billion by 2011 Photo Printing An expected 105.6 billion people will be using online photo printing Allows customers to share, print, design items, with their digital and phone camera photos Threats Price Competition Walmart and dollar stores have such low prices and are driving TARGETS profit margins down Increasing Competition Walmart operates 6,000 stores which benefits their sourcing and distribution of products Threats Cont'd Consolidation Many companies are taking over other companies Sears took over Kmart in 2005 Supervalu gained certain areas of Albertson's in 2006 Creates bigger entities which can cause higher price competition Decrease Market Share Sources Target.com Datamonitor USA News.medical.net USAtoday.com ...
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- Fall '07
- Kmart, Target Corporation, sales High number, Opportunities Cont