Careful review of the internal analysis and the most

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Careful review of the internal analysis and the most important strengths and weaknessesreveals that Target’s next strategic move should be to expand its grocery line as well as its globalpresence. Both of these should be considered with the general, industry and the external analysis.Expanding its grocery line and creating a global presence can have an impact demographically,economically, socioculturally, technologically, and physically. Considering demographics,choosing the best location and neighborhood for these stand-alone grocery stores is vital tosuccess. Urban, rural, heavily populated, and shopping malls all need to be considered.Economic considerations include inflation, recessions, and maximizing profit potential.Sociocultural desires and physical locations need to be considered to ensure a welcome receptionby the native population. Technology can have an important impact on the area as well. The more
FINAL STRATEGIC PLAN12urban areas will benefit from the online shopping experience. The industry operatingenvironment and the Five Forces of Competition need to be assessed before considering newterritories. When considering new locations, the forces of the potential buyers and suppliers willhave a major impact on success. Other forces include: new entrants or copycats, the threat ofsubstitute product, and the rivalry of competing firms (Hitt, 2015). Careful analysis of theexternal environment (opportunities and threats) as they relate to the internal environment(strengths and weaknesses) is critical in determining the success of the organization.The first step an organization must consider when entering a new geographic area orexpanding a current line of business is a competitor analysis. This will enable the company topredict and understand the local competition. In order to be successful, this first step is of utmostimportance. Target’s greatest rival is Wal-Mart. Wal-Mart already utilizes a strategic plan ofglobal penetration, with low prices and also a stand-alone grocery store, Neighborhood Market.Target also competes with Wal-Mart in terms of optometry and pharmacy options for its guests.Target still has a viable chance in these new markets despite its direct competition with Wal-Mart. Target has built its brand around exceptional guest service, innovation, and clean, neatstores. Both of these strengths are very much appreciated by the Target clientele. If they canpartner with local designers and/or celebrities, the transition into these new areas will beenhanced and greatly supported. The younger generation especially is more susceptible tocelebrity endorsements. Wal-Mart also has established the Neighborhood Market. By Targetentering into this opportunity, it has a good chance of being competitive. Wal-Mart has lowprices, but Target has low prices as well as brand recognition and superior quality. Target’squality is already superior in its brands (Archer Farms and Market Pantry) versus Wal-Mart’sGreat Value brand.
FINAL STRATEGIC PLAN13

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Term
Spring
Professor
alfonso
Tags
Str581 Week 6 Paper

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