Target Corporation By: Monique Cuellar Anthony Ferrera Phung Truong Robert Dacanay Jenalee Vasquez.
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Transcript of Target Corporation By: Monique Cuellar Anthony Ferrera Phung Truong Robert Dacanay Jenalee Vasquez.
Target CorporationTarget Corporation
By:Monique CuellarAnthony FerreraPhung Truong
Robert DacanayJenalee Vasquez
Current Status of Company:
• 2003• Revenues = $48 Billion• Market Share = 17%
% of Revenues
• Target Stores 84%• Mervyn’s 9%• Marshall Field’s 6%
Company Locations:
• 1,313 Stores and 136 Super Target Stores in 47 States
• Number of Employees:328,000
• Headquarters: Minneapolis, MN
Suppliers:
Requirements for Suppliers:
1.1. Must have Electronic Data Interchange (EDI) Must have Electronic Data Interchange (EDI) capabilitiescapabilities
2.2. Financial StabilityFinancial Stability3.3. Ability to Serve Multiple CompaniesAbility to Serve Multiple Companies4.4. History of Successful ProjectsHistory of Successful Projects5.5. Understanding of Target’s Business PracticesUnderstanding of Target’s Business Practices6.6. Ability to Provide High Quality GoodsAbility to Provide High Quality Goods7.7. Compliance with OSHACompliance with OSHA8.8. Ethical Business ConductEthical Business Conduct
Customers:
• Median age = 45
• Avg. Annual Income = $57,000
• 90% of customers are female, of that, 39% have children
• 44% have college educations
Competitors
• Wal-Mart • K-Mart • JC Penny• Costco• Walgreens • Best Buy• Gottschalks
Indirect Competitors:E-BayUrban Outfitters
Williams-Sonoma MaySaks
Company’s use of IT/IS:
For Suppliers:
• Electronic Data Interchange (EDI)
• Partners Online Website
For Customers:
•Real-Time Customer Relationship Management System (CRM)
•Visa Smart Card
•Target.com
Threat of New Entrants
• More companies = more competition
• new entrants will compete for (marginal) market share
• E.g. Kohl’sKohl’s – recently opened stores in N. California & Bay Area
Power of Buyers
• Pressure buyers (consumers) place on a business
• Switching to another (competitive) product is simple
• Products is not important to consumer; can do without for a period of time
• Customers are price sensitive
Availability of Substitutes
• Existence of similar, competitive products & service
• Specialty stores compete with specific and superior products(i.e. Ikea, Pottery Barn, Bed Bath and Beyond)
• Catalog/On-Line shopping
Competitive Rivalry
• -Intense competition between existing firms in the industry
• -Similar products and services from competitors
• E.g. Wal-Mart, K-Mart, Walgreens, Kohl’s
Opportunities
• Positioning of Company• Reflecting a better image• Exclusive agreements with leading
companies
• Corporate Culture• Walt Disney training program• “fast, fun, and friendly”
Improvement with use of IT/IS
• Target.com• Purchase products• View Status• Store Locations• Weekly Ads
• E-coupons• Team up with Amazon.com