My Life
The type of retailer I consider Target to be is a full-line discount store. They are a full-line discount store because of the broad variety of merchandise they offer along with their lower prices and limited service. Target stores offer fashionable merchandise at low prices while at the same time creating that pleasant shopping environment. This has greatly helped target become successful as far as growing sales and profits.
Target’s primary competitors are Wal-Mart and Kmart. These are two of Target’s top competitors because they both have deep low retail prices, such as Wal-Marts everyday low pricing strategy, along with offering the wide variety of merchandise including grocery items, apparel, electronics, home goods etc. Targets secondary competitors are all of the other discount variety stores such as Costco, Family Dollar and such stores in the same industry.
The major issue in the beginning of Target’s store growth was their rapid expansion. In the early 1970’s they had expanded to 46 stores in 9 states but the rapid expansion lead to a bunch of problems and loss of profits for the company. They began trying to expand across the country but what ended up happening was that individual managers began taking over and each running their stores however they wanted. This could possibly be an issue but the possibility is very low. The Target stores have a set plan and strategy that is consistent throughout all of their stores nation-wide. For example, when customers go into a Target store while on vacation they expect it to be very similar if not the same as the Target in their home town.
The current obstacles Target is facing is entering the Canadian market. They were first faced with a weak Canadian dollar, higher costs, and limited real estate development. The door to Canada is slowing opening wider but there still are obstacles ahead. Because of the smaller population of Canada costs tend to be higher. Canadians are familiar with many American retailers and their prices, one thing they don’t want is to be overcharged on their home turf. Ms. Gibson of Target said “the goal is to largely mimic American stores, with some small changes”. Target has plans for opening 125 stores in 2013.
Target’s current position as a retailer is in line with what the original idea behind Target was. When Robert Ulrich became CEO of Target he truly continued what Target is all about and was a key player in growing and making Target a top competitor. Current CEO Gregg W. Steinhafel has kept Target thriving. He has brought it to the next level while still keeping with the original idea and principles of the organization which is quality items and fashionable merchandise but at discount prices along with being able to have a pleasant experience while shopping.
The types of Corporate Social Responsibility that Target pursues is one, by still staying true to what the founder started and that is giving back 5%