Revenue and Loyalty Programs
Target corporation is a US-based company headquartered in Minneapolis, United States. The company consists of the largest retail store chain in the United States and has its presence across 12 countries globally. The specialization of the company, in general, is merchandising across all the 50 states of the United States and has earned a revenue of more than 93.6 billion dollars in the year 2020. The main objective of the report is to analyse the SWOT of the company in the US market and in order to conduct this analysis the internal factors and external factors of the company will be thoroughly researched.( Target, 2022).
- The first strength of the company is providing offers and discounts to the customer at a high level in order to gain market penetration. The promotion of the company is giving these benefits to the customers in all departments has helped the organization to gain a large customer base in the United States. ( Sarsby, 2016).
- The second main strong points of the company are the partnership policy. The main intention of the company behind the partnership policy is to attract new customers through building a good relationship with other companies and generating revenues by bringing efficiency in the performance of the organization.
- The third main strength of the company is providing diversification of products in different price ranges and also providing the customers with company-labelled products. The company labelled products mix with variety under one roof has helped customers in purchasing all the customers at one place without going outside to the competitors. ( Capell, 2019).
- The first weakness of the company is producing advanced technology and maintaining new technologies for future use. As technology is advancing at a very fast pace the e-commerce sector is also expanding and new technologies are being adopted by companies to survive in the market. Target corporation is investing a huge amount of money in the technology and development sector but still lacking behind its competitors. ( Wamba et al, 2017).
- The second weakness of the company is data security. The company is providing credit facilities to its customers and maintaining that data secured is becoming a huge challenge for the company producing complexities. ( Manworren, Letwat and Daily, 2016).
- The third weakness of the company is the lack of global reach. Many e-commerce platforms are earning revenues through their strategies in different nations but the target corporation has the biggest retail chain in the USA but the not so effective in other countries and this is prohibiting the company from extending its reach to different parts of the globe.
- The first opportunity of Target Corporation is to extend its delivery system to new modern technologies like its competitors Amazon and Walmart. The company delivery system is not so advanced and should new strategic implementations of faster delivery through proper logistic solutions.
- The second opportunity for the company is enhancing its products in a sustainable and eco-friendly department. An increase in environmental issues has already become a deciding factor for the organization for maintaining sustainability through selling eco-friendly products and services. ( Andreoli, 2018).
- Target corporation should consider expanding its business to different regions targeting urban and suburban societies in order to expand its sales through expansion of business.
- As a trendy retailer Target Corporation should start considering new trends and fashions in quick time as other companies are changing their marketing strategies by applying trends in their products segments. It is very much necessary to identify the taste and preferences of the customer. ( Boons et al., 2013).
- Target corporation has to face strong competition from competitors due to pandemics as people are mostly onto online purchase and boost in e-commerce sectors has helped other competitors like Costco and Walmart to generate more revenues and profitability.
- Expansion in the US is very much necessary in the long run. As there are still many states in the country that target has no retail stores and is providing only online business making it difficult for the company in generating revenues from other regions of the US.
Target Corporation has adopted various loyalty programs which provide offers and discounts to the customer making the price of the product affordable and value for money. The company has a partnership with Starbucks and each retail store of Target has included Starbucks store inside so that customers can hang out with friends and families and spend a good time. Target has earned a revenue of 93.5 billion US dollars from North America by selling its company labelled branded products. ( Statista, 2022).
Target Corporation has been involved in high-profile data breaches in the past few years where customers have complained of data leaking by the corporation. The company has a heavy presence in the United States but in other countries, the company has a negligible presence. Target competitors are adopting technology at a fast pace in the global market and the company has to invest more money in research and development.
Target corporation should make new improvements in its delivery system as the company has recently adopted a one-day delivery module. Target corporation mobile app Cartwheel has 27 million shoppers and should look for regional expansion to different nations as the company already has 350000 employees and the stock price of the company has grown 322% from 2016 to 2021. Target’s website has 136 million users registered from search traffic.
Target Corporation has closed more than 130 stores in the United States therefore expansion of more retail chains in the US is necessary. The company has generated revenues of 78.1 billion dollars globally far less than its competitors like Amazon and Walmart. Target faces stiff completion from retailers’ shops and the company can fall victim to fickle consumer trends.( Grubbs, Brice and Jennings, 2012).
- Target Corporation should invest money in logistics and departments for providing faster delivery systems. The company should invest money in marketing strategies in other countries for better market penetration.
- Target corporations should perform big data analytics firms in protecting the consumers’ data. Constant monitoring of credit facilities of each consumer is required to protect customers from data violation
- Target corporations should start targeting other sections of people rather than focusing on suburban and young customers, instead, the company should target the mass market by providing a valuable quality product at a reasonable cost.
- For attracting more customers, the company should focus on the promotion of products through sustainable marketing. The company should constantly be aware its customers about the eco-friendly products and initiatives the company has adopted to win the trust of the customers, this will help increase brand loyalty and customer retention.
References
Andreoli, B., 2018. Strategic Analysis of Target Corporation.
Boons, F., Montalvo, C., Quist, J. and Wagner, M., 2013. Sustainable innovation, business models and economic performance: an overview. Journal of cleaner production, 45, pp.1-8.
Capell, A., 2019. Strategic Audit: Target Corporation.
Grubbs, J.K., Brice, B.R. and Jennings, S.E., 2012. Americans with disabilities act and e-commerce: target corporation and beyond. Southern Law Journal, 22(1), p.89.
Manworren, N., Letwat, J. and Daily, O., 2016. Why you should care about the Target data breach. Business Horizons, 59(3), pp.257-266.
Sarsby, A., 2016. SWOT analysis. Lulu. com.
Statista, 2022. Net earnings of Target in North America 2020 | Statista. [online] Statista. Available at:
<https://www.statista.com/statistics/256008/net-earnings-of-target-in-north-america/> [Accessed 30 January 2022].
Target, 2022. annual reports | Target Corporation. [online] Target Corporation. Available at: <https://investors.target.com/annual-reports> [Accessed 30 January 2022].
Wamba, S.F., Gunasekaran, A., Akter, S., Ren, S.J.F., Dubey, R. and Childe, S.J., 2017. Big data analytics and firm performance: Effects of dynamic capabilities. Journal of Business Research, 70, pp.356-365.
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