Jeaneen Pitts

Target SWOT Analysis and Porter’s Five

December 3, 2011

The purpose of this paper is to discuss Target’s strengths, weaknesses, opportunities and threats. This paper will also talk about how Porter’s Five affects Target’s business decisions.

Target’s mission statement: “Our mission is to make Target your preferred shopping destination in all channels by delivering outstanding value, continuous innovation and exceptional guest experiences by consistently fulfilling our Expect More. Pay Less brand promise.” (target.com)

Strengths:

One of Target’s strengths is that it’s one of the largest retail outlets. Target is a one stop shop for its consumers. Target also focuses more on product quality and still tries to offer low prices. Target compares prices on over 25,000 items to make sure that they are offering their customers the best price. Target also accepts manufacturer’s coupons making them even more competitive. Target prides itself for focusing on supplier diversity. Target has developed relationships with minority and women owned vendor and suppliers. Target is focused on becoming the industry leader in supplier diversity. (target.com)

Weaknesses:

Target unfortunately has no international presence; all of their 1,763 stores are located in the U.S. Target’s focus on quality products more so than low prices is also considered a threat. Consumers may tend to shop at Wal-Mart or Dollar Stores due to the economy and the perception that they are much cheaper. Another threat is that it does not have as many stores as its competitor Wal-Mart. (target.com)

Opportunities:

Target plans on opening stores in Canada in 2013. Target has purchased the leases Zeller’s. Target will operate about 150 stores in Canada between 2013 and 2014. (target.com)

Target