Expect More, Pay Less<br />Presented by: <br />Sharon Johnson, Marshelle Robertson, Tasha Tyson, and Charles Watson<br />B.E. Enterprise<br />
History<br />Target was originally Dayton Dry Goods Company<br />Dayton Dry Goods was founded in 1902 by George Draper Dayton<br />Dayton was a devout Presbyterian<br />The company opened its first Target store in 1962<br />Name changed to Target Corporation in year 2000<br />
<ul><li> Target Corporation (NYSE: TGT) is the countries second largest discount retailer, trailing only Wal-Mart. Target operates over 1,750 stores in 49 states.
Target has distinguished itself from its rivals by offering chic fashionable products at discount prices in an upscale environment.
Target has improved its stores with more space, expanded offerings, and a new design to makes its products and stores seem more upscale</li></li></ul><li>External Environment<br />Competition<br />Main competitor is Wal-Mart<br />Target scored an 82 in customer satisfaction as compared to 71 for Wal-Mart stores<br />Also competes with Costco Wholesale (COST), currently the largest membership warehouse retailer<br />Global Expansion<br />In January Target purchased 220 Zeller stores in Canada<br />Plans to covert 100 to 150 of these stores by 2013 or 2014<br />Target has also considered opening stores in areas such as Mexico and Latin America in the next 3-5 years<br />
Porters Five-Forces<br />In order of significance<br />Threat of substitution<br />Competition<br />Buyers bargaining power<br />Suppliersbargaining power <br />Threat of new entries<br />
Firm’s Strategies <br />Business-Level Strategy<br />More distinctive upscale fashion forward merchandise than rivals Wal-Mart and K-Mart. <br />Target credit card, which is good only at Target. <br />Corporate Level Strategy<br />Target Corporation has expanded it grocery offerings to enhance corporate strategy. <br />The Minneapolis bases Target Corporation plan to remodel about four-hundred of its general merchandise stores across the nation to bulk up the grocery retail. <br />
Tangible Resources<br />Physical Competency<br />Expect More, Pay Less<br />Expect more of everything<br />More great design, more choices and more designer-created items that you won't find anywhere else. And pay less. It's as simple as that<br />Human Competency<br />Reading + Education<br />Volunteerism<br />Arts + Culture<br />Target House<br />American Red Cross<br />The Salvation Army<br />
Financials<br />Net sales for a five week period ending on April 2,2011 were $5, 955 million<br />Contributes to a 4.5 percent decrease as compared to a five week period ending on April 3, 2010 in which net sales were $6, 233 million<br />Target expected sales for a five week period ending on April 2, 2011 would closely approximate its first quarter results from previous years <br />
Intangible Resources<br />Reputation<br />Known as a “cheap chic” retailer<br />Highest customer satisfaction in the country<br />Technology<br />Uses 15,000 virtual machines to run business critical workloads<br /> Has virtualized inventory, point-of-sale, supply chain management, asset protection, and in-store digital media<br />Innovation Resources<br />Target has given 5% of its income to the communities they serve<br />Has recycling stations in all of their stores for guests to take part in waste reduction<br />
Operations<br />Target Corporation over 1700 US Retail Stores<br />38 Regional Distribution Centers<br />4 Distribution Centers<br />4 Import Warehouses<br />4 Fulfillment Centers (supports Target.com)<br />Additional Offices in 40+ countries<br />