This is a proposal to Target to lease to Apple Inc. the existing garden center land.

1. Proposed Lease
to Apple Inc.
By Jesus Pineda

2. Why lease to Apple
● Differentiation
● Increase market share
● Revenue growth

3. Differentiation

4. Differentiation cont.
According to Porter, differentiation involves
making your service different and attractive
than of your competitors.

5. Increase market share
Many customers of both Target and Apple are
trendsetters and live in urban areas.

6. Increase revenue
● Revenue will be generated two ways:
1. By the lease to Apple Inc. $1.13-2.00
sq/ft.
2. By the percentage of sales that Apple
sells.
1-3 % profit margin

7. Apple's balance sheet

8. Cost
● Cost will vary from store to store based on
region.
● Ranging from 3.5-4 million to renovate the
buildings, for a total of 1.04 billion.
● Will be financed with long term debt

9. Financial leverage

10. Timeline
● Completion of 260 stores will take
approximately 2 years to complete.