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TARGET CORPORATION 6

Target Corporation

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Introduction

Target Corporation is classified as one of the biggest retailers in the United States. It was founded in the 1900s but functioned poorly, using the established business model for almost 60 years. In 1962 the company opened its discount store, similar to the current business model it uses today (Plachkinova & Maurer, 2018). Target has adopted e-commerce and in-store shopping approaches for the customers'. The aim is to ensure that it increases the number of customers shopping with them at a particular time. Using the advancement in technology, it is possible to attract more customers in the new generation who prefer to shop online. At the same time, some people prefer to come to the store themselves and choose what they want. Having a store where they can accomplish this goal becomes necessary in advancing a company's profits.

Target business model

The intense competition in the retail industry worldwide has led to businesses developing sustainable business models. Target's well-thought-of business model generates massive revenues and profits every year (Alsharari, 2021). The business model and the company consists of a multi-pronged strategy that enables the company to operate effectively and produce huge profits. The business model consists of a range of cells and labels, with brands at the center of the business model. Target gets its products from all over the world, but some private labels are available in retail stores. The company has more than 40 labels, accounting for a third of the revenue it produces yearly. Since these products are owned by the company and produced in-house or made by contacted manufacturers, the company can dominate the merchandise segment and help differentiate its product Lines.

Target uses e-commerce as a business model to enhance competition in the retail industry. E-commerce is a trend that is gaining momentum in the retail industry today. It includes developing an e-commerce platform or using the available platforms to reach as many customers as possible. With the rapid development of technology, Target has adopted various platforms to reach as many customers as possible, including its e-commerce platform (Chun, 2019). The e-commerce approach combines an effective marketing strategy to create a compelling brand image. Target has been able to formulate its business model so that it automatically takes care of its brand image. It sells trendy products at lower prices instead of cheaper products in bulk. As a resource, the strategy leads to the company appealing to the younger generation. At the same time, the company ensures that it continues to operate its business model as time changes. One of the examples is the reduction of the sizes of its stores to suit the strategy of targeting the younger and urban population (Volpe & Boland, 2022). The company is also locating its stores strategically within the urban area to reach more people. This business model has resorted in an increase in profit margins for the company over time, even though it was established almost a century ago.

Target company Vision and mission

Target aims to help families discover the joy of everyday life. The company has the promise of surprise fun is an inspiration but every time a respective of where and how the customer shops. The company vision statement is "guided by a commitment to the great value the community diversity and the environment."

Vision, mission, and objectives for sustainable competitive advantage

But it has gained a more significant competitive advantage of a time against its competitors, such as Walmart. The aspects such as providing a greater shopping experience at anytime and anywhere for the customers have made it easier for them to access the products easily. Therefore, whether the customer is shopping online or in physical shops. Providing friendly customer service has ensured the company has a high inventory turnover rate, increasing its profitability. Target Company has also adopted community engagement as a part of its sustainable competitive advantages (Cao & Li, 2018). By sponsoring the needs of the diverse communities they serve and assisting with innovative programs and sponsorships, the company has built stronger Communities. As a result, there is increased understanding amongst the people of the benefits that target brings to the community, which has increased word-of-mouth marketing for the company.

Three tests of a winning strategy

The target company has been enhancing its strategies both at the corporate level business unit and the functional level. The company uses a strategic management process to enhance the performance of these three levels. Competitive advantage refers to the factors that allow the company to perform better than its rivals (Mukonza & Swarts, 2020). It is these factors that increase the sales margin and performance over time. The goodness of fit test shows that Target's strategy matches the company's internal and external situation. Therefore, the company will continue performing effectively by keeping the available resources and the market segment. The competitive advantage test shows that the company enjoys more significant benefits from sales, brand image, and brand growth. The performance test shows that Target has been increasing in performance and having an upward shift in the number of sales. The increase in revenue has been shown by constant changes in the business model to fit the changing times.

Conclusion

In conclusion, Target Corporation has existed since the 1900s and has grown in its performance over time. The company uses different methods to enhance its performance. It includes the development of their label of products and developed e-commerce platforms to reach as many people as possible. The business model has enabled the company to enhance its competitive advantages and growth in profit margins.

References

Alsharari, N. M. (2021). Management Accounting Practices and E-Business Model in the US Walmart Corporation.  Accounting and Finance Innovations, 3. https://books.google.co.ke/books?hl=en&lr=&id=27ZaEAAAQBAJ&oi=fnd&pg=PA3&dq=target+corporation+and+walmart+competing+in+the+market&ots=FVBPoErtGm&sig=Ji-nSgNQfbabM3t2lKRqiv4D4rs&redir_esc=y#v=onepage&q=target%20corporation%20and%20walmart%20competing%20in%20the%20market&f=false

Cao, L., & Li, L. (2018). Determinants of retailers' cross-channel integration: an innovation diffusion perspective on omni-channel retailing.  Journal of interactive marketing,  44, 1-16. https://www.sciencedirect.com/science/article/abs/pii/S1094996818300288

Chun, S. H. (2019). E-commerce liability and security breaches in mobile payment for e-business sustainability.  Sustainability,  11(3), 715.

Mukonza, C., & Swarts, I. (2020). The influence of green marketing strategies on business performance and corporate image in the retail sector.  Business strategy and the Environment,  29(3), 838-845. https://onlinelibrary.wiley.com/doi/abs/10.1002/bse.2401

Plachkinova, M., & Maurer, C. (2018). Security breach at target.  Journal of Information Systems Education,  29(1), 11-20. https://aisel.aisnet.org/jise/vol29/iss1/7/

Volpe, R., & Boland, M. A. (2022). The Economic Impacts of Walmart Supercenters.  Annual Review of Resource Economics,  14. https://www.annualreviews.org/doi/abs/10.1146/annurev-resource-111820-032827