MGT/576 WEEK 6: Summative Assessment: Strategic Recommendation Memo

Industry force 

Strength

Provide a justifying your determination with examples

High 

Medium 

Low 

Example

x

This is why I believe it is medium.

Threat of new entrants 

X

The American retail market is considered a high potential and it is an easy to enter market. this makes the industry to attract potential investors in small, medium, or large scale categories

Power of buyers 

X

Due to high competition and threat of substitute, buyer power is high in the retail market something that affects Target Corporation. The company is forced to comply with needs of the buyer to remain relevant in the market for instance offering competitive prices.

Power of suppliers 

X

The supplier power is low due to high supplier competition in the market. as a matter of reality, it is the manageable supplier power in the industry that makes it possible for companies in the industry particularly Target to offer competitive products and services (Alshakhoori, Alkenaizi, & George, 2016)

Power of substitutes 

X

Due to high demand of retail products in the American economy, substitutes remain a major threat that brings along unhealthy competition. Target Company from such challenges is compelled to demonstrate to clients the difference between original products sold in their respective stores and the substandard products sold as substitute for clients to remain loyal.

Rivalry among competitors 

X

Target is faced with very stiff competition more so from other mega stores offering similar products and services. The company is compelled to apply different strategies to create a difference in the market as the only way out to stand out in a heavily competitive market (Okatan, & Alankuş, 2019)

Complementors 

X

There are also many other companies both small and medium that sell products and offers services that complements the products and services sold at Target Corporation.

References:

Alshakhoori, N., Alkenaizi, A., & George, S. (2016). Business Strategies of Discount Retailers: A Comparative Study of Target Corporation and Costco Wholesale Corporation. International Journal of Research in Management, Economics and Commerce, 6(3), 27-40.

Okatan, K., & Alankuş, O. B. (2019). Effect of External Innovation Capacity on Company Level Innovativeness. Journal of Organisational Studies and Innovation, 6(4), 1-19.