Published by MBA Skool Team, Last Updated: August 25, 2021
SWOT analysis of Target analyses the brand by its strengths, weaknesses, opportunities & threats. In Target SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like Target to benchmark its business & performance as compared to the competitors. Target is one of the leading brands in the lifestyle and retail sector.
The article below lists the Target SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Target SWOT Analysis:
For Target, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.
The strengths of Target looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Target :
1. Target Corporation has more than 400,000 employees
2. Revenue performance is good which is backed by a strong financial position
3. Target retail stores are recipient of several award and recognition
4. Only national retailer employing a Garment Hanger reuse program
5. Target retail brand has approximately 1900 stores in the USA
6. Sponsorship of major events and sporting events has enhanced it brand visibility
7. It offers a wide variety of products which include health, clothing, food, toys, pet care etc.
8. Target has good legacy as it has been established as one of the great retail brands in the USA since 1962.
9. Target is known for its good in-store experience as compared to its competitors
10. Target is known for its innovative store format like Target, SuperTarget, CityTarget, TargetExpress etc.
11. Target has comprehensive loyalty program and offers cards like REDCard for its customers
The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Target SWOT Analysis:
1. Past legal cases have affected the brand image of Target group at times
2. Despite being a strong brand, it hasn’t penetrated in to the international markets (focused just in US)
3. Target prices are on the higher side sometimes as compared to the competitors
The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Target SWOT Analysis:
1. Disposable income is increasing of the customers hence high purchasing power, this is true across different geographies so Target can venture in other markets
2. Tapping the international market specially emerging economies can help boost business for Target retail
3. Acquisition of smaller retail chains to increase business
4. More visibility through advertising and customer focused services
The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Target are as mentioned:
1. Huge competition from other international retail chains can affect Target's margins
2. Increase raw material prices can lead to higher manufacturing costs
3. Increasing competition and changing economic scenarios
There are several brands in the market which are competing for the same set of customers. Below are the top 18 competitors of Target:
Target retail is one of the largest discount retailer in the United States
Customer looking for consumer goods
Middle class and upper class individuals
Target Corporation is an American retailing company offering discounted prices on quality products
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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