There aren’t many places that a Target doesn’t exist anymore. They are in every state except Vermont. The location and frequency at which Targets are located, is one of the strategies that has helped them become one of the biggest retailers in the U.S. Not only do they make clothing accessible but household items are now part of their inventory as well, and they have recently expanded their stores to carry groceries as well. Another major strength is their ability to match competitors while maintaining the quality of their product. Also included in most of their stores is a Starbucks or some sort of fast-food chain, which encourages shoppers on their way in or out to spend more money.
There are few weaknesses in the Target Corporation, as recorded by CNBC that their Holiday sales superseded expectations, given that “holiday shoppers held back from discretionary spending in an uncertain economy” (“Target earnings top forecasts “, 2013). One of the problems is that even though they match competitors in pricing, there are still some household items as well other supplies that the price is too high, as well as not having as broad of a choice as other retailers based on certain products.
Cutting prices could certainly be an opportunity that Target uses, especially when it comes to toys. While other stores such as Toys R Us still prove a strong rivalry, if Target cut the prices they could easily gain more consumers. They could also provide a larger selection for groceries, maintaining the pricing while providing a wider selection.
A few threats to Target would be if another retailer opened and cut the prices even further back. Walmart seems to be their biggest competitor in supplies rather than clothing. Another threat would be if a clothing retailer such as Forever 21 decided to absorb some of Target's clientele, providing better prices while still being able to sell the same amount of clothing.
Walmart is Target's biggest competitor, (“Target Corporation”, 2013). Within the next year, Target will face the same struggle that it always has in competition with Walmart, however they will also be up against Kmart and Costco. If any of these stores decide to drop prices any lower in the next five years, Target will certainly have to change their marketing, and their prices.
Target Corporation names of competitors. (n.d.). Target Corporation Competition. Retrieved from http://www.hoovers.com/company-information/cs/competition.Target_Corporation
Target earnings top forecasts, despite holiday weakness. (2013, February 27). CNBC.com. Retrieved from http://www.cnbc.com/id/100497566