COMPETITION – MARKET RESEARCH MANAGER ANALYSIS

COMPETITION – MARKET RESEARCH MANAGER ANALYSIS

Target is one of the largest retail companies in the United States, with several stores located worldwide. It deals with a wide range of products, which include food, electronics, health products, clothing, accessories, and beauty products, to mention a few. Walmart, on the other hand, is also a multinational retail corporation that operates a chain of grocery stores, discount department stores, and hypermarkets across the United States and internationally. Both Target and Walmart are considered big-box –discount stores, although Walmart is much more prominent in size. Walmart has more stores covering more space, thus implying having more inventory compared to Target stores(MIRZAYEV, 2019). They have two different operational perspectives with Target focusing on its profit margin by enticing the younger generation into purchasing more of its products while Walmart focuses on low prices to attract and retain more clientele Both Target and Walmart are also showing very aggressive promotional trends to promote more sales in their stores; for example Walmart had what was dubbed every day low price (EDLP), which has impressively helped with the momentum at the stores(Loeb, 2016).

The articles above will have relevant information regarding resource endowments of the two corporations, the value chain activities conducted by each store, the organizational culture as well as the competencies and the capabilities that each store has so as to carry out effective SWOT analysis.

Strengths

Strengths refer to the internal components of a business which are helpful to the organization. Target has some remarkable strengths that help it to stay competitive in the retail industry against Walmart. This includes, one Target has ventured in the aspect of differentiation of merchandise so as to distinguish its products from those offered by Walmart. Target has partnered with various dealers who have been able to provide stylish products at a low price. This is advantageous in that as Target, we have been able to offer better products at a lower price, thus providing us with a competitive advantage.  Another strategy that Target has been able to employ productively is price strategy against the EDLP pricing strategy employed by Walmart. Through price strategy, Target has been able to adjust its prices with the market trends; thus, whilst the prices are still low enhancing the customer base, Target has been able to achieve its profit margin effectively.

Weakness

Weaknesses refer to the harmful factors that can be used against a firm by its competitors. Weakness tends to derail the overall performance and outlook of an organization. Target company has not been spared from some of the weaknesses which tend to put it at risk. One is its dependence on supplies that are sourced from foreign countries. Despite the fact that supplies coming in from foreign countries are much cheaper compared to what is sourced locally, it poses a risk due to the uncertainties involved. This is in case of economic changes or political changes that may happen in foreign countries, which might cause a shift to the supplies and revenues that will be gotten by Target. This is not the case with Walmart since it sources its goods mainly within the United States. Breach of data is another weakness affecting Target. Following a breach that happened a while ago where important confidential information of individuals was leaked compromising the debit and credit card holders customers eroding their confidence for the store (Kassner, 2015).

Opportunities

Opportunities refer to the favorable conditions which can bring a competitive advantage for a firm. Target has several avenues that it can exploit to be able to maximize its objectives. For instance, Target has great customer loyalty and thus can enhance its customer base by expanding into the more populous cities in the United States. In addition, with the onset of e-commerce, where a business is being transacted online, Target has adopted a strong online presence in line with the dynamics of how business is being carried out. Thus with Target.com, more people across the U.S.A and the world can view and buy products from Target stores (Team, 2017).

Threats

Threats refer to the unfavorable conditions that negatively affect the business. They may result in the damage of the company, and it is, therefore, wise to look for ways to deal with them early and in an appropriate manner to prevent any future losses. One of the major threats facing Target is the overlapping of offering that is, of products and services, with its competitors, which is majorly, Walmart. The products that Target is offering to its customers across the stores are the same products that Walmart is also selling. This results in pressures on prices, especially when both of them insist on low prices for their commodities. The rising costs of labor are also putting pressure on the expenses being incurred by target due to the employees it has across various stores in the U.S.A. It has thus reduced the profitability of the firm; thus, measures should be taken to prevent further decline in the profits.

 Who will come out ahead?

Following the given SWOT analysis, Target is quite a remarkable retail company with its presence largely felt across the United States; however, compared with Walmart, it will take the second place. This is because Walmart is larger in size and also traverses international markets implying more revenue collection. In addition, Walmart has a variety of products compared to Target, and it also has a greater online presence that commands a high customer base. Walmart’s prices are also considerably low throughout the seasons, attracting more clients. Thus, compared with Target, Walmart is better positioned in the long run to come out ahead.

As a market research manager of a national retail store, it is my duty to conduct a SWOT analysis to gather information on the various conditions in the market and assess the trends of the consumer and fellow competitors. This information will be helpful to the management to assist in decision making to help meet the objectives of the business. Our store is well established across major cities in the country and with a renowned brand name that is highly respected by the customers. The customers are always delighted with their shopping experiences at our stores. This positivism has gone a great deal to enhance our customer base. However, one of the weaknesses observed against our fellow competitors is the limit in the inventory as we are not as diversified as other firms. This may discourage clients who look forward to purchasing everything under one roof. On the bright side, with the rise of opportunities in e-commerce, the business has our business has been able to grow as more people are able to access our products online, enhancing our customer base. The threats encountered are the aggressive moves by the biggest competitors since their presence overshadows our efforts. Thus more effort should be placed in marketing and advertising to make our brand stand out and more recognizable.

References

Kassner, M. (2015, February 2). Anatomy of the Target data breach: Missed opportunities and lessons learned. Retrieved from https://www.zdnet.com/article/anatomy-of-the-target-data-breach-missed-opportunities-and-lessons-learned/

Loeb, W. (2016, May 20). Walmart and Target: Contrasting Results And Outlook. Retrieved from https://www.forbes.com/sites/walterloeb/2016/05/20/3209/#7dc9206d3ea5

MIRZAYEV, E. (2019, September 3). Walmart vs. Target Business Model: What’s the Difference? Retrieved from https://www.investopedia.com/articles/active-trading/070715/target-vs-walmart-whos-winning-big-box-war.asp

The team, T. (2017, June 15). How Target’s E-Commerce Initiatives Will Impact Its Financials. Retrieved from https://www.forbes.com/sites/greatspeculations/2017/06/15/how-targets-e-commerce-initiatives-will-impact-its-financials/#119b7d361b6c