Introduction
This presentation discusses the abundant opportunities Target Corporation can pursue to win customers. Before finding the most attractive opportunities, the strengths and weaknesses will be addressed along with existing environment characteristics that influence trends in customers’ expectations and business processes. Opportunities for social, environmental, and economic value will be discussed before narrowing down on the main opportunity Target should pursue first and prioritize.
Organization Description: Target Corporation
Target Corporation is a general merchandise retailer with physical and online stores selling such products as apparel, accessories, food and beverage, furniture, and much more. It has stores in all fifty states and employs more than four hundred thousand workers. Since the 1990s, Target’s tagline has been “Expect more. Pay less” (Corporate Target, 2021). The company’s popularity is illustrated in the high total revenue for the year 2021, which was $106 billion.
Target’s Strengths and Weaknesses
Regarding strengths, Target has a unique positioning against competitors such as Walmart has created a perception that Target offers more premium products even though the prices are affordable. The company invests in positive shopping experiences both online and in-store, while private-labeled products attract customers because they cannot be found anywhere else. Target knows how to capture a younger audience with fashionable clothing lines. Compared to competitors like Walmart and Kroger, Target is less affordable and does not have many stores internationally. The quality of e-commerce services is lower because of the company’s store-oriented approach.
Aspects of the External Environment
The current external environment dictates trends for the company’s improved position. Notably, Target should consider that customers rely heavily on online shopping and expect quick and affordable delivery. Higher prices may become the reason customers choose competitors, which is why Target should strengthen its rewards program. Besides, increased customer loyalty may come from the diversification of a product range and the expansion to international markets.
The current domination of Amazon in e-commerce makes it challenging for other companies to compete, mainly due to the rising value of online feedback. Therefore, Target may invest more in social media marketing (SMM) and online advertising to build a loyal customer base. Moreover, the adverse economic impact of COVID-19 calls for restructuring some operations, particularly shipping and handlining. Finally, Target should increase its engagement in sustainability efforts.
Opportunities to Add Economic Value
To add economic value, Target is recommended to reduce capital costs and increase economies of scale. Besides, to attract customers and increase revenue, the company can invest more in brand collaborations to increase popularity and offer more saving opportunities for customers who find value in deals. The expansion to more locations worldwide will increase brand popularity and loyalty. Finally, product range diversification, including a more significant number of collaborations with other brands, may increase Target’s economic value.
Opportunities to Add Social Value
A business can add social value when it takes care to meet the needs and expectations of a wider community. For Target, the opportunities to add such value include broadening the range of employee training programs, offering employment opportunities to underserved populations, and engaging employees in social support programs. The company should give back to local communities through charity and support non-profits. Affordable product ranges and cost-saving programs will show the customers that Target cares about everyone’s financial situation.
Opportunities to Add Environmental Value
Environmental value is added when organizations increase their engagement in sustainability initiatives. This can include more efforts given to corporate social responsibility, implementing recycling programs, or introducing eco-friendly product ranges that customers can choose from. Besides, a circular business model can help significantly reduce the business’s environmental impact, including using renewable energy as an alternative to traditional approaches.
Prioritizing Opportunities
Expanded and improved e-commerce services are recommended to prioritize due to increased reliance on online shopping. The company should consider one-stop shopping solutions and provide same-day delivery, which are convenient options that customers value. The same assortment of products available online as in physical stores will increase shopping convenience. Improved application and website shopping integration is what customers want and need, and collecting feedback and acting on it is crucial.
Conclusion
To conclude, Target’s business improvement opportunities tend to rely on customers’ expectations. Expanded and improved e-commerce services are recommended to prioritize due to increased reliance on online shopping. Online sales will inevitably attract more returning customers, while same-day delivery and pick-up services will improve convenience and satisfaction. Online sales, supported by SMM will facilitate more brand collaborations. After capitalizing on this opportunity, it is recommended that Target move on to adding social value.
References
Adrian, T. (2021). Corporates after COVID: Risks, recovery, and restructuring. Web.
Chopra, K. (2022). What Target is doing right in the pandemic era e-commerce race. Forbes. Web.
Corporate Target. (2021). All about Target. Web.