Target SWOT Analysis


Target is the second-largest generalized merchandise retailer in America and has an employee pool of 220,000 people.

In 2004, Target has about 1,172 while 136 Super Target, making up 1,306 stores. from 2003 the Total square footage of the company increased to 8.2%. The company has a strong network and distribution channel comprising of 25 warehouses that supply their stores. Presently, the distribution channel and infrastructure supplying the stores has grown stronger supporting its aim of opening of about 2000 stores till 2010.

Target has well positioned itself in the market by developing strong customer base, positive marketing, credit card business and exclusive product lines, and therefore, experiences sustainable growth.

Where other companies provide dividends to the shareholders annually or semi-annually, Target gives the dividend every quarter and hence attracts the investors.

The company also sells and markets its products online and is deriving a good portion of profits and success through its website.

Target pays attention to and chooses its distribution and retailing very carefully. The company focuses on "consistency of experience" and makes it stores and products easily accessible for the customers. The company has identical stores while differentiating it from Wal-Mart.

Target focuses completely on differentiation, and has succeeded in making itself a unique low -cost retailer. Target is an original and influential retail store. The mission statement of the company describes its goals as: clean stores, enthusiastic customer service, large merchandise inventory, speedy checkout.

Target believes in innovation, new ideas and tries to come up with great new products. It focuses on its special products such as Clear Rx greatly. This helped the company sales increase to over 7% of the total sales and adds to about 33% of the guests.

Target is continuously working to makes its distribution channels stronger and makes its offerings accessible for existing as well as potential customers.


Target as a company has several different areas to work on and develop. These include its strategies about pricing, dealing with their two other divisions, strategic operations, advertising to their customers and future investments.
Target does not deal globally and does not have a presence in several markets and countries of the world. On the other hand, most of its competitors are dealing internationally and generating revenues and profits.

Over 7% of the sales amount of the company is generated by the pharmacy guests. However, in turnover rate of pharmacists is very high as they have a tough work routine.


Some of the Top designers have agreed to work with Target and sell their items at affordable prices under a brand name to its customers. Victoria’s Secret is one of these designer wear companies.

The company provides Gift cards services in the store as well as online, thus reaching the computer literary mart and increasing sales.

For competing companies like Wal-Mart, the company is now planning to enter the international markets.

The company has introduce RED cards and is generating profits through its related credit bill operations.


The competitions are many as they are offering in a wide range of products and services.

At some places the Target stores are positioned with 10-mile distance of its major competitors which makes switching easy for the customers.

Some of the competitors like offer low cost products or use premium value strategies and hence, attract the customers more.

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