Macro Environmental Factors

Q.1: What micro environmental factors have affected Target’s performance over the past few years?

Over the past few years, following are the factors that have affected Target’s performance:

1. Competitors:

Walmart’s strategy of providing products at a very low price, affected the consumers in the economic crisis of 2008. This led to Target’s decline in market share as Wal-Mart had a huge micro environment affect as a competitor.

2. Customers:

As the recession hit, unemployment rose and people started becoming more responsible with money, the consumer priority changed. Since Target was known for style, fashionable in slightly higher price, in the end, they hurt themselves. Target should have done a lot better of a job in providing customer

Firstly it brought up “mini grocery stories” which carried a narrow selection of 90% of the food categories found in full-size grocery stores, including fresh produce. This led to customer convenience, saving their time and effort. Second, they surprised everyone by discarding the bulls-eye, replacing it with big, colorful, upward pointing arrows on a white background, with the new brand name, “up and up”. The intention was to attract new customer and therefore get more of market price, with their priced at 30% lower than the comparable name brands.

Q.2: What macro environmental factors have affected Target’s performance during that period?

Economic factor was the macro economical factor that affected Target’s performance during that period. The economic condition over the last few years since 2008 was tough as the economy was in recession and inflation was on rise. With rise in Unemployment, people started to have a sense of monetary responsibility. This led Target to formulate its “Pay Less” strategy and stress aggressively on it.

Q.3: By focusing on the “Pay less” part of its slogan, has Target pursued the best strategy? Why or why

Their motto “Expect More” “Pay Less” could be used with the current strategy to let customers know that they deserve better or higher quality clothes, appliances, and other products, which other stores do not provide. Like adding, “You Deserve it” at the end of the current motto will have people thinking and saying “Do I?” This might make it possible to tap into a completely new market segment and help in gaining profits and revenues in