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Taking A Look At Target's Strategy

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In 2006, Walmart faced competition from many of its competitors, who restructured their business models to reduce the price gap that once separated Walmart from their competitors (Ferrell, Hirt, & Ferrell, 2009). Evaluating the competition revealed that Target is the main source of competition and in comparison the price differences are so minute that the competitive advantage that Walmart once held no longer existed (Ferrell, Hirt, & Ferrell, 2009). The trouble that Walmart now faced was that the consumers who enjoyed shopping at their supermarkets for low prices have options of shopping at other markets that not only have low prices but are aesthetically pleasing at the same time. Walmart decided to attract one of Target’s main advantages
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Why are these changes necessary for Target to grow and succeed? Well, the answer is very simple. There has been a radical and drastic change in the demands of consumers, competitors, and the market. In addition to those changes there is many other online competitors such as Amazon, Walmart, Best Buy, JC Penney, Victoria Secret, and many others that are doing everything they need to be the best in online sales. The changes other competitors are doing is demanding Target leaders to make changes and necessary adjustments on their online sales.

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In order for retailers to be successful they must define their target markets and decide how they will differentiate themselves from competitors who want to serve those markets as well. These aspects must be carefully considered before proceeding, as the success of the retail company will largely be dependent on these factors. It is necessary for a retailer to first segment and define their market in order to move on to following steps. After the market has been segmented and defined, then the retailer can move on to the next step and differentiate their services from competitor. Nordstrom’s has made positioning and differentiating decisions that effectively distinguish them from their competitors.

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Recently, the merger between K-Mart and Sears allowed them to offer customers each other’s product in both stores and affected Target’s revenue growth. Another threat faced by Target is the ability to provide flexible fulfillment needs

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Since the company was founded as a corner store, the company’s business plan has always emphasized on expect more, pay less brand promise that sets it apart from its chief rival, Walmart. Although, Walmart is known for its low prices and offers a large selection to its customers; it’s customer service is often found to be nonexistent. This

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Target Corporation, headquartered in Minneapolis, Minnesota, is a leading mass industry retailer. George Dayton founded the company in 1902. Target found a niche market among other retailers offering products at inexpensive prices. Target’s brand promise, “Expect more, Pay less,” (Target, 2015), describes the customer anticipation of an exceptional shopping experience.

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Target’s design implements the retailer 's strategy to influence the customer 's buying

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Consumer Reports magazine reports that Costco is the leader and is the preferred retailer in the opinion of the readers based on factors such as product quality, value, friendliness of store and staff, ease of returning items, and overall service. Costco was also considered the value leader by providing the best bang for the buck. Walmart, Sam’s Club, and Target fell below Costco’s ranking in terms of popularity and value for consumers (Keshner, 2010). Psychographic characteristics typically go beyond the external focus and are not as easy to quantify but do identify why consumers buy a particular product or service (All Business,

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Furthermore, this paper will discuss some proposed solutions to the current ethical issues facing Walmart that could assist Walmart in its objective of continued growth in an ethical and sustainable manner. One of the major ways in which Walmart was able to grow and out compete its rivals was through its ability to provide retail goods to consumers at prices lower than competitors (Ferrell 407). Walmart ability to keep prices low is based on its ability to secure cheaply made goods from foreign manufacturers while also keeping the wages for its workforce low. The combination of cheaply made goods and a low paid retail staff means that Walmart can pass the savings to consumers which made it a popular retail shopping spot for lower to middle income Americans

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