These stores offer a wide array of products and services. Sears' domestic sales have been consistently declining because its low-end competitors (e.g. Walmart and Target) and mid-tier competitors (e.g. J.C. Penny and Macy's) have been increasingly capturing more department store market share through wider selection and steeper discounts, thereby squeezing the company's sales and margins. (IbisWorld, 2012). JC Penney has many risks that could impact their sales and profitability. Highly competitive retail industry is one among them.
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.
Competition According to Hoovers, Target main competitors are Macy’s, Kohl’s, and Sears (Hoovers, n.d.). The reason why these retailers are competitors is, because they are large department chains, and they sell similar merchandise as JCPenney. For instance, these retailers offers a wide range of products which includes, apparel, footwear, jewelry, housewares, handbags, cosmetics, electronics, and many other products. The department stores Kohl’s, Macys, and Sears all sells different type of brands that sets them apart from competitors, as well. Kohl’s added Under Armor to its store, as a way to attract younger shoppers who shop there.
Unlike their US counterparts who enjoy one-stop shopping, Canadian shoppers prefer to buy from multiple stores. Target should have taken this factor into account prior to entering the US market. Target’s recovery in Canada would really benefit from price reduction since quite many customers complained of higher prices than corresponding Target stores in the US. Also, Target Canada should have a similar range of products as those in Target’s US shops. The survival of Target in Canada can also benefit from effective and intense competitive measures such as cut prices, wide range of products, and filled shelves.
If Target finds that there are many sellers and producers in the market place beating their
It could be a huge part of future growth outlook overtime.” I feel, as this is an accurate statement. Target is such a huge company they are able to take the risk and try new concepts. I think theses targets might be a struggle in the beginning due to trial and error they are going to have to figure out what consumers need from the target in their specific city or town. In the end if they stock the stores correctly then consumers might not even feel like they are missing out on others goods that they can not purchase from that location.
“Launching the Target brand in a new country was his biggest task to date” (Castaldo). Meetings were held every day until the launch date for Target Canada. In the meetings, they would discuss the development of their new supply chain systems. There seemed to be new problems every day. “The company was having trouble moving products from its cavernous distribution centers and onto store shelves, which would leave Target outlets poorly stocked.
Target is a multi-location retailer entity with many store fronts located in select markets across the United States. I would suggest that Target supply chains are a mix of vertical chains, where Target has control over the end to end supply chain, and horizontal supply chains, where Target must work and communicate with other suppliers to assure products that customers want will be stocked on Target’s shelves. One might ask, why would target have to work with suppliers in a horizontal supply chain, and the obvious answer could be that there are many outlets some manufacturers can sell their good through, Target is one of many options, and being too assertive, Target may lose opportunities to grow client base and loyalty if certain items cannot be found on their shelves. Items that are sold in stores are most likely delivered Target’s own distribution centers. These center’s provide Target the opportunity to purchase more products from other suppliers and those distribution centers can ship precisely what a store may need, as opposed to having to purchase certain quantities that could result in over stock and reserve for scrap charges for unsold product.
This increased the competitors, and made the consumers more powerful in driving costs down for the industry. Best Buy has adapted with using the price matching tool to preserve the customer retention. Threat of a new entrants- A physical retain store attempting to enter the market does not present a threat for the company. The reason is due to the tough restrictions and current laws for a new retail store to grow in the industry. Although, an online retail does present a threat because there are so few barriers they need to avoid to start up.
A new competitor is a risk occurrence that is completely out of the control of the business. Consumers have different tastes. A new competitor may be able to tap into some of Target’s core customer based with some differentiation. Target will need to have be to tap into and respond to those customer needs by altering its products and services to match those of its competitor. If Target has effective risk management system to track external risk like changes in customer needs or wants, the retailer will be ready if another competitor tries to enter the marker to meet those needs.
Purchasing items online has become a major threat to companies who have long been selling proucts in physical stores. However, online stores, including Amazon, were never a real threat to grocery markets. This is due to the same reason why Amazon decided to make the purchase in the first place, consumers have favored to shop for their grocery products in person. But thanks to the purchase of Whole Foods and Amazon’s lowering of prices for higher quality goods, Whole Foods/Amazon has become a major threat to grocery markets. In June of 2017, the six largest food retailers announced a combine lost of $12 billion in value after Amazon announced they were going to lower Whole Foods prices.
This would increase our profit margin. Threats: Dubbo several other retails in town that can be considered a threat to Target. Big W, Myer and Best and Less would be the best contenders for Target customers in the area. In the Dubbo store we combat other retailers with strong visual merchandising and excellent customer service. Being a smaller city, the town has a strong sense of community.
The Indonesian Mattress and bedding industry will be analyzed using the Porter’s 5 forces model: Porter five forces that determines an industry’s competitiveness (Porter, 1979), which will give an indication of how the industry affects DAP. The five forces are the “Bargaining Power of Suppliers, threat of new entrants, threat of substitute, bargaining power of buyers, and the industry’s rivalry. Threat of Substitute products or services: Low As a mattress manufacturer, DAP supplies Spring Bed Mattresses, Box Spring Mattresses, Memory Foam Mattresses (Tempur-Pedic) and Latex Mattresses.
1.1. Positioning the company – Competition Porsche Automobile Holding SE, usually shortened just to Porsche, is a German holding company with investments in the automotive industry and has about 18,000 employees all over the world (Porsche, 2014). The main competition for Porsche’s high-end cars like the 918 Spyder or the 911 Turbo or Turbo S is arguably from Italian specialty automaker Ferrari. In similar demographics the brands appeal through traditionally vehicles to quite different personalities.
Services and SAS Cargo was to be discontinued and outsourced to third parties. SAS has a huge cost for staff compared to its competitors (see appendix xx). In By outsourcing the operations, SAS will be able to minimize the cost without compromising its core competencies. Porter's five forces compare with Barney Resource Based View theory The theory of five competitive forces by Michael E. Porter shapes the strategy of firms and the nature of competitive interaction within an industry.
