Thursday, June 20, 2019
Company(Target) Firm Analysis Research Paper Example | Topics and Well Written Essays - 750 words
Company(Target) Firm Analysis - Research Paper ExampleTarget Corporations retail segment is inclusive of food send away stores, general merchandise stores, and an integrated online business, target.com. Target Corporation also operates a segment for credit cards that offers Visa credit cards and branded proprietary products. TGT currently operates one thousand seven hundred and sixty seven target stores across forty-nine states in the U.S. (Forbes.com 1). Target corporations financial year ends on January the 31st. This paper is a company research project on Target Corporation. Target Corporation aims to reinforce the companys value proposition via the striking of a balance between the core components of its brand mission and promise, i.e. expect much and pay less (Forbes.com 1). Expect more refers to target Corporations emphasis on trends, which differentiates it from its competitors, for example, Walmart while pay less is meant to underscore the Corporations notion concerning c ompelling presentation of its consumables and commodities as their key strategy. Target Corporations recent rollout of their P-fresh expanded food format is likely to connect well to their consumers, which should improve traffic, as well as same store sales growth (Forbes.com 1). Solid underlying trends within target Corporations credit business atomic number 18 expected to bear a boost to the companys earnings in the future. ... Target Corporations well differentiated stores will give it an edge their primary(prenominal) competitors, like Walmart. Their balance sheet and cash flow remain in a healthy position. However, increased competition and a competitive pricing milieu from Walmart are expected to portend an adverse effect on the future of target Corporation. TGT seems to be losing focus on the sale of womens apparel that accounts for more than ten percent of their total sales (Forbes.com 1). Target Corporations credit business is increasing their exposure to various deteri orations in the credit trends of their consumers, for example, high default rates that could have a significant impact on their profitability. Their escalating utilities and healthcare costs could lead to increased SG&A expenses. Digest Group analysts forecast the Corporations long-term growth rate, as ranging from lows of nine percent to highs of fifteen percent, coming up with an average of 11.3% (Forbes.com 1). These analysts at Digest Group are of the belief that target.com is the companys fastest growing segment. This segment provides an online shopping experience, which adds new online tools, for example, the online gift finder that is driving sales up. In addition, TGT is building a seamless shopping experience for their stores, Target.com and their catalog. Over the last decade, TGT has utilized its marketing expertise in the transformation of the trademark bulls eye into a symbol that is universally recognized, which, in turn, has helped to establish its retail format int o a unique destination for clients from the United states (Forbes.com 1). TGTs marketing approach is focused on the retail end as a brand. TGT perhaps, has played the
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