Target is the second best retail company after Walmart, which is not only the biggest but the largest in the industry. Target comes after Walmart with a focus on meeting the needs of the customer especially the young and trendy who have a focus on style and image. The organization has a strong brand name and image that is well recognized by its customers. The business model of the company is angled on innovation. The company is bent on creating new brands and product lines to meet the needs of its customers and also to fall in line with the new trends and changing customer demands. This explains the wide range of designers that the company is in contact with. The company also tries to adjust itself in accordance to the changes in the market in an attempt to keep its competitive advantage. Competitive advantage is one of the key factors that help to keep Target Corporation at the second place among the top in the retail industry.
According to Hisrich and Kearney (2014), a company can use the following six competitive advantages to outsmart the competition and stay ahead in the field they are based on. These are:
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• Adapt to external environmental changes
• Be customer driven and focused
• Have flexible strategies and processes that can meet the needs and diverse requirements of customers, suppliers, distributors, regulators, and stakeholders
• Be able to quickly respond to the fast pace of change in the environment by recognizing and taking advantage of opportunities that emerge
• Proactively meet and exceed the needs of customers in light of the existing competition
• Actively engage in R & D to continuously prioritize the development of new products, services, processes, markets, and technologies
In order to stay at the second position in the retail industry, Target Corporation has had to follow the aforementioned strategies of competitive advantage. The company has always been willing to adapt to environmental changes. Currently, the retail industry is experiencing a shift from large box stores to smaller convenience stores that are fit for urban areas. Apparently, the smaller dollar stores are found preferable in the urban setting as compared to the larger box stores hence can rack more profits. Target has recently placed a focus on redesigning their stores to meet the requirement of the urban areas. The larger box stores are slowly being replaced with Target Express neighborhood sized stores. The sliming of these stores has been for the purposes of being well accommodated in denser areas.
The digital wave has also helped to refine more industries, and the retail industry has not been left behind. The industry is experiencing a shifting preference from actually going to the mall to shop to online shopping. This ‘click and collect' trend has been a major boost for companies such as Amazon who is now among the biggest competitors that Target now faces. The company has had to move and mobilize its systems towards e-commerce to be able to compete favorably and not be displaced by its competitors.
The company has always been customer driven and focused. The company business model focuses on meeting the needs of the customer, hence the new brands and product lines that are being launched by the company. Unlike its biggest competitor Walmart, the company has had a focus on creating new merchandise that is trending whereas Walmart has had an all-time focus on low prices. Nevertheless, the organization has endeavored to make the shopping experience at Target different, wonderful and satisfactory hence the large following of customers.
Target has been open to new ideas and innovation in an attempt to devise flexible strategies and processes that meet the needs of all who are in contact with them. The wide range of designers is meant to deliver the demands of customers fast. The large customer following is meant to keep the suppliers and distributors on toes to deliver products. This is why the company places a special focus on marketing and product promotion to attract and keep customers.
Recently, Target has recorded a decline in the sales and a loss in its cool factor which has always been sleek merchandise and fancy products. The company has recollected itself to start opening smaller and super-convenient stores and also lowering their prices to retain the cultic following of customers that it has enjoyed. Target has demonstrated fast response by taking advantage of the concept that Walmart uses so as not to fall back in the retail environment.
Target proactively meets the customers’ needs even while facing stiff competition from Amazon and Walmart. The company has placed special focus on staffing to ensure that the shopping experience at the enterprise is unique compared to other retailers. The new product lines that are trendy and image conscious are available all under one roof thus the Super Target stores that are loved by all. The willingness of the staff to assist customers and the provision of all items under one roof is the best competitive advantage that the company has had.
Research and development activities have been the source of the companies high-end profile as the enterprise has been bent on creating new brands and product lines to address the needs of the image conscious and younger customers. The company has always had new merchandise and sleek products that have enabled it to have an unending and ever-growing cultic following. The shift to e-commerce has also had the company creating the Target Red card which is used to offer discounts and the online shopping platform. These have boosted sales.
In conclusion, Target is the second biggest retailer in the US. The company has always placed its focus on the customer and provided sleek merchandise and products that attract and retain customers. The enterprise has shifted to smaller convenience stores instead of box stores and online e-commerce in response to the changing environment.
References
Hisrich, R.D. & Kearney, C. (2014). Managing Innovation and Entrepreneurship . London: Sage Publications.
