Strengths
The Target Company is an established and a well-recognized organization that commands a lot of respect from the customers. It has several strengths that have made it stand out in comparison to Walmart stores. The first strength of target is that it enjoys a large customer base unlike Walmart (Target Looking Better than Walmart for Investors). Target has never been accused of any hostility or resentment that are normally associated with its competitors especially Walmart. Its good relation with the customers has made it develop into a brand name, and people find a lot of fun shopping in it relatively to Walmart. Secondly, Target has a strong marketing strategy in the areas of the retail market. Target mainly deals with highly profitable retail market areas such as in fashion and furnishing and other aspects of household furnishings.
Weaknesses
Despite the numerous strengths Target enjoys over its competitors, it experiences some glaring weaknesses that threaten its profitability and the prospect of it growing beyond its current state. The first major weaknesses that Target faces in relation to Walmart are that it has failed in its bid to adjust to the changing trends. With the growing customer base, it is imperative for Target to open smaller retail shops to increase its accessibility. Over the past two years, Target has only been able to open a paltry eight retail shops in contrast to their main competitor Walmart which has been able to open between 270 to 350 smaller stores at the same time (Target vs. Walmart: Who's winning The Big Box War?). Secondly, the major weakness faced by Target in relation to its competitors is in the area of diversity. Whereas Walmart has been able to incorporate lucrative businesses such as financial services and filling stations, Target has failed to explore these areas of the economy.
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Opportunities
Target is poised to benefit from many opportunities in the present and future as compared to its competitor Walmart due to several factors. The United States' middle-class population's income is currently on a declining trend. Such a prospect is likely to benefit Target as the customer base is likely to increase markedly because people will have less money and therefore will need to shop where they can get value for their money through the discount stores. Target will benefit from this scenario in relation to Walmart because it is classified as a discount store that is not perceived to be a lower-class retailer. The second opportunity that may elevate the stature of Target above that of its rivals is the use of new sales channels. Such channels include same-day delivery, ‘'click and pull,'' and neighborhood stores. Target is already experimenting with same-day delivery via the use of Google Express, unlike Walmart.
Threats
One of the major threats that Target is experiencing at the moment is the ability of Walmart to infiltrate some of Target's business areas. It has been able to expand its operations and opened many smaller retail shops. The second threat that faces Target is the competition that is not only caused by Walmart but also Amazon which is an online based business with an excellent reputation and a lower price of commodities compared to Target (Walmart Vs., target: which retailer is more powerful?)
In analyzing which company comes out ahead, Target still has the edge over Walmart. Target has a large customer base, a major factor that is used in assessing the strength of a business. It has many services that appeal to its customers hence creating customer loyalty. Unlike Walmart, Target is accepted by most middle-class citizens who are the biggest consumers of their products. Target has more opportunities for growth than Walmart such as the use of new sales channels including the same-day delivery. It is, however, critical to appreciate the fact that Walmart is also a reputable company that is on a rising trend and can only do better to match the standards set by Target.
Real Life Application
Another key competitor for Target is the Amazon.com Company which is an online retailer.
Strengths
One strength that Target enjoys over Amazon.com is the fact that during shopping, one gets a physical and a real time impression of the goods unlike in Amazon where shopping is online, and therefore displays are mainly pictures. Shopping is easier in Target as it only involves picking and paying as compared to in Amazon.com where one needs to make applications and orders before delivery which may take time.
Weaknesses
One major weakness that target faces in relation to Amazon.com are the prices of the commodities. The prices of the goods in Amazon.com are much lower and hence tend to appeal to the customer base. Unlike target, one can do shopping from home in Amazon.com hence an efficient means.
Opportunities
Target has the opportunity of embracing the idea of e-commercing in a bid to counter the competition from their counterparts such as Amazon.com. They can also increase smaller retail shops all over the country to deal with the issue of accessibility a factor that has made Amazon.com a favorite to many buyers.
Threats
The convenience of shopping at home is setting a bad precedent for the business that depends on retail shopping from the stores. The prospect that many young people now prefer online shopping to the conventional or traditional shopping is a major threat to target and other businesses such as Walmart. Due to the lower prices in Amazon, Target will soon face major losses in their bid to match their prices with those of their competitors.
References
Target Looking Better than Walmart for Investors https://www.forbes.com/sites/greatspeculations/2017/01/25/target-looking-better-than-wal-mart-for-investors/#cfbb49642bba
Walmart Vs., target: which retailer is more powerful? http://www.businessinsider.com/walmart-vs-target-graphic-2015-9?IR=T
Target vs. Walmart: Who’s winning The Big Box War? http://www.investopedia.com/articles/active-trading/070715/target-vs-walmart-whos-winning-big-box-war.asp
