INDUSTRY FORCES
*Creative Commons Photo
Competitors
Their largest competitor is WalMart. In recent history, Target has had problems convincing consumers that their prices rival WalMart’s, but have made efforts to change this through adverting.
- Walmart
- K-Mart
Their largest competitor is WalMart. In recent history, Target has had problems convincing consumers that their prices rival WalMart’s, but have made efforts to change this through adverting.
New Entrants
There have been few new entrants in any US market in recent years, given the recent economic situation.
However, there have been a few. Advances in technology mean new products and well as new competitors. Television advances, such as Blu-Ray, internet-capable TVs, and HD mean that consumers are buying products that are compatible. However, that also means that they can watch show on-line on the TV (or computer) instead of buying it. E-Readers such as the Kindle are for sale at Target, but their purchase means that consumers are more likely to buy a digital book from Amazon.com than the hard copy at Target.
Substitutes
-Pick ‘n Save -Trader Joe’s -Sendik’s -Kroger -PeaPod.com -Boutique -Fast-food -Delivery
- JC Penny’s - Kohl’s -WalMart -Boston Store -J.Jill -Delia’s -PacSun -Overstock.com
-Sally’s Beauty Supply -Department Stores -Salons - Amazon.com -Sephora -Ebay -Boutique -Footlocker |
-Best Buy -Radio Shack -Amazon.com -Staples -Office Depot -Boutique (cell phone carriers, Apple)
-WalMart -FYE -Used (Half Price Books) -Library -Blockbuster -Netflix -Red Box
-Menards -IKEA -Ashley Furniture -Sherwin-Williams -Babies-R-Us -Toys-R-Us -Payless |
*Creative Commons Photo
Since Targets offers at least a small selection of everything, their substitutes are every retailer and fast food option in the US or online. Electronics can be bought from the manufacturer, or stores like WalMart, Circuit City, Best Buy, Office Depot. Similarly-priced clothing can be found at mid-range department stores such as Kohl’s and JC Penny’s, but any clothing store or boutique would count as a substitute. Their smaller departments, like the books, crafts, and toy sections, have stores that specialize in those items. Additionally, you can buy anything online
Essentially, there is nothing that you can only buy at Target, so they must focus offering better quality for the same or lower prices.
Essentially, there is nothing that you can only buy at Target, so they must focus offering better quality for the same or lower prices.
Suppliers
Target does not manufacture any of the products they sell, so the quality of their products depends on their relationship with their suppliers. This includes the brand-name manufacturers, who sell Target their products and whole-sale prices and provide some of the products in Target’s private-label brands. It also include that designers that Target works with; recently, they have received publicity for offering a line of products from Liberty, a high-end British department store. A great deal of their revenue comes form seasonal stock, which means that they must have an appropriate product for each season, or present their customers with bare shelves.
As part of their stocking process, they utilize 34 storage facilities throughout the country to receive products, hold them as needed, and send them to stores. Each store has limited space for surplus, so deliveries must run smoothly.
Target has introduced the REDcard, a private credit card, which it plans to use in place of the Target VISA card. VISA cards are no longer being offered to customers, although Target continues to accepts them and all major credit cards.
Stakeholders
- Stockholders
- Designers
- Suppliers
