2.2.0. Purpose of Study
The purpose of this study is to review Target’s strategic plan. This study will determine whether their current strategic plan fits the company’s situation or it does not. In an effort, to make this determination, an external analysis of Target’s industry must also be developed to have a better understanding of the reality of Target’s current situation and standing in their market. This analysis can be extremely helpful for a company when the company is looking into their future. The information that is found in both the external and internal analysis and will provide a strategic analysis of the industry and knowledge over their environment, economic situation and their overall standing as a company.
3.0.0 External Analysis
An external analysis looks into …show more content…
The six segments that are used to help managers identify some potential opportunities and threats are demographic, economic, political/legal, sociocultural, technology, and global segments. A PESTLE analysis is used to obtain theses six segments or factors for Target’s Corporation.
3.1.1 Demographic Segment
The average Target shopper could be described as female, young and chic. Females make up around 60-63 percent of their shoppers. Wal-Mart, Kmart, Kohl’s and Target all have a majority of female shoppers. Target is a discount retail chain and attracts everyone from low-income to the upscale shoppers who love a deal.
3.1.2 Economic Segment
Shoppers are always looking for the best deal. When one of your competitors is Wal-Mart, which is known for their low prices it makes it harder on Target to maintain low prices also. Wal-Mart does what is known as price matching, so if a consumer finds out that another stores is selling a orange for a dollar less then Wal-Mart will match that and sell it for a dollar
The purpose of this study is to review Target’s strategic plan. This study will determine whether their current strategic plan fits the company’s situation or it does not. In an effort, to make this determination, an external analysis of Target’s industry must also be developed to have a better understanding of the reality of Target’s current situation and standing in their market. This analysis can be extremely helpful for a company when the company is looking into their future. The information that is found in both the external and internal analysis and will provide a strategic analysis of the industry and knowledge over their environment, economic situation and their overall standing as a company.
3.0.0 External Analysis
An external analysis looks into …show more content…
The six segments that are used to help managers identify some potential opportunities and threats are demographic, economic, political/legal, sociocultural, technology, and global segments. A PESTLE analysis is used to obtain theses six segments or factors for Target’s Corporation.
3.1.1 Demographic Segment
The average Target shopper could be described as female, young and chic. Females make up around 60-63 percent of their shoppers. Wal-Mart, Kmart, Kohl’s and Target all have a majority of female shoppers. Target is a discount retail chain and attracts everyone from low-income to the upscale shoppers who love a deal.
3.1.2 Economic Segment
Shoppers are always looking for the best deal. When one of your competitors is Wal-Mart, which is known for their low prices it makes it harder on Target to maintain low prices also. Wal-Mart does what is known as price matching, so if a consumer finds out that another stores is selling a orange for a dollar less then Wal-Mart will match that and sell it for a dollar