Target
In the Retail
(Department & Discount) Industry
Target Corporation (TGT), traditionally an American leader in the retail industry, is faced with forces of a maturing industry. From outside the industry, current competitors, potential competitors, and global industries forces are putting pressure on their core business, which is seen as too complacent in an opportunistic environment. They need to make changes to adapt to these changing conditions. I recommend that TGT pursue a strategy called ?Hitting our Target- International Expansion? which recognizes these macro conditions- industry saturation and move towards prime foreign direct investment- while at the same time maintaining the same operation domestically. It will rely more heavily on taking advantage of its cash cow, rely more on Store leadership and multi-global strategies rather than Product/Store mix and differentiation strategies around its less established, high profit international regions.
Background
The Retail (Department & Discount) Industry is in the mature stage of the industry life cycle (See exhibit 1). As such, companies are successful based on their ability to expand, advertise, and differentiate their style of merchandise and service. This can be accomplished through taking advantage of economies of scale, cost leadership, differentiation, and focus strategies.
Exhibit 1
While there are many
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