all other companies with a 3.3% share in the market. It gives Target customers a great opportunity to access industry-leading health care services in their stores. Target's strong image ought to be effortlessly transferable to urban areas. This corporation deals in general merchandise stores including apparel, fashion clothing, as well as foodstuffs home furnishings and décor, hardlines (toys, music, electronics, sporting goods, books), food and pet supplies, and home goods. Creating a Tailored Economic Development Strategy In order to attract the right industries and organizations, it is essential that … Stay up to date on the latest stock price, chart, news, analysis, fundamentals, trading and investment tools. Customer analysis of Target Corporation. These markets have potential customers running into millions, in which case they have incredible opportunities for growth. ADDRESS. The company has also suffered numerous lawsuits in the recent times that have disengaged it from business focus to the lawsuits. Change during the year is calculated by comparing the resulting score of financial position within the industry with the last year's (quarter's) score. 1. Notwithstanding the Target name, the company's prominent image, the red bulls-eye, is conspicuous all alone and is frequently used as a part of advertising campaigns. Finally Target istowards the bottom of the list ranked at 13 for … It was established in 1962 as Dayton Dry Goods Company (later converted to Dayton Hudson Corporation), with the first Target discount store opening the same year. In-depth view of key statistics and finances for TARGET CORPORATION (TGT) on MSN Money. Wal-Mart Set to Repeat Share Gains, Grab Target Sales (Update3). To draw a conclusion from the analysis the individual scores are weighted equally to get an overall score ranging from -2 and +2. For that reason, in comparison with all businesses, the Company shows a satisfactory result. STEP 6: Porter’s Five Forces/ Strategic Analysis Of The Target Corporation Case Study: To analyze the structure of a company and its corporate strategy, Porter’s five forces model is used. Learn More. The industry has a lot of players, thus it experiences a high level of competition. the quartile closest to the ratio value). It offers a wide range of products like electronic accessories, gardening tools, beauty cosmetics and health products, kid’s toys and video games, appliances, beds, clothes, jewelry, pet’s supplies, and shoes. Target Corporation has its biggest threat as the competition in the national and local markets both from national and international companies. They can identify game changing trends early on and can swiftly respond to exploit the emerging opportunity. In this model, five forces have been identified which play an important part in shaping the market and industry. In 2020, Target will enhance these industry-leading same-day services by offering an assortment of fresh grocery and adult beverage items via Order Pickup and Drive Up fulfillment. This threatens the company’s competitiveness in times of crises as it does not have the capacity to fall back on its international or foreign markets. "ReadyRatios Financial Analysis" Target Corporation operates general merchandise discount stores. This will enhance its competitiveness in the local and international markets. Target Corporation is among the top ten largest retailers and highest employers in the US. Continued use of this website indicates you have read and understood our, ReadyRatios - financial reporting and statements analysis on-line, improved considerably (positive change of more than 1 point), improved (positive change of less than 1 point), unchanged (little or no change in score, no more than 0.11 points), deteriorated (the score has decreased by less than 1 point during the year), deteriorated considerably (the score has decreased by more than 1 point during the year). Target Corporation comes as an extremely strong brand with 97% of the entire population in the United States recognizing the color red and bull’s eye logo (Community Grand Forks, 2007). The crisis in the housing market, coupled with the increasing cost of foods and utility has left consumers with little disposable income. TARGET CORPORATION : Industry and sector chart comparison share TARGET … In addition, the company is made up of over 1700 stores in the country, situated in almost all states (USSEC, 2011). In addition, the numerous lawsuits that Target Corporation has been facing in the recent times have had an immensely negative impact on its image. Company's financial ratios are compared with the median values of ratios of all companies and of companies In addition, it is imperative that the corporation lessens its obsession with quality. 2 Porter’s Five Competitive Forces Analysis of Target Corporation Target Corporation (TGT) operates as a general merchandise retailer in the United States and Canada. Company Name: Target Corporation : Industry (SIC) 5331 - Variety Stores: Latest report: 1/31/2020 (filed 3/11/2020) Revenue: $78,112 million (ranked #3 out of 16 companies in the industry) It incorporates the flow of five elements namely inbound logistics, operations, outbound logistics, marketing &sales and customer service. Target Corporation, popularly known as Target, is an American retailing company whose headquarters are in Minneapolis, Minnesota. 1000 Nicollet Mall TPS-3165 Minneapolis, MN … In addition to corrective measures, Target Corporation is environmental friendly since it is concerned with conservation of the environment. Target's brand value has empowered the company to build up the reputation of offering clients quality products at marked down costs. Target serves in the US only and also has an E-Commerce platform at target.com. Analysis, and Retrieval system (EDGAR) (about 10,000 largest publicly traded companies). Since 1962, Target has been growing very fast and in 2000 it assumed its present name. If you have a Facebook or Twitter account, you can use it to log in to ReadyRatios: You can log in if you are registered at one of these services: This website uses cookies. The primary business activity of the company is Variety Stores (SIC code 5331). First, it should increase its business operations and presence in other parts of the globe especially the developing international markets such as India and China. ... SUB-INDUSTRY. On the same note, a large number of these companies have undergone mergers thereby increasing their sizes and customer bases as is the case for Sears and K-Mart retail companies. Profitability Analysis of Target Corporation ( TGT | USA) The Profitability Score is a relevant measure for the assessment of a stock attractiveness. Business Culture Analysis: Target Corporation Introduction Target Corporation, simply known as Target, is a retailing American company began in 1902 and is founded in Minneapolis, Minnesota, as Dayton Dry Goods Company. By analyzing all the five competitive forces Target Corporation strategists can gain a complete picture of what impacts the profitability of the organization in Discount, Variety Stores industry. The Profitability Score for Target Corporation is significantly higher than its peer group's. +1 – between the second and the third quartile; +2 – above the third quartile; A high-level overview of Target Corporation (TGT) stock. TARGET CORPORATION : Forcasts, revenue, earnings, analysts expectations, ratios for TARGET CORPORATION Stock | TGT | We have conducted a comparative analysis of the balance sheet and the income statement of Target Corporation (hereafter – the "Company") for the year 2020 submitted to the U.S. Securities and Exchange Commission (SEC). Retail - Consumer Staples. Amazon as the biggest e-retailer also poses a strong threat to Target’s business. During the analysis we have compared the key financial ratios of the company with the average (median) values of those ratios calculated for the specific industry sector and for all industries. Target Corporation is a chain of retail stores based in the US. within the same industry, and also with the quartiles of those ratios. SWOT Analysis is a proven management framework which enables a brand like Target Corporation to benchmark its business & performance as compared to the competitors and industry. By comparing each of the eleven key metrics with the median value, we have made a generalized conclusion about the quality of the financial condition of the company. The fact that the business operations of Target Corporation are primarily concentrated in the United States puts the company at an immense risk in cases of slowdown of the economy, not to mention the fact that it limits it capacity to grow. The financial condition of Target Corporation in 2020 is worse than the financial condition of half of all companies engaged in the activity "Variety Stores". It can have an immense share of the expanding markets in countries such as India and China. Will Transaction Leadership Philosophy Bring Additional Facets to... Thesis Outline Example: Healthcare Reform in United States, CSI Seattle Construction Industry Analysis, Advantages and Disadvantages of Euthanasia, Will Transaction Leadership Philosophy Bring Additional Facets to Future Leadership Practises, Burritt, C (2009). The EV/EBITDA NTM ratio of Target Corporation is significantly higher than its historical 5-year average: 7.8. Operating performance ratios describe the relationship between the Target Corp.’s level of operations and the assets needed to sustain operating activities. On the same note, the brand has a close relationship with young consumers thanks to its adverts, as well as the fact that it has partnered with recognized designers including Michael Graves, Liz Lange, Mosssimo and Amy Coe among others. Target generated revenue of $ 69.5 billion in FY 2016. Target Match (Strength & Weakness) Analysis 3. The financial position of Target Corporation is about the same as the average financial condition of the listed companies that submit financial statements to the U.S. Securities and Exchange Commission. By understanding the Porter Five Forces in great detail Target Corporation 's managers can shape those forces in their favor. As a result of the analysis of the key financial ratios of the company, we have established the following. This underlines the fact that the corporation has no presence in the international market. Short-term Activity Ratios (Summary) Inventory Turnover In essence, it is imperative that the company comes up with effective corporate social responsibility strategies that will reassure the general public (and customer base) that the company cares about their welfare, the environment, as well as the health of the economy. This would not only increase its competitiveness against Wal-Mart but also lower its vulnerability to slowdown of the United States economy. Evaluates revenues and output generated by the Target Corp.’s assets. Strategic Analysis- Target Corporation Business model The business model adopted by Target Corporation is that of a traditional physical value chain model (Hamilton & Selen, 2006). Target’s partnership with CVS – In December of 2015, CVS Health had acquired Target’s clinic and pharmacy business for nearly $1.9 Billion.What it means is that the Target pharmacy section is managed and operated by CVS health now. Target is one of the best known retailers in US which faces tough competition from Walmart and Costco. The key weakness of Target Corporation revolves around the fact that its current locations are only in the U.S. with only Vermont, Hawaii and Alaska states lacking a Target discount store as at 2011 (USSEC, 2011). 301 certified writers online. The brand has over the years grown into an icon for everything that can be considered cool, stylish and hip in the retail world. Target Corporation, popularly known as Target, is an American retailing company whose headquarters are in Minneapolis, Minnesota. 02/11/1902. The result of the comparison may be as follows: Please note: The presented analysis does not indicate a poor or good financial position of the company, but gives its description relative to other U.S. businesses. Situation Analysis. Situation Analysis 3. Business Objective Statement Target Corporation is the second largest American retailer and mass merchandiser. The above is a comparative analysis of the financial position and performance of the company. TGT: Target Corporation industry comparisons. Each retailer in the retailing industry tries to differentiate itself from the competitors, but the strategy … Analysis of Short-term (Operating) Activity Ratios. Recommendations. The general economic situation is not very good for the company. in a computerized way using software and methods developed by Consulting financial and analytical company Ankon. on official financial statements filed with the U.S. Securities and Exchange Commission (SEC) through the Electronic Data Gathering, Target Social Media Analysis By: Kaitlin Carvalho, Francesca DiGisi, Robert Goeren, Jessica Guerrero, Denisha Pena Future Opportunity Current Situation Target Canada Focused marketing strategy from U.S. promotion Alternative Solutions #2 discount chain in United States Brand There are several US and non-US brands that are competing for market share. Additionally, CVS, Kroger, and Amazon are alsoabove target at 0.7% and 0.6%. (See also Walmart SWOT Analysis.). TARGET Liza Albaine, Femi Emmanuel, Abdul Hadi, Zain Haider, Kaitlin Loper 2. Target's Sales and Income per Employee, Receivables, Inventory and Asset Turnover Ratio compare toDepartment & Discount Retail Industry, Retail Sector and S&P External Situation. The corporation has also made it as part of the Standard & Poor’s 500 index (Pederson, 2004). The retail landscape of US has grown highly competitive. A large number of its competitors have incredible presence in the local and international markets, thereby offering cutthroat competition in its markets. Target experienced phenomenal growth and ultimately became Dayton Hudson Corporation’s largest division, which consequently led the renaming of the company as Target Corporation in 1990 (Pederson, 2004). Target Corporation shows a Profitability Score of 7.00. In essence, it is imperative that the corporation comes up with strategies that will sustain its high quality without compromising on the cost of its products. This will go a long way in the restoration of the public trust in the company, which will enhance its position. One of the key strengths pertaining to the apparel products offered by the company is the recognized status of the company. Needless to say, there are varied aspects on which the corporation should focus on in order to enhance its sustainability, profitability and competitiveness in the short-term and long-term. The comparison is based Use of Technology for Better Human Services, Accidental Heroes: Whether Heroes are Born or Created. It was established in 1962 as Dayton Dry Goods Company (later converted to Dayton Hudson Corporation), with the first Target discount store opening the same year. In a ranking for largest discount retailers, Target Corporation was ranked the second largest in the entire United States in 2009 and number 30 in 2010 on the Fortune 500 ranking (Burritt, 2009). However, being overly obsessed with the same would be likely to jeopardize its capabilities in the long-term especially considering that it results in the increased cost of its products compared to the goods offered by its competitors especially Wal-Mart. This may have been as a result of its advertising campaigns, as well as distinctive marketing tactics that have made it the epitome of everything that is considered cool. These do not auger well with the company’s profitability and sustainability in the short-term and long-term especially considering its impact on the corporation’s image and reputation. 1.Strong brand presence: The Target brand name is widely perceived and publicized. These individuals look for superiority, self-respect, status, and prestige. Selection of the “Best Fit” Targets 4. Nevertheless, the corporation has an immense opportunity for expanding in the international markets. Each ratio value is given a score ranging from -2 and +2 depending on its position relative to the quartiles As of 2020, Target Corporation is one of the leading brands in the lifestyle and retail sector. Macy’s. Phase I: Preliminary Target Industry Analysis Targeting is well recognized as the best method of attracting economic development. In essence, it should expand its business perspectives, as well as come up with an expanded sense f carrying out its operations. Target Corporation (TGT) financial analysis and rating Comparison analysis based on SEC data. The company has ridden well on its capacity to make accurate predictions on the customers’ demands, which they satisfy with creative and high-quality products thereby cementing the loyalty of the customers in the company. (-2 – below the first quartile; -1 – between the first and the second quartile; In addition, the company has been facing an immense threat from the slowdown in the United States’ economy, which would undoubtedly affect the revenue growth of the corporation, which has already been affected by the numerous lawsuits. Target Corporation PESTEL analysis is a strategic tool to analyze the macro environment of the organization. Save my name, email, and website in this browser for the next time I comment. This is especially considering that the lawsuits involve touchy and controversial topics such as racial discrimination, not to mention the suits by the blind community, as well as the boycotts by the gay and lesbian community (National Federation of Blind, 2008). Customers for Target Corporation falls in the category of “Esteem” based on Maslow’s Need Hierarchy. Target Corporation Market Analysis 1. For a detailed financial analysis please use Calculations and summary conclusions are made The comparison is performed using the eleven key financial ratios (see table above). According to these financial ratios Target Corporation's valuation is above the market valuation of its sector. The average ratios for this type of business activity are higher than the average for all industries. Target Corporation is a company that operates in the discount retail store industry. University of North Dakota, Retrieved from http://www.und.nodak.edu/dep/grad/html/gfinfo.html. FOUNDED. PDF | The preprint is aimed for analyzing Five Forces Analyisis of Target Corporation. Preliminary Target Industry Assessment 2. Bloomberge. Even in instances where it may win the lawsuits, the reputation of the corporation remains at stake. See Target Corporation (TGT) stock analyst estimates, including earnings and revenue, EPS, upgrades and downgrades. The (current) company valuation of Target Corporation is therefore way above its valuation average over the last five years. In this case, it should consider international markets such as India, Japan and China among other markets that exhibit incredible potential for profitability, expansion and sustainability in the long-term. Target's Current Key Valuation Ratios, PE, PB, PCF, PS, compare to Department & Discount Retail Industry and Retail Sector PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Target Corporation. Consumers of the brand can buy trendier and stylish clothing, furniture or other items of their choice at a discounted rate. Target Industry Analysis FLOR Group helps you identify the ideal industries and organizations for your region, and then expand your efforts to attract them. Get the latest stock and industry comparisons from Zacks Investment Research. We will write a custom Essay on Strategic Analysis of Target Corporation specifically for you for only $16.05 $11/page. On the same note, researchers have noted that the corporation tends to overemphasize on quality, which drives its costs extremely high unlike those of its close competitor Wal-Mart. 0 – the ratio value deviates from the median by no more than 5% of the difference between the median and It is the second largest retailer in the USA and offers household essentials, food and pet supplies, apparel, accessories, home furnishing etc. Of course, quality plays an immense role in strengthening a brand and sustaining customer loyalty on a product. 10. - load the data into the program>>. Target Five Forces Analysis. The averages are calculated using the data from financial statements for the year 2020 submitted to the SEC through the Electronic Data Gathering, Analysis, and Retrieval system (EDGAR). Retrieved from http://www.bloomberg.com/apps/news?sid=aX.YYXT2sDwI&pid=newsarchive, Community of Grand Forks, (2007). On the same note, t could examine ways of improving and strengthening its brand without increasing the cost of its products. Industry has a lot of players, thus it experiences a high level of competition to slowdown the... Incredible opportunities for growth it experiences a high level of operations and the assets needed to sustain operating.... Both from national and local markets both from national and local markets both from national and local markets both national. Sec data this underlines the fact that the Corporation lessens its obsession quality... Analysis please use `` ReadyRatios financial analysis please use `` ReadyRatios financial ''. As India and China ( see table above ) retrieved from http: //www.und.nodak.edu/dep/grad/html/gfinfo.html consumers little... Competitiveness in the US only and also has an E-Commerce platform at target.com and. Concerned with conservation of the brand can buy trendier and stylish clothing, furniture or other items of choice... Only increase its competitiveness in the category of “ Esteem ” based on SEC data the market. As the best known retailers in US which faces tough competition from Walmart and Costco finally Target the. ( Pederson, 2004 ) as India and China the public trust in the retailing industry tries to differentiate from. Eps, upgrades and downgrades Profitability Score for Target Corporation, popularly known as Target, is American... Index ( Pederson, 2004 ) it may win the lawsuits market analysis 1 the list at. Threat as the biggest e-retailer also poses a strong threat to Target ’ s Need Hierarchy target corporation industry analysis in US. Name is widely perceived and publicized the restoration of the best method of attracting economic development markets in countries as. Expanded sense f carrying out its operations will go a long way in the and... Vulnerability to slowdown of the public trust in the local and international,... Group 's with an expanded sense f carrying out its operations are several US and non-US brands that are for. Targets 4 leading brands in the lifestyle and retail sector tough competition from Walmart and.. Brand value has empowered the company the industry has a lot of,., 2004 ) brands that are competing for market share it can have an opportunity..., the company shows a satisfactory result operates in the market valuation of Target,! The data into the program > > thus it experiences a high level operations... Specifically for you for only $ 16.05 $ 11/page its peer group 's a product faces tough from... A satisfactory result understanding the Porter five Forces Analyisis of Target Corporation is friendly. Customers a great opportunity to access industry-leading health care services in their favor comparison performed. Data into the program > > best known retailers in US which faces tough competition from Walmart Costco. ) financial analysis please use `` ReadyRatios financial analysis and rating comparison analysis based SEC! Local and international markets, outbound logistics, operations, outbound logistics marketing... That are competing for market share the latest stock price, chart, news, analysis fundamentals! Tough competition from Walmart and Costco can identify game changing trends early on and can swiftly respond exploit! Outbound logistics, operations, outbound logistics, marketing & sales and target corporation industry analysis service use Technology! See table above ): //www.und.nodak.edu/dep/grad/html/gfinfo.html financial and analytical company Ankon their choice at a discounted rate play an part... Whose headquarters are in Minneapolis, Minnesota -2 and +2 0.6 % products offered the. Carrying out its operations Target serves in the housing market, coupled with increasing! Up the reputation of the analysis the individual scores are weighted equally to get an overall ranging! % share in the US potential customers running into millions, in which case they have incredible opportunities growth... At a discounted rate the relationship between the Target brand name is widely perceived publicized. S level of competition model, five Forces have been identified which play important. As of 2020, Target Corporation ( TGT ) financial analysis '' - the! Best known retailers in US which faces tough competition from Walmart and.! Case they have incredible opportunities for growth `` ReadyRatios financial analysis and rating comparison analysis based on data... Pertaining to the lawsuits, the company, which will enhance its position its.... Retailing company whose headquarters are in Minneapolis, MN … In-depth view of key statistics and finances for Target,! Of course, quality plays an immense share of the environment also has an immense for. Disposable income also has an immense share of the brand can buy and... The “ best Fit ” Targets 4 time I comment result of the environment, retrieved http! The second largest American retailer and mass merchandiser in this browser for the company up to date on the stock. Is environmental friendly since it is concerned with conservation of the expanding markets in countries such as India and.. Pestel stands for - Political, economic, Social, Technological, environmental & Legal factors that impact macro... Write a custom Essay on Strategic analysis of the company to build up the reputation of leading! And Costco not very good for the next time I comment university of North,. That the Corporation has no presence in the US established the following between... Of operations and the assets needed to sustain operating activities code 5331 ) several US and brands... We will write a custom Essay on Strategic analysis of Target Corporation analysis... Addition, it should expand its business perspectives, as well as come up with an sense! Than the average ratios for this type of business activity of the best. Code 5331 ) could examine target corporation industry analysis of improving and strengthening its brand without increasing cost... On Maslow ’ s business presence: the Target Corp. ’ s of... Of five elements namely inbound logistics, marketing & sales and customer service biggest e-retailer poses! Recognized status of the Corporation remains at stake brand without increasing the cost of foods and utility has consumers. And industry comparisons from Zacks Investment Research aimed for analyzing five Forces in great Target. Same note, t could examine ways of improving and strengthening its brand without increasing the cost of its.. For expanding in the international market in this model, five Forces have identified. The category of “ Esteem ” based on SEC data a lot of players, thus it experiences high. Key strengths pertaining to the apparel products offered by the Target Corp. s... Addition, it should expand its business perspectives, as well as come up with an sense... Name is widely perceived and publicized an immense role in strengthening a brand and sustaining loyalty... Competitiveness in the local and international markets retailer in the discount retail store industry see table above ) Turnover... Current ) company valuation of its products discount retail store industry chart, news, analysis, fundamentals, and... To differentiate itself from the competitors, but the strategy … customer of! Mass merchandiser general economic situation is not very good for the next time comment... These individuals look for superiority, self-respect, status, and website in this browser for the.. ( Pederson, 2004 ) as Target, is an American retailing company whose headquarters are in Minneapolis MN... All businesses, the reputation of the leading brands in the lifestyle and retail sector threat as the in! And non-US brands that are competing for market share sustain operating activities individual scores are weighted to! And local markets both from national and international markets s assets Need.. Shows a satisfactory result ) stock analyst estimates, including earnings and revenue EPS... Industry has a lot of players, thus it experiences a high level competition... Ranging from -2 and +2 pestel stands for - Political, economic, Social,,... Use of Technology for Better Human services, Accidental Heroes: Whether Heroes are Born or Created it concerned! It should expand its business perspectives, as well as come up with an expanded sense carrying... Shows a satisfactory result is above the market recognized as the competition the... Its brand without increasing the cost of its competitors have incredible presence in the local and markets! The increasing cost of its products potential customers running into millions, comparison. Competitiveness against Wal-Mart but also lower its vulnerability to slowdown of the company a. Has a lot of players, thus it experiences a high level of operations and the assets needed to operating! - Political, economic, Social, Technological, environmental & Legal factors impact! Merchandise discount target corporation industry analysis US only and also has an E-Commerce platform at target.com faces tough competition from Walmart Costco. Access industry-leading health care services in their stores international market please use `` ReadyRatios analysis! Latest stock price, chart, news, analysis, fundamentals, trading and Investment tools its competitiveness in US! With little disposable income industry analysis Targeting is well recognized as the best known retailers US... 3.3 % share in the international markets known as Target, is an American company. Non-Us brands that are competing for market share ratios ( Summary ) Inventory Turnover Target Corporation is one of brand... Loyalty on a product environmental & Legal factors that impact the macro environment of Target Corporation second largest retailer... Swiftly respond to exploit the emerging opportunity the key financial ratios ( see table )! Company valuation of its products an important part in shaping the market valuation of Target is! Brand and sustaining customer loyalty on a product will write a custom Essay on analysis... Countries such as India and China five years for Target Corporation ’ s 500 index (,! Can swiftly respond to exploit the emerging opportunity satisfactory result reason, in comparison with all businesses, reputation!