Business Strategy

[ Jazlin ] Using the 5 forces analysis, we can observe what are the areas that influence the decision making of the corporation and manager, and how they impact the structure of the business processes & strategies.  When looking at bargaining power of customers, Target is known to sell a variety of products. Although, customers have many different options which include your traditional retailers and online retailers. There are factors like low prices, wide range of products, and a positive reputation that keeps a moderate bargaining strength of customers. In regards to the threat of substitutes: There are many other companies that offer similar products like Target. The factors that limit this threat is how Target offers low prices on a wide range of products. 

The bargaining power of suppliers is low due to the fact that there are no suppliers large enough to hold major influence. Also, Target may have less control over suppliers as brand awareness increases with its size. Even though new entrants may enter and form a business in the retail industry, smaller brands still aren’t much of a challenge for a big and established company like Target. The only threats Target may face are foreign brands that establish enough capital to establish a strong presence in the US in just a short time. In the retail industry, the level of competitive rivalry is high. Target’s main competitors are larger companies like Walmart, Costco and Amazon. There are also influential names in retail and even smaller retail companies that may pose a threat because they offer similar products and maybe for a better price. 

[ Melyana ] Target uses the competitive strategy known as differentiation across the industry. Although the products they sell are averagely priced compared to competitors, they offer rewards and discounts to their customers through their RedCard store credit card or Target Circle loyalty program. In time, the gained rewards can later be used toward other purchases in stores or online. These programs that Target offers separates them from other stores within their industry because it is the RedCard and Target Circle that keeps the customers coming back as loyal customers. 

We plan on furthering our understanding of Target’s operations of the company. This will give us more insight on the business process itself, while also diving deeper into the intricacies of inbound and outbound logistics, manufacturing and sales.

[Olivia] Target uses information systems to support their strategy of differentiation across the industry. Target uses Beacon technology and their loyalty program, Target Circle, to specialize product finds to customers interest, and keep them coming back to shop. The beacon technology is a dynamic process that Target has implemented for their customers, which collects data that allows the company to make specialized recommendations for each customer. Target Circle is the loyalty program that the company offers to customers so that they may earn a percentage of their purchases as rewards. Eventually, these rewards can be used toward other purchases on their website or in their store. Additionally, Target uses their beacon technology to supply customers with relevant in store ads due to the technology's ability to be linked with social media. Based on the customer's activity on social media, customers will receive customized ads from the Target Application. For instance, the Target smartphone app may send customers an alert about trending items on Pinterest that are nearby in Target. These ads go based off if the store has the product in stock and if they are able to honor the deal.

Other than ads, the beacon technology may make product recommendations according to the department that the customer is in. These recommendations will pop up as notifications from the Target app. However, another way to utilize the store's app is to check out their home page or the "Target Run" page. This page will display additional coupons and recommendations based on the customer's location.               

 With this technology and Target's business strategy, the company is saving their customer's money and time by providing relevance and convenience. These systems help customers find products more suited to their likings, while also providing them better prices and discounts to make their shopping experience unique compared to other retailers within the industry. However, this is just the start for Target's beacon technology and application usage. The company is already planning to add extra features that will enhance in-store shoppers experience. Some features include the ability to create a shopping list and the ability to request a team members help in stores.

    Target has partnerships with multiple companies, which offers their shopping experience to an extended audience. Target currently has alliances with Starbucks and CVS Pharmacy. Therefore, customers can enjoy a cup of coffee as they shop and pick up their medications all in one stop. Additionally, the company has recently introduced Ulta Beauty as one of their newest collaborations. As a leading beauty retailer, Ulta Beauty helps Target better reach another group of consumers, these consumers being those more interested in the beauty industry. These partnerships help enhance and differentiate the shopping experience that they offer. Also, their implementation of alliances helps lock in customers.