Target's Internal Factors: Corporate Business Strategy Positioned for Success

Target rapidly became such a well-known brand and name, that the corporation, formerly known as Dayton-Hudson adopted it as its larger name. The well-known name has become an icon for stylish, fun and affordable shopping. Though the company has several other strengths, unfortunately the company's weaknesses are of significant importance and lessen the weighted score on the internal factor evaluation matrix.

First, Target's commitment to maintain its underperforming divisions, Mervyn's and Marshall Fields, demonstrates less than astute business acumen. Getting rid of this dead weight could significantly reduce Target's costs and free up resources to invest in its more successful and profitable business operations. Secondly, and most significantly, Target's failure to enter global markets, though patriotic in theory is limiting the scope of operations and the level of competition that Target is able to achieve.

Next, the company lacks a formal vision and mission statement. Though the company has been successful in creating an effective organizational culture despite this, the weakness begs the question: how much more could they achieved with a clearly defined vision and mission with outlined goals? Finally, though the company strives to achieve the image of a socially responsible company that "gives back," it is possible that the company is giving back at the expense of the shareholders. The company's buying practices, if not so "socially responsible" could contribute substantially to it's competitiveness. Better cost advantages could be taken which could impact the bottom line favorably.

Target's strengths are very pronounced, and the company has been very good at distinguishing itself from the competition through its competitive advantage. The bulk of Target's strengths lies in the intangible areas of image, brand and style. Target has employed genius marketing tactics and advertising campaigns that have in essence, made it "cool" to shop at a discount store. Target's well-known brand, paired with its hip stores, have given the company an image that beats its major competitors hands-down in the area of style. Target's alignment with chic, upscale brands such as Starbucks, Yahoo, Isaac Mizrahi, Cynthia Rowley and others contribute to this phenomenon of style.

A good strategy recommendation for Target would begin with focusing on its weaknesses. Target has worked very hard at defining its distinct competencies. Because of that, the company's strengths stand on their own. Now the company must overcome their weaknesses in order to gain more ground against it's biggest competitor - Walmart. The quickest and easiest way to start, in my humble opinion, is for Target to write a vision and mission statement. The company should include a statement in there about maximizing it's distinctive competencies and becoming a serious global competitive threat to Walmart. The company should then divest itself of its dying divisions and put them out of their misery. This would possibly free up some capital for investment into new global markets, for example opening Target stores in China and India.