Target Strategic Outline

I. Mission Statement:

II. External Environmental Analysis

a. Remote environment пїЅ these are the factors, which affect all businesses, and frequently, neither the business nor the industry has any control over them пїЅ examples:

i. Entry barriers

ii. Social

iii. Political

iv. Technological

v. Ecological factors

vi. Economic factors:

The economy has a major influence over the retail industry. TargetпїЅs market has a very broad scope. When the economy affects the purchasing ability of its customer base, customers turn to less expensive commodities offered by discount retailers.

b. Industry environment:

i. Entry barriers

A. Economies of scale: Target can compete well against county general stores, surplus and salvage stores, Army and Navy goods stores, warehouse club stores, and catalog showroom stores because they have a significant cost advantage over any new rival.

B. Product Differentiation: Target creates high entry barriers through their high levels of advertising and promotion (Essentials of Strategic Management)