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Solution Target Swot

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User Generated

Subject

Business

School

Marymount University

Type

Homework

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Option 1: Strengths
Based on your own experiences shopping at Target and Walmart and the research you conducted:
Identify 1-2 strengths Target has in comparison to Walmart. For each strength, explain your
rationale.
Loyal millennial customer base with high net promotor scores (NPS).
o NPS is a measure of customer loyalty and satisfaction
o In a survey of millennial shoppers, Target captured an NPS score of 36.3%, ~3x
higher than the 10% that Walmart captured (Forbes)
Strong relationships with designers offer ability to give customers “great designs at incredible
prices” (Target)
o In 2019, Target celebrated 20 years of designer partnerships
o Designers that Target has partnered with include Zac Posen, Isaac Mizrahi, Lily
Pulitzer, Marimekko, and Jason Wu
o Designer partnerships have differentiated Target as a higher-value, smart-luxury
brand versus Walmart’s
Option 2: Weaknesses
Based on your own experiences shopping at Target and Walmart and the research you conducted:
Identify 1-2 weaknesses Target has in comparison to Walmart. For each weakness, explain
your rationale.
Target is significantly smaller in size versus Walmart, limiting it’s ability to capitalize on
economies of scale
o At the end of FY18, Walmart’s total assets were ~5x larger than Target’s and it’s
market cap was ~6.5x larger than Target’s (YCharts)
Target also lags behind Walmart in its product offering, both in breadth and pricing.
o Walmart supercenters market themselves as the lowest-price provider of all
household necessities, often packing more items into their large footprint stores.
Option 3: Opportunities
Based on your own experiences shopping at Target and Walmart and the research you conducted:
Identify 1-2 possible opportunities Target has to be more competitive with Walmart. For each
opportunity, explain your rationale.
Target can leverage its City Target brand (i.e., smaller Target stores in urban areas) to win
customers in urban areas.
o Given the trend of urbanization, Target could capitalize on growth of urban
customers
Target has the opportunity to leverage its brand to compete with Walmart in e-commerce
o A large portion of millennials shop for household items online; Target’s brand loyalty
among millennials position it to compete in e-commerce
Option 4: Threats
Based on your own experiences shopping at Target and Walmart and the research you conducted:

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Option 1: Strengths Based on your own experiences shopping at Target and Walmart and the research you conducted: • • • Identify 1-2 strengths Target has in comparison to Walmart. For each strength, explain your rationale. Loyal millennial customer base with high net promotor scores (NPS). o NPS is a measure of customer loyalty and satisfaction o In a survey of millennial shoppers, Target captured an NPS score of 36.3%, ~3x higher than the 10% that Walmart captured (Forbes) Strong relationships with designers offer ability to give customers “great designs at incredible prices” (Targ ...
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Anonymous
Awesome! Perfect study aid.

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