Target SWOT Analysis
“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and
the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely
used technique through which managers create a quick overview of a company’s
strategic situation. The technique is based on the assumption that an effective strategy
derives from a sound “fit” between a firm’s internal resources (strengths and
weaknesses) and its external situation (opportunities and threats). A good fit maximizes
a firm’s strengths and opportunities and minimizes its weaknesses and threats.
Accurately applied, this simple assumption has powerful implications for the design of a
successful strategy.”
Target
Target Corporation (Target) is a retailer which operates large format
general merchandise and food discount stores. Being one of the leading retailers
in the US, Target enjoys a strong market position which further enhances its
market penetration opportunities and adds to its bargaining power. However, a
prolonged economic slowdown in the US would impact the consumer’s
discretionary spending capacity and in turn affect the demand for Target’s
products adversely.
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Target SWOT Analysis
Strengths, Weaknesses, Opportunities and Threats (SWOT)
Location of Factor
TYPE OF FACTOR
Favorable
Internal
Strengths
Unfavorable
Weaknesses
¾ Strong brand value
¾ Product recalls
¾ Global sourcing
¾ Declining profits
capabilities
management (GWM)
¾ Geographic
concentration
¾ Leading market
position
External
Opportunities
¾ Store expansion
¾ Demand for private
label products
¾ Demand for organic
Threats
¾ Economic
slowdown in the US
¾ Increased minimum
wages in the US
¾ Intense competition
food
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