In 2020, Target will enhance these industry-leading same-day services by offering an assortment of fresh grocery and adult beverage items via Order Pickup and Drive Up fulfillment. It offers a wide range of products like electronic accessories, gardening tools, beauty cosmetics and health products, kid’s toys and video games, appliances, beds, clothes, jewelry, pet’s supplies, and shoes. In addition to corrective measures, Target Corporation is environmental friendly since it is concerned with conservation of the environment. Stay up to date on the latest stock price, chart, news, analysis, fundamentals, trading and investment tools. It was established in 1962 as Dayton Dry Goods Company (later converted to Dayton Hudson Corporation), with the first Target discount store opening the same year. Will Transaction Leadership Philosophy Bring Additional Facets to... Thesis Outline Example: Healthcare Reform in United States, CSI Seattle Construction Industry Analysis, Advantages and Disadvantages of Euthanasia, Will Transaction Leadership Philosophy Bring Additional Facets to Future Leadership Practises, Burritt, C (2009). the quartile closest to the ratio value). It can have an immense share of the expanding markets in countries such as India and China. Target serves in the US only and also has an E-Commerce platform at target.com. The result of the comparison may be as follows: Please note: The presented analysis does not indicate a poor or good financial position of the company, but gives its description relative to other U.S. businesses. These markets have potential customers running into millions, in which case they have incredible opportunities for growth. Target's Current Key Valuation Ratios, PE, PB, PCF, PS, compare to Department & Discount Retail Industry and Retail Sector Situation Analysis. Target Corporation is a company that operates in the discount retail store industry. To draw a conclusion from the analysis the individual scores are weighted equally to get an overall score ranging from -2 and +2. The primary business activity of the company is Variety Stores (SIC code 5331). On the same note, the brand has a close relationship with young consumers thanks to its adverts, as well as the fact that it has partnered with recognized designers including Michael Graves, Liz Lange, Mosssimo and Amy Coe among others. Target Match (Strength & Weakness) Analysis 3. The company has ridden well on its capacity to make accurate predictions on the customers’ demands, which they satisfy with creative and high-quality products thereby cementing the loyalty of the customers in the company. Business Culture Analysis: Target Corporation Introduction Target Corporation, simply known as Target, is a retailing American company began in 1902 and is founded in Minneapolis, Minnesota, as Dayton Dry Goods Company. It gives Target customers a great opportunity to access industry-leading health care services in their stores. Retail - Consumer Staples. ADDRESS. Customers for Target Corporation falls in the category of “Esteem” based on Maslow’s Need Hierarchy. First, it should increase its business operations and presence in other parts of the globe especially the developing international markets such as India and China. STEP 6: Porter’s Five Forces/ Strategic Analysis Of The Target Corporation Case Study: To analyze the structure of a company and its corporate strategy, Porter’s five forces model is used. 1000 Nicollet Mall TPS-3165 Minneapolis, MN … Bloomberge. Situation Analysis 3. Business Objective Statement Target Corporation is the second largest American retailer and mass merchandiser. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Target Corporation. The general economic situation is not very good for the company. Target experienced phenomenal growth and ultimately became Dayton Hudson Corporation’s largest division, which consequently led the renaming of the company as Target Corporation in 1990 (Pederson, 2004). Profitability Analysis of Target Corporation ( TGT | USA) The Profitability Score is a relevant measure for the assessment of a stock attractiveness. This would not only increase its competitiveness against Wal-Mart but also lower its vulnerability to slowdown of the United States economy. On the same note, researchers have noted that the corporation tends to overemphasize on quality, which drives its costs extremely high unlike those of its close competitor Wal-Mart. 301 certified writers online. During the analysis we have compared the key financial ratios of the company with the average (median) values of those ratios calculated for the specific industry sector and for all industries. As of 2020, Target Corporation is one of the leading brands in the lifestyle and retail sector. (-2 – below the first quartile; -1 – between the first and the second quartile; We have conducted a comparative analysis of the balance sheet and the income statement of Target Corporation (hereafter – the "Company") for the year 2020 submitted to the U.S. Securities and Exchange Commission (SEC). Target Corporation shows a Profitability Score of 7.00. Target Corporation comes as an extremely strong brand with 97% of the entire population in the United States recognizing the color red and bull’s eye logo (Community Grand Forks, 2007). "ReadyRatios Financial Analysis" There are several US and non-US brands that are competing for market share. Nevertheless, the corporation has an immense opportunity for expanding in the international markets. Analysis, and Retrieval system (EDGAR) (about 10,000 largest publicly traded companies). Target's Sales and Income per Employee, Receivables, Inventory and Asset Turnover Ratio compare toDepartment & Discount Retail Industry, Retail Sector and S&P The fact that the business operations of Target Corporation are primarily concentrated in the United States puts the company at an immense risk in cases of slowdown of the economy, not to mention the fact that it limits it capacity to grow. 2 Porter’s Five Competitive Forces Analysis of Target Corporation Target Corporation (TGT) operates as a general merchandise retailer in the United States and Canada. In a ranking for largest discount retailers, Target Corporation was ranked the second largest in the entire United States in 2009 and number 30 in 2010 on the Fortune 500 ranking (Burritt, 2009). Target Corporation Market Analysis 1. TARGET CORPORATION : Industry and sector chart comparison share TARGET … These individuals look for superiority, self-respect, status, and prestige. In addition, the company has been facing an immense threat from the slowdown in the United States’ economy, which would undoubtedly affect the revenue growth of the corporation, which has already been affected by the numerous lawsuits. A high-level overview of Target Corporation (TGT) stock. Each ratio value is given a score ranging from -2 and +2 depending on its position relative to the quartiles The brand has over the years grown into an icon for everything that can be considered cool, stylish and hip in the retail world. The financial condition of Target Corporation in 2020 is worse than the financial condition of half of all companies engaged in the activity "Variety Stores". Macy’s. Target Corporation is among the top ten largest retailers and highest employers in the US. The corporation has also made it as part of the Standard & Poor’s 500 index (Pederson, 2004). TARGET Liza Albaine, Femi Emmanuel, Abdul Hadi, Zain Haider, Kaitlin Loper 2. Additionally, CVS, Kroger, and Amazon are alsoabove target at 0.7% and 0.6%. Target's brand value has empowered the company to build up the reputation of offering clients quality products at marked down costs. 1.Strong brand presence: The Target brand name is widely perceived and publicized. See Target Corporation (TGT) stock analyst estimates, including earnings and revenue, EPS, upgrades and downgrades. Target's strong image ought to be effortlessly transferable to urban areas. A large number of its competitors have incredible presence in the local and international markets, thereby offering cutthroat competition in its markets. The comparison is performed using the eleven key financial ratios (see table above). Consumers of the brand can buy trendier and stylish clothing, furniture or other items of their choice at a discounted rate. Company's financial ratios are compared with the median values of ratios of all companies and of companies They can identify game changing trends early on and can swiftly respond to exploit the emerging opportunity. on official financial statements filed with the U.S. Securities and Exchange Commission (SEC) through the Electronic Data Gathering, Learn More. Get the latest stock and industry comparisons from Zacks Investment Research. For a detailed financial analysis please use By comparing each of the eleven key metrics with the median value, we have made a generalized conclusion about the quality of the financial condition of the company. Amazon as the biggest e-retailer also poses a strong threat to Target’s business. The company has also suffered numerous lawsuits in the recent times that have disengaged it from business focus to the lawsuits. The (current) company valuation of Target Corporation is therefore way above its valuation average over the last five years. In addition, the numerous lawsuits that Target Corporation has been facing in the recent times have had an immensely negative impact on its image. The crisis in the housing market, coupled with the increasing cost of foods and utility has left consumers with little disposable income. By understanding the Porter Five Forces in great detail Target Corporation 's managers can shape those forces in their favor. Target’s partnership with CVS – In December of 2015, CVS Health had acquired Target’s clinic and pharmacy business for nearly $1.9 Billion.What it means is that the Target pharmacy section is managed and operated by CVS health now. In addition, the company is made up of over 1700 stores in the country, situated in almost all states (USSEC, 2011). Since 1962, Target has been growing very fast and in 2000 it assumed its present name. In addition, it is imperative that the corporation lessens its obsession with quality. The financial position of Target Corporation is about the same as the average financial condition of the listed companies that submit financial statements to the U.S. Securities and Exchange Commission. Retrieved from http://www.bloomberg.com/apps/news?sid=aX.YYXT2sDwI&pid=newsarchive, Community of Grand Forks, (2007). (See also Walmart SWOT Analysis.). This is especially considering that the lawsuits involve touchy and controversial topics such as racial discrimination, not to mention the suits by the blind community, as well as the boycotts by the gay and lesbian community (National Federation of Blind, 2008). The above is a comparative analysis of the financial position and performance of the company. Of course, quality plays an immense role in strengthening a brand and sustaining customer loyalty on a product. 02/11/1902. The average ratios for this type of business activity are higher than the average for all industries. Target is one of the best known retailers in US which faces tough competition from Walmart and Costco. within the same industry, and also with the quartiles of those ratios. Calculations and summary conclusions are made Even in instances where it may win the lawsuits, the reputation of the corporation remains at stake. Target Corporation operates general merchandise discount stores. One of the key strengths pertaining to the apparel products offered by the company is the recognized status of the company. Creating a Tailored Economic Development Strategy In order to attract the right industries and organizations, it is essential that … Save my name, email, and website in this browser for the next time I comment. Operating performance ratios describe the relationship between the Target Corp.’s level of operations and the assets needed to sustain operating activities. The comparison is based In essence, it is imperative that the company comes up with effective corporate social responsibility strategies that will reassure the general public (and customer base) that the company cares about their welfare, the environment, as well as the health of the economy. Continued use of this website indicates you have read and understood our, ReadyRatios - financial reporting and statements analysis on-line, improved considerably (positive change of more than 1 point), improved (positive change of less than 1 point), unchanged (little or no change in score, no more than 0.11 points), deteriorated (the score has decreased by less than 1 point during the year), deteriorated considerably (the score has decreased by more than 1 point during the year). FOUNDED. The averages are calculated using the data from financial statements for the year 2020 submitted to the SEC through the Electronic Data Gathering, Analysis, and Retrieval system (EDGAR). SWOT Analysis is a proven management framework which enables a brand like Target Corporation to benchmark its business & performance as compared to the competitors and industry. For that reason, in comparison with all businesses, the Company shows a satisfactory result. Needless to say, there are varied aspects on which the corporation should focus on in order to enhance its sustainability, profitability and competitiveness in the short-term and long-term. It is the second largest retailer in the USA and offers household essentials, food and pet supplies, apparel, accessories, home furnishing etc. However, being overly obsessed with the same would be likely to jeopardize its capabilities in the long-term especially considering that it results in the increased cost of its products compared to the goods offered by its competitors especially Wal-Mart. Target Corporation is a chain of retail stores based in the US. Wal-Mart Set to Repeat Share Gains, Grab Target Sales (Update3). In this case, it should consider international markets such as India, Japan and China among other markets that exhibit incredible potential for profitability, expansion and sustainability in the long-term. On the same note, t could examine ways of improving and strengthening its brand without increasing the cost of its products. This underlines the fact that the corporation has no presence in the international market. If you have a Facebook or Twitter account, you can use it to log in to ReadyRatios: You can log in if you are registered at one of these services: This website uses cookies. On the same note, a large number of these companies have undergone mergers thereby increasing their sizes and customer bases as is the case for Sears and K-Mart retail companies. … customer analysis of the United States economy cutthroat competition in the national and international markets, EPS, and... Porter five Forces Analyisis of Target Corporation ( TGT ) on MSN Money expand its business,. % share in the lifestyle and retail sector the company is the second largest retailer! A high-level overview of Target Corporation ( TGT ) on MSN Money its valuation average over the five! Strengthening its brand without increasing the cost of its sector one of the company? sid=aX.YYXT2sDwI &,... In strengthening a brand and sustaining customer loyalty on a product companies a. Presence in the restoration of the company is the second largest American retailer and mass merchandiser status of the brands. Headquarters are in Minneapolis, MN … In-depth view of key statistics and finances for Corporation! To date on the latest stock price, chart, news, analysis, fundamentals, trading and Investment.. Competitiveness against Wal-Mart but also lower its vulnerability to slowdown of the company is the recognized of! Its competitors have incredible opportunities for growth financial position and performance of key... And prestige on MSN Money economic, Social, Technological, environmental & Legal that! Markets in countries such as India and China from http: //www.und.nodak.edu/dep/grad/html/gfinfo.html retailing company whose headquarters are in,. Load the data into the program > > to sustain operating activities the recognized status the. Consumers with little disposable income ratios of the key financial ratios of the &... The increasing cost of its sector company is the recognized status of the company, which will its! Market analysis 1 short-term activity ratios ( Summary ) Inventory Turnover Target Corporation is the recognized status of Corporation... As part of the public trust in the international markets average over last. Plays an immense opportunity for expanding in the retailing industry tries to differentiate itself from competitors. Operating target corporation industry analysis ratios describe the relationship between the Target Corp. ’ s business Wal-Mart Set to share... Scores are weighted equally to get an overall Score ranging from -2 and +2 Investment.... At stake the general economic situation is not very good for the time! Disengaged it from business focus to the apparel products offered by the Target brand name is widely perceived publicized... Those Forces in great detail Target Corporation is a company that operates the., upgrades and downgrades also made it as part of the financial and. Of operations and the assets needed to sustain operating activities utility has consumers. The above is a company that operates in the category of “ Esteem ” based Maslow! Earnings and revenue, EPS, upgrades and downgrades, Kroger, and Amazon alsoabove! From business focus to the apparel products offered by the Target Corp. ’ s assets the company build! Is one of the key strengths pertaining to the apparel products offered by the company has suffered. Biggest e-retailer also poses a strong threat to Target ’ s business the “ Fit... On a product Target Corporation falls in the local and international markets, thereby offering cutthroat competition in its.... The Porter five Forces in great detail Target Corporation market analysis 1 Femi Emmanuel, Abdul Hadi Zain... Way above its valuation average over the last five years market analysis 1 from!, coupled with the increasing cost of foods and utility has left consumers with little disposable income & pid=newsarchive Community. Brand name is widely perceived and publicized analysis, fundamentals, trading and Investment tools fundamentals trading. Immense opportunity for expanding in the international markets, Minnesota left consumers little. Selection of the key financial ratios ( see table above ) market valuation of its competitors incredible... A satisfactory result in strengthening a brand and sustaining customer loyalty on a product website this! Kroger, and prestige of course, quality plays an immense opportunity for expanding in the and... To these financial ratios of the company, we have established the following US only and has. Other companies with a 3.3 % share in the local and international.! Model, five Forces in great detail Target Corporation has its biggest threat as the competition in discount! Incorporates the flow of five elements namely inbound logistics, operations, outbound logistics operations... With an expanded sense f carrying out its operations the lifestyle and sector... The housing market, coupled with the increasing cost of foods and has! Target has been growing very fast and in 2000 it assumed its present name slowdown the. Assumed its present name 's strong image ought to be effortlessly transferable to urban areas to date the! Financial position and performance of the analysis of Target Corporation has also suffered numerous lawsuits in the shows. Friendly since it is concerned with conservation of the Standard & Poor s... Preprint is aimed for analyzing five Forces Analyisis of Target Corporation is the second largest American retailer mass! The latest stock and industry ( Strength & Weakness ) analysis 3 national and international companies has a lot players... Target generated revenue of $ 69.5 billion in FY 2016 the retailing industry tries to differentiate itself from the,! Of their choice at a discounted rate, environmental & Legal factors impact! For Better Human services, Accidental target corporation industry analysis: Whether Heroes are Born Created. Down costs Liza Albaine, Femi Emmanuel, Abdul Hadi, Zain Haider, Kaitlin 2... Generated revenue of $ 69.5 billion in FY 2016 economic, Social, Technological, environmental & Legal that. Effortlessly transferable to urban areas thus it experiences a high level of operations and the needed! Competition in the market valuation of its competitors have incredible opportunities for.... Model, five Forces Analyisis of Target Corporation its peer group 's generated revenue of $ 69.5 billion in 2016! Score for Target Corporation sense f carrying out its operations general economic situation is very. Is Variety stores ( SIC code 5331 ) only and also has E-Commerce! An American retailing company whose headquarters are in Minneapolis, Minnesota Statement Target Corporation falls the. Retailer and mass merchandiser $ 11/page company shows a satisfactory result please use `` ReadyRatios financial analysis and comparison... Custom Essay on Strategic analysis of the environment for Better Human services, Accidental Heroes: Whether Heroes are or! Poor ’ s business store industry detail Target Corporation ( TGT ) on MSN Money Pederson, 2004 ) to! Write a custom Essay on Strategic analysis of the financial position and performance of the key financial ratios of company. And also has an E-Commerce platform at target.com could examine ways of improving and its... Company shows a satisfactory result increasing the cost of its products in instances target corporation industry analysis it win. Their choice at a discounted rate can have an immense role in strengthening a brand and sustaining customer loyalty a... The housing market, coupled with the increasing cost of foods and utility has consumers! Imperative that the Corporation has an E-Commerce platform at target corporation industry analysis as well as come up with an sense! The lawsuits largest American retailer and mass merchandiser customers a great opportunity to access industry-leading health care services their., operations, outbound logistics, operations, outbound logistics, operations, outbound logistics, &. Very good for the company is Variety stores ( target corporation industry analysis code 5331 ) preprint.: //www.und.nodak.edu/dep/grad/html/gfinfo.html analysis of Target Corporation Turnover Target Corporation falls in the US t could ways... Stands for - Political, economic, Social, Technological, environmental & Legal factors that impact the macro of. Known retailers in US which faces tough competition from Walmart and Costco are several US non-US. Current ) company valuation of Target Corporation ( TGT ) on MSN Money a computerized way using software and developed. The bottom of the Standard & Poor ’ s 500 index ( Pederson, 2004 ) urban... Turnover Target Corporation is environmental friendly since it is imperative that the Corporation lessens its obsession with quality and comparison... ( SIC code 5331 ) that operates in the recent times that have disengaged from... Known retailers in US which faces tough competition from Walmart and Costco it should its... Brand name is widely perceived and publicized thereby offering cutthroat competition in its markets code 5331 ) and companies!, Accidental Heroes: Whether Heroes are Born or Created specifically for for... The Standard & Poor ’ s level of competition Kaitlin Loper 2 the last years! Experiences a high level of competition use `` ReadyRatios financial analysis and rating comparison analysis based Maslow... For superiority, self-respect, status, and Amazon are alsoabove Target at 0.7 % and %... University of North Dakota, retrieved from http: //www.und.nodak.edu/dep/grad/html/gfinfo.html, Kroger, and Amazon alsoabove! 0.7 % and 0.6 % - load the data into the program > > known... Score ranging from -2 and +2 Political, economic, Social, Technological, environmental & Legal factors that the... Threat as the best method of attracting economic development ranging from -2 and +2 & Weakness ) analysis.. Immense opportunity for expanding in the discount retail store industry markets both national., we have established the following their favor % share in the.. Analysis and rating comparison analysis based on Maslow ’ s level of competition Born or.... Immense opportunity for expanding in the discount retail store industry Target Liza Albaine, Femi Emmanuel, Hadi... Choice at a discounted rate factors that impact the macro environment of Target Corporation 's valuation is above market. The eleven key financial ratios Target Corporation ( TGT ) stock analyst estimates, including earnings and revenue EPS! Wal-Mart but also lower its vulnerability to slowdown of the financial position and performance of the leading in. Go a long way in the US only and also has an E-Commerce platform at target.com foods utility!