“Expect More Pay Less” focuses on the narrow market scope and unique competency. The company expects more of its self than anyone else and takes pride in the low prices for name brand products.
“Target Corporation is a growth company focused exclusively on general merchandise retailing. Our principal operating strategy is to provide exceptional value to American consumers through multiple retail formats ranging from upscale discount and moderate-priced to full-service department stores.”
The Five Forces Model helps the business people understand the attractiveness and competitive pressures in the industry. The Providers of produces and services want to reduce buyer power so they create a competitive advantage by making it more attractive for customers to buy the products from them instead of their competition. Competitors respond to this by creating similar products. Buyer and supplier are the opposite. When the buyer power is lower the supplier power is high and when the supplier power is low the buyer power is high.
Target uses system, operating and utility software. Things like technology management, job coordination, Windows, Mac OS, Linux, anti-virus software, and disk optimization. All of the software helps run Target’s corporation. Whether it is used for making a website, scheduling employees, marketing products, or payroll. Technology is an important part of a business.
Target is always trying to reach out to new customers to offer new and complementary products as well as great service. This is called top-line initiatives. Customers are always Target number one concern.
IT uses the front office systems which are the primary interface to customers and sales channels. They collect data which they send to all of their customers. Also used, the back office systems where customers orders are fulfilled and processed. This also sends customers information on their database. Then there is the CRM system that analyzes and gives out the customer’s information to the organization with all their purchases and experiences. Examples of organizations that use this are Clarify, SAP, and Siebel Systems.E-Business is used all over the world. It helps reduce communication, transaction, and agency costs. There is faster distribution of knowledge because of this. Internet business models used for Target would be B2C also known as business to consumer. Targets website has virtual storefronts including products catalog database, shopping cart technology, web server, and client browser. It is an online marketplace which is easy to click on products to add to your cart. Your payments are electronically put into the system. Online and Pop-up ads help market their products.
Target Reports September Sales Results
While September sales where on the lower side of their expectations, Target was pleased with the results of their Back-to-School and Back-to-College season sales. The categories of grocery, beauty and healthcare are continuing to be a strong area for sales. With the launch of the new REDcard rewards program in October, which offers guest the opportunity to save 5% when they use one of their Target cards, they are expecting to increase their guest traffic. Also in October, the 2010 remodel project will be completed which will allow Target to enter the 4th quarter with no stores under construction.
"We believe these strategic sales-driving initiatives will help Target to continue delighting our guests while gaining market share profitably in the upcoming holiday season." 
