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Target Corporation. By: Bowei Wang , Peter Haldis , Yoichiro Hayakawa, Arjun Karanchi , Harrison Killefer , Tadhg Moriarty, Will Swaim . Target Performance and Scope.
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Target Corporation By: Bowei Wang, Peter Haldis, Yoichiro Hayakawa, ArjunKaranchi, Harrison Killefer,TadhgMoriarty, Will Swaim .
Target Performance and Scope • Based on Fiscal 2011 data (ending January 28, 2012):-Total revenue Y/Y growth of 3.7% (to $69.87B); five-year GAGR of 3.3%-Net earnings Y/Y growth of 0.3% (to $2.93B); five-year CAGR of 1.0%-Diluted EPS Y/Y growth of 7.0% (to $4.28); five-year CAGR of 5.9% • Product purchase mix by year: • For comparison, Wal-Mart had global revenue Y/Y growth of 5.9% (to $443.9B), and net earnings Y/Y growth of -3.6% (to $16.4B).
Three Competition Questions Create Value Growth Capture Value Differentiation
Current Profit Drivers Competitive Advantage Identify + Upgrade Capabilities Resources Target REDcards target.com & target apps Successful Private Labels Wide network of Stores Relation with suppliers Fast Expansion Customer Loyalty Value for Money Trendy Aesthetics
Sustainable Competitive Advantage Conclusion Yes Yes Yes Yes
E-Commerce • Target needs a competitive e-commerce platform • Currently 23rd in annual online sales • New Competitors • “Showrooming”
E-Commerce • Strategy for Website Development • Must make the development of Target’s online retail platform the number one priority • The website must offer reliability and ease of use • Leverage brick & mortar presence
Painting Canada Red 7 Provinces-200 Stores • Acquisition+Remodel+Model
Conclusion: It is impossible to take on Wal-mart directly! Online presence is the biggest market for growth Partnerships are our best friend Canada, eh?
Competitor Profiling • Reaction from Amazon • Reaction from Walmart
Painting Canada Red Plus 36 Target Stores, density in MD: 62670 Far away from market saturation
Painting Canada Red 6 Provinces-135 Stores • Income Analysis • Household income in Canada provinces • Comparable to top 10 of U.S states • Example: Maryland • Capacity Analysis • Financial Capabilities Analysis • $11m • 135 • 1485m • $1254m • 3% • $1454m Feasible Plus 36 Target Stores, density in MD: 62670 Far away from market saturation