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Target (SWOT Analysis)

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“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.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Strong brand value
  • Global sourcing capabilities management (GWM)
  • Leading market position

Weaknesses

  • Product recalls
  • Declining profits
  • Geographic concentration

External

Opportunities

  • Store expansion
  • Demand for private label products
  • Demand for organic food

Threats

  • Economic slowdown in the US
  • Increased minimum wages in the US
  • Intense competition
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