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Walmart versus target comparison
Comparative analysis walmart and target
Comparative analysis walmart and target
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INTRODUCTION
Since 1962 and the beginning of the discount retailer market Wal-Mart has been ahead of the retail game. By 1967 there were 24 Wal-Marts that had grossed 12.6 million dollars. In just 7 years Wal-mart had spread into 9 states. By 1979 Wal-Mart was the fastest store to reach a billion dollars in sales. In 2005 Wal-Mart has 3,800 domestic stores along with 3,800 stores internationally, and had made over 312 billion dollars. As you can see the Wal-Mart empire has grown monumentally. To move into this segment of the market would be tough.
The first Target store was also opened in 1962. It was started under the Dayton Hudson Corporation. As you can see the Target corporation has a decorated past as well. Target now has 1,300 stores in 47 states. The store count itself is still a lot less than Wal-mart. For every one Target store, there is three Wal-Marts. To put together a plan of action we must first research many facets of the Wal-Mart corporation such as: Marketing, Products, and Services provided. From these main areas we will be able to put together a plan for immediate implementation.
Products/Services/Marketing
The first area to be observed is the products that Wal-Mart sells compared to Target. Wal-Mart offers products in the areas of: Apparel, Baby, Books, Electronics, Garden and patio, Gifts and Flowers, Home, Jewelry, Pets, Sports, Toys, Video Games, Automotive, as well as groceries, and cleaning supplies.
Along with being the world's largest retailer, Wal-Mart is also the world's largest grocer. A full grocery center has been added to many of the Wal-mart's nation wide. Wal-Mart's most current goal is to become a player in the organic food market. Adding organic foods to...
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...nd many not covered by health insurance. On recent visits to both stores I noticed the Target store was cleaner, and the customer service was better than Wal-Mart.
Summary
After looking at the Business practices, marketing, products, and services of Wal-Mart I no longer have a doubt that we can compete with Wal-Mart, but the new question is do we want to? In order for Target to be a competitor with Wal-Mart, Target would have to lower its store standards, treatment of employees, and target market. Along with these things Target would also have to go against one of its store standards, and start buying products that were made using slave and or child labor. A few ways that Target could improve by imitation would be through increasing its in store services. The recent addition of the clinic in store is a new and innovative idea a step ahead of Wal-Mart.
As I have outlined in the charts below, there are various similarities and differences between Wal-Mart and Target. Wal-Mart is Target’s primary competitor, and vice versa. Wal-Mart has a strong market presence in its global markets and has a diverse range of products and services that are affordable and available in stock. Target, on the other hand, does not have a strong market presence or efficient product supply; however, Target’s physical environment and innovative products further the brand’s image and value. Unfortunately, Target and Wal-Mart are both e-commerce laggards with major competitors such as Amazon. Target faces complications with their pricing strategies and their product availability, which hinders their strength when competing
Wal-Mart Stores, Inc. operates retail stores in various formats around the world. Wal-Mart is committed to growing by improving the standard of living for our customers throughout the world. Wal-Mart earns the trust of its customers every day by providing a broad assortment of quality merchandise and services at every day low prices while fostering a culture that rewards and embraces mutual respect, integrity, and diversity. In 2006 the net sales were $312.4 billion versus in 2005 were $285 billion.
According to www.targetcorp.com, Target is an upscale discount retail chain that sells quality products at attractive prices, and prides itself on clean, spacious, and guest-friendly stores. Target is the second largest "general merchandise" retailer (behind Wal-Mart); selling almost anything one would need to complete the "one stop shop", especially with the addition of the SuperTarget stores. The first Target opened in Roseville, Minnesota in 1962. Since then, 1,330 stores located in forty-seven different states, which includes the 141 SuperTarget stores, have opened nationwide. Target also has twenty-two distribution centers located in nineteen states. In addition to the vast number of store locations, Target also has other businesses that include: Target.com, Target Financial Services, Associated Merchandising Corporation, and Target commercial Interiors. Through all the key businesses, Target employs nearly 300,000 people from diverse backgrounds. The current Chairman and CEO of Target is Bob Ulrich.
The Target corporations in plans to grow converted retail stores to retail super stores. In 2004 Target added 65 new merchandise stores and eighteen new Target Superstores all across the United States.
Target has three primary retail divisions which consist of Mervyn’s, Marshall Field’s and the Target stores. The Target stores are currently the second ranked discount retailer in America behind Wal-Mart. Target has approximately 1,778 stores located across 47 states. The retailer distinguishes itself from competitors by selling higher end, fashionable products at discounted prices.
"Wal-Mart Stores, Inc. is the world's largest retailer, with $285.2 billion in sales in the fiscal year ending Jan. 31, 2005. The company employs 1.6 million associates worldwide through more than 3,700 facilities in the United States and more than 2,400 units in Argentina, Brazil, Canada, China, Costa Rica, El Salvador, Germany, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico, South Korea, and the United Kingdom. More than 138 million customers per week visit Wal-Mart stores worldwide." (Walmartfacts.com)
Wal-Mart’s competitive environment is quite unique. Although Wal-Mart’s primary competition comes from general merchandise retailers, warehouse clubs and supermarket retailers also present competitive pressure. The discount retail industry is substantial in size and is constantly experiencing growth and change. The top competitors compete both nationally and internationally. There is extensive competition on pricing, location, store size, layout and environment, merchandise mix, technology and innovation, and overall image. The market is definitely characterized by economies of scale. Top retailers vertically integrate many functions, such as purchasing, manufacturing, advertising, and shipping. Large scale functions such as these give the top competitors a significant cost advantage over small-scale competition.
Walmart product selections is almost three times as much as that of HEB. Walmart is a one-stop-shop store. Customers can walk into Walmart and literally shop until they drop. Walmart provides groceries, baby clothes, boys/girl clothes, adult men/women, shoes, backpacks, diapers, wipes, baby formula, electronics, candles, towels, laundry detergent, cookware, gardening tools, birthday cards, gift bags, candy, costumes, school supplies, office supplies, mini refrigerators, outdoor activities, toys of all ages, board games, bikes, scooters, helmets, sport activities, a fully functioning automotive department, where customers can get oil changes while they shop. An Ophthalmologist office with in store purchase and carry out, a nail and hair salon, and a fully functioning bank. If that’s not enough, why go home and cook after all that shopping when you can stop and grab a bite to eat at Mcdonalds or
Target Corporation, the company like any other large retail company for example, Wal-mart offers an assortment of its general stock and sustenance through its store and advanced diverts in the United States to their clients at a rebate. It 's wide stock stores offers an assortment of food, including perishables, dairy, dry grocery and frozen items while its Super Target stores offer a line of sustenance items similar to customary grocery stores. Datamonitor, (2007). Target offers its services and products they offer into different ways hence there are those being sold at their stores and those that are sold online, for examples. The target stores such as CityTarget and TargetExpress sells edited general stock and nourishment combinations while
Unlike Walmart which has tapped into other businesses such as retailing fuel, Target has not tapped into businesses such as financial services and fuel filling stations among others
Wal-Mart Stores Inc. is in the discount, variety stores industry. It was founded in 1945, Bentonville in Arkansas which is also the headquarters of Wal-Mart. Wal-Mart operates locally as well as worldwide. It operated 1209 discount stores, 1980 super centers, and 567 Sam’s Club by January 31, 2006. It has also extended its operations to many international countries. It runs its retail stores in two forms: Sam’s Club and Wal-Mart Stores. The Sam’s Club sells assorted product lines such as hardwares, electronics, jewelry, and to mention a few. The Wal-Mart stores also offer similar products in addition to the following: health and beauty products, apparel for women, men and children, household appliances etc (www.yahoo.finance.com). The Vision Statement, Mission Statement, Values and Code of Conduct, Corporate Governance: Directors, Executive Management, Committees and Stakeholder will be the key elements that will discussed in this report as it relates to Wal-Mart. In addition to that, the major trends in the general/macro environment and industry will be analyzed.
Definitely, it should be noted that in most cases, we can only dream of purchasing good quality products for a reasonable price. In this regards, I would like to quote Brian Manning, “it’s good to search for the cheapest rate and to buy from the company that guarantees the lowest rate instead of seeking out the provider that is going to offer the best value. “You don’t go to Walmart to buy a Rolex or a Ralph Lauren polo… You go to Walmart for one reason: to get the cheapest priced product”. That sounds logical. On the contrary, it is extremely illogical to expect that the Target’s customers will be ready to purchase low quality products for a high price. It was one of its main business development mistakes; especially taking into consideration that Target started under very favorable circumstances. It purchased the lease agreements of up to 220 Zellers stores for C$1.825 billion . As it stated in The Globe and Mail, “Target inherited leases from Zellers that already came with rents well below market prices, averaging $6 to $7 a square foot, compared to going rates close to $20”
In other words, it wants to offer lower prices than a competitor like Target in order to drive foot traffic and sales. Wal-Mart has been effective in its quest, but Target has an edge in one area, and it 's an area that has the potential to grow. Target 's secret weapon is its REDcard. For Target customers using the REDcard, Target is actually cheaper than Wal-Mart. This is because Target REDcard members save 5% on most purchases. Plus, Target REDcard members visit the store more often and buy more items. Target is also offering free online shipping for REDcard members, which has led to significant online penetration. Wal-Mart has the edge, but not when you include Target 's
customer service while Wal Mart is the almost the opposite. Wal Mart has a negative atmosphere
Wal-mart has a reputation for caring for its customers, of course their employees, and for the prospective public. So Wal-Mart can be an industrial leader for the world of shoppers with an eye for lower affordable prices, company decision makers would continue it's systematic strategies that it's founder and president established years ago. Sam Walton believed in three guiding principles in his strategy planning they were to provide the customer with good value and service, to have a good relationship with its associates, and to be involved with the community.