Target has many competitors in the market, and the level of competition is highly intense. Some of its main rivals are Wal-Mart stores, Home Depot and Costco Wholesale Corp. All of them produce similar products as well as offer almost the same services to their consumers. Naturally, the organization would need a strategy that helps it to stand out and to distinguish it from its competitors, thus, Target 's positioning was based on more than just pricing; it combined quality and style. This was the differentiation strategy that have always been applied since the launch of the organization.
According to Kantar Retail, most of Target’s shoppers are younger on average than its rivals, and more educated. That means it has to consistently offer something different and appealing; it emphasizes more on the latest-trend apparel, eye-catching home décor and exclusive designer merchandise than its competitors. This results in a willingness to pay a bit more for items by customers who are willing to pay a bit more. Moreover, this successful utilization of the differentiation strategy has created a brand loyalty among the customers. According to a study performed by Maritz Research, 20% of Target 's customers, referred to as "guests," are highly loyal to shopping at Target, they are on average younger, better educated, and more affluent. Customers of Target also prefer to shop at a place where their friends and family are likely to shop, and they are not price sensitive.
It is often difficult to determine the overall organizational structure of a major organization such as Target Corporation. however, based on Target stores, it appears that different departments within the stores are organized according to functions. Within that functional s...
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...t Journal, a former Target employee claimed that there was a miscommunication between the different departments, especially with the inventory, which led to the store shelves being disorganized and empty, and selections were limited. This issues might be due to the fact that different functional departments might had difficulties working with each other.
Target may have a strategic advantage over the other competitors, such as the different atmosphere, the physical environment or the stylish experience they offer to their customers in the USA. Nonetheless, it seems that the differentiation strategy did not fully work in Canada, and the organization was not able to stand out among its Canadian competitors. A careful study and consideration of which organizational strategy is the most suitable for the Canadian market could have helped to avoid the project failure.
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