The term “Competitive advantage” refers to attributes or factors that allow any organization to produce products or services efficiently or better than its competitors. These factors allow companies to outperform their competitors and allow companies to charge high prices. Target is a renowned American departmental store chain that was established in 1962. It offers a variety of product lines including home textile, clothing, electronics, food, jewelry, games, toys, beauty & health products, furniture, footwear, and much more. Target has many critical competitive superiorities that are challenging for competitors to achieve. Target’s competitive advantages are derived from its business model which is based on promoting positive customer experience and employees’ satisfaction with progressive roles. Target’s ability to form and sustain a loyal customer base is its primary competitive advantage. But there are a few more important competitive advantages that propelled Target’s journey such as Extensive Nationwide Presence, Small Stores, Busy Locations, Competitive Pricing, Broad Selection of Exclusive Brands, Marketing Campaigns, Logistics & Supply Chain Management, Enticing Concessions, and Strong Brand Image. Target has set a standard for other departmental stores based on a volume-based approach instead of a margin-based approach. Not only has this influenced the strategic process alignment of departmental store owners in the United States, but also across the globe.
About Target
Target is an American general merchandise retailer and its headquarter is situated in Minneapolis, Minnesota U.S. founded in 1962 under the Dayton Company. As of 2022, according to S&P 500 Index, Target is the 7th largest retailer in the USA with worldwide retail sales of $104.62 billion. Target has marked its presence worldwide but California, USA is on the top of the list with 309 Target stores, as of 2022. Target aims to offer their customers quality brands at affordable prices and provide lots of ways to save money on their purchases along with earn rewards on every visit to Target stores.
Competitive advantages of Target
Competitive advantages are the parameters that allow the business to raise more sales and superior margins than the competitors. Competitive advantage helps companies to build brand loyalty and attract a wider target market. Competitive advantage could be any strength or edge including geographic location, access to new technology, enriched information, skilled labor, low-cost raw material, access to natural resources, etc. To gain a competitive position over the competitors, organizations design competitive strategy as a long-term plan with aim of getting a defensive position in the market.
Target attempts successfully to outbid its leading competitors like Costco, Amazon, and Walmart via some major competitive edges that drove Target’s success story.
- Strong brand image and loyal customers: Target has a very strong brand image in the eye of its loyal customer as people generally perceive that Target is better than its competitors when come to the shopping experience, store cleanliness, and overall operations.
- Competitive Pricing: Target curtails its overhead, using an economic pricing model. Target offers a limited range of company-owned labels instead to sell a vast assortment to manage prices and greater revenue generation.
- Extensive Nationwide Presence: Target has an extensive nationwide network with more than 1900 stores situated in 50 states of America.
- Small Stores, Busy Locations: One of the main competitive advantages of Target, is the strategic placement of small-scale stores and choice of busy locations for stores. Target stock merchandise in small stores in a way that meets the target market’s demand.
- Selection of Exclusive Brands: Target gives access to almost 48 unique brands (either privately owned or exclusive to Target) while shopping. Target is recognized for sales of household essentials that are sold under a company-owned brand.
Conclusion
Target has a purposeful mission to promote a positive customer experience via Target’s business model with dedicated and satisfied employees. To gain unique competitive advantages, Target aims to provide outstanding value and a shopping destination with joy for its customers. When it comes to the finest competitive advantages of Target, it can be emphasized that a loyal customer base, national wide existence, and store locations are the most prominent edges that Target enjoys and lift sales with greater revenue.
Frequently asked questions (FAQs)
- What is Target?
Target is an American renowned retailer and headquartered in Minneapolis, Minnesota U.S. founded in 1962 by Dayton Company. Target offers product lines including home textile, clothing, electronics, food, jewelry, games, toys, beauty & health care products, furniture, footwear, etc.
- What is the Competitive advantage?
Competitive advantage is known as the parameters that permit an organization to produce products or services competently or better than the opponents.
- What are the Competitive advantages of Target?
Loyal customer base, nationwide presence, Stores design, Busy Locations, Competitive Pricing, Selection of Exclusive brands, Marketing campaigns, and Concessions at stores.
