target swot analysis essay

SWOT Analysis of Target: Everything You Need to Know in 2022

A popular USA chain, Target sells various products from its stores across the USA. Their extensive distribution network and retail outlets provide the best selection of unusual goods in one accessible spot.

Despite all of Target’s best efforts, the retailer is behind in digital marketing. Marketers need to adapt to the changing tastes of consumers. As a result, successful marketing initiatives are increasingly focusing on digital channels.

The SWOT Analysis of Target Corporation are the subject of this blog. But, first, let’s do some background research on Target, including the company’s history, offerings, financial health, and significant rivals.

SWOT analysis of Target

There are many SWOT analysis examples out there – and today, we will be looking at Target.

About Target

The Target Corporation is a chain of American department stores that carries brand-new products , including hardlines and soft lines. This store ranks eighth in terms of retail sales in the USA. The firm’s headquarters are in Target Plaza, which is situated in Minneapolis, Minnesota.

Target’s primary objective was to “personalize each store to assure a locally relevant experience.” It was established on June 24, 1902, in Roseville, Minnesota, making it 194 years old.

In 1962, Dayton’s company created the first Target store in Minneapolis, and in the 1980s, as part of the Hudson organization, Dayton started expanding Target throughout the nation.

It introduced a new format for its namesake stores in the 1990s. As a result, the company has done quite well as the “cheap-chic” leader in its field. The company rebranded itself as the target corporation in 2000, and by 2004 it had sold all of its department store brands.

Products by Target Corporation

Here are some of the things commonly found at Target:

• Provisions and Drinks
• Cosmetics and Health Aids
• Apparel, Accoutrements, and Shoes
• Toys/Games/Sports
• Textiles and Furnishings
• Products for the Home, Including Electronics
• Goods for the Garden and Lawn
• Preparation for a Trip
• Stationery, Crafts, and Other Miscellaneous Goods

SWOT Analysis of Target: Strengths

The positive aspects of an organization are a direct result of its strengths in SWOT Analysis of Target. Target has an advantage over its rivals due to the causes above. Here are some of Target’s best features:

1. Loyalty Program

With the introduction of the REDcard Rewards membership software program in 2010 , Target has retained and expanded its customer base while also providing its regular consumers with a convenient way to save money when shopping in-store or online.

Within five years of its establishment, REDcard had a 21% penetration rate, ensuring the company’s continued success thanks to its dedicated client base.

2. Corporate Partnerships

Most Target locations also have a Starbucks, a significant customer draw. CVS also took over all of Target’s pharmacy operations, creating a close partnership between the two major corporations. Joint efforts like this benefit everyone involved financially.

3. Financial Position

The financial foundation of Target Corporation is strong. They’ve been steadily increasing their popularity for well over a century.

4. Variety of Merchandise

Customers may get anything from fashionable clothes to high-quality sports gear at Target. Once inside, the buyer doesn’t have to travel anyplace else to fulfill his shopping needs.

In addition to making precise product suggestions, the Target molecular app can recommend related products based on a customer’s tastes.

5. Private-label Brands Products

Private-label items are manufactured just for a retailer, such as those sold by Target. These products are often offered at lower prices than rivals, with a significant percentage of the proceeds going to the retailer.

It is one the important part of SWOT Analysis of Target. Target’s private-label items include exclusive fashion lines, culinary brands, and more, and they have many dedicated fans.

SWOT Analysis of Target: Weaknesses

Consumers’ reactions and problems with management might reveal a company’s weaknesses in SWOT Analysis of Target. When a company’s performance falls short of its rivals, it’s typically because it lacks some resources that those rivals have in plenty.

1. High Prices

Target is often accused of being too trendy by its detractors. However, according to a survey undertaken by business leaders, Target’s pricing at some of the country’s top rivals, such as Walmart, is similar across various shopping centers.

2. Technology Sector

The Target Corporation is spending enough to expand its technological sites, but it is still far behind in this field. It is one the important part of SWOT Analysis of Target.

To a large extent, Target is hampered by the fact that many of its rivals are already established as market leaders in this sector.

3. Data Security Issues

Target has been the subject of many high-profile data breaches. As a result, protecting the client’s financial information is crucial. In addition, Target offers credit services, and because of this, customers’ credit accounts have been breached, putting their private financial details at risk.

4. Lack of Global Reach

Though it has been around for a century, Target hasn’t had the same global impact as other corporations. Although they have never been defeated in the United States, they are not a major player internationally.

The company opened 133 stores throughout the North American nation between 2011 and 2015 but was eventually compelled to shut them all down. Given that it was one of Target’s worst failures in international markets, the retailer decided against it.

5. Store-Centric Approach

Stores now need to prioritize online sales. Despite being one of the few companies to profit from the increase in internet shopping, Target is seeing its brick-and-mortar sales drop, which is offsetting any online benefits.

Even though accessories and clothing have a modest profit margin, Target has seen a decrease in sales in these categories. Low-margin items are more sensitive to drops in sales, which reduces profitability more than for higher-margin products.

SWOT Analysis of Target: Opportunities

Chances may arise from various sources, including shifts in consumer habits, government regulations, technological advancements, etc. To maintain market dominance, businesses must be alert to and responsive to emerging possibilities.

1. Delivery System

The firm recently introduced a new service that enables users to return things in as short as one day, similar to Amazon and Walmart.

After Target spent over $500 million on acquiring Shift , a business utilized by numerous of its rivals, the idea became feasible. In addition, recent years have shown that the market for selling and shipping electronic devices online is quite competitive.

2. Urban Population Stores

Target’s image as a retailer is built on the spending of suburban families and millennials. However, in contrast to popular belief, big-box stores are not always located in highly populated urban areas. As a result, they may quickly increase their customer base by entering this sector.

3. Target’s Partnership with CVS

CVS Health purchased target’s clinic and pharmacy division in December 2015 for about $1.9 billion . This implies that CVS Health is in charge of the Target pharmacy department. So it’s a terrific chance for Target’s clientele to access first-rate medical care right in the shop.

4. Small–Format Stores

The Target Company has been expanding into smaller-format shops in populated locations near universities and other academic institutions. These shops are about a third as big as an ordinary one of their kind.

The one-hundredth small-format shop began for business in the summertime of 2019, with annual revenues expected to top billion dollars by the year’s end.

The first of the company’s 6,000 square foot “micro-stores” will open in crowded urban and university areas in 2021. Also, it aims to establish around three dozen new small shops extending from 12,000 to 40,000 sq ft.

Small-format shops have great promise and can fuel Target’s development for many decades.

SWOT Analysis of Target: Threats

Threats of Target corporation in SWOT Analysis of Target are as follows:

1. Increasing Competition

There is a recent proliferation of new companies operating in this field. Competitiveness will increase as a result of this. It is one the important part of SWOT Analysis of Target.

Walmart is one of Target Corporation’s most significant retail industry threats. We also face stiff competition from Amazon, Home Depot, Costco Wholesale, and many more.

2. Government Regulation

Target Corporation faces danger if it deviates from its profit-driven overall plan and is subject to the laws and regulations enforced by the government.

3. Changing Customer Preferences

Increases in internet purchasing might have severe consequences for Target’s financial success. There has been a recent uptick in competition from companies like Amazon, which drives supply chain management via e-commerce.

Although this might provide new growth prospects, Target could have challenges competing in densely populated areas due to Amazon’s increased focus on logistics and its ability to meet shifting consumer needs promptly.

Retail chains like Target may benefit significantly from doing a SWOT Analysis to dissect their business and evaluate the opportunities and threats facing their management. This concludes our Target Corporation SWOT analysis blog study.

Target’s status as the preeminent shopping destination in the United States is attributable, in no little part, to the fact that the retailer has been able to forge fruitful partnerships with other businesses, provide customers with a diverse selection of goods, establish customer loyalty programs, and sell its private-label goods, all of whom have contributed to an increase in revenue.

Target’s failure may be attributed to the absence of an urban mailing address and the company’s expansion into foreign markets. However, the company may keep its enviable position and increase sales by catering to these criteria, building a robust security system for client confidentiality, and entering the digital marketing sphere.

Target may take advantage of the low overhead and high return on investment of digital advertising by increasing its visibility across a variety of online mediums, including search engine optimization (SEO), email marketing (EMA), content marketing (CM), and social media marketing (SMM).

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How to Write a SWOT Analysis Paper

Successful businesses and people have been conducting SWOTs since at least the mid-twentieth century and have refined the process over time. The four categories you will explore in your SWOT analysis paper are Strengths (S), Weaknesses (W), Opportunities (O), and Threats (T). You can use SWOT analysis to help you assess your position in project planning, business development , finance, relationships, or for personal growth. Since SWOT analysis papers are usually assigned in business school or associated with business planning, we will focus on the steps for writing a SWOT analysis paper for business, but keep in mind that the process can be tailored to any situation—professional or personal.

If this process sounds laborious or daunting, do not fret: As with most things, conducting a SWOT analysis will get easier the more you do it, and eventually it might become an essential part of all of your decision-making processes. As you evaluate your business's strengths, weaknesses, opportunities, and threats, you will gain skills and insights that can help you evaluate yourself, your business, and various decisions you are facing.

Better than a pros and cons list

Perhaps you are thinking, This sounds just like a pros and cons list . A SWOT analysis provides more information than a simple pros and cons list, and it makes it easier to identify potential action items and areas for growth. SWOT analysis considers more than just the pros and cons of a situation: It helps you identify internal and external factors that contribute to or inhibit your success.

Strengths and Weaknesses are generally considered internal factors, so they are things that you or your company can control or can work to improve.

Opportunities and Threats are typically external factors that occur outside of your business (i.e., things that you cannot control), but they are things that could significantly affect you or your business.

Identify your objective/goal

To get the most benefit from your SWOT analysis, be as specific as possible with your objective . If you are analyzing a business, consider focusing on one particular aspect of the business.

The best way to formulate your paper is to use a SWOT analysis chart to organize your thoughts before you actually start writing.

Write down the initial strengths, weaknesses, opportunities, or threats that come to mind when you consider the objective. Use bullet points to separate items, be specific, and remember that you do not have to write in complete sentences on this chart. To be sure that you explore all applicable points, consider the following questions:

• What does the business do best?
• What do people like about it?
• What draws people to the business?
• What does the business offer that competitors can't or don't offer?
• What puts the business at a disadvantage?
• Consider employee feedback and customer reviews: Are there any items that multiple people have identified as issues?
• In what areas does the business have less resources than competitors?
• Why do potential clients choose a competitor over you?
• What areas would you like to improve?

Be honest as you assess the business's weaknesses. Consider what aspects put your business at a disadvantage or what factors limit your growth potential. If you shy away from identifying weaknesses in this step, your SWOT analysis will not be effective or beneficial. Although it can be painful to identify weaknesses that are currently holding you back from personal or business growth, identifying and exploring these areas will give you the opportunity to improve. If you are uncertain if an item should be classified as a Weakness or a Threat , remember that Weaknesses are internal (things within the business that you can work to change) and Threats are external (things you have little or no control over). Also, accurately identifying weaknesses might help you recognize potential opportunities and/or threats.

Opportunities

• Are there any potential market trends that suggest growth in your field in the coming year?
• Does the business have any possible partnerships or sponsorships on the horizon?
• Is the business considering expanding or developing new product lines or specialties?

In addition to any obvious opportunities, look at the strengths you've listed and see if there are any ways that you can turn strengths into opportunities.

• Is the business affected by government policy? If so, are there any potential policy changes in the future?
• What obstacles prevent you from doing more business or making more sales? Be specific and list them all.
• Do you have periods of unreliable cash flow that threaten the business?
• Does the weather or season affect the business?

Once you have listed all the strengths, weaknesses, opportunities, and threats, prioritize the results in each category from most impactful to least. Prioritizing your results in each of the four categories will help you visualize each item's importance so you can see how it relates to the other areas.

Writing the SWOT analysis paper

Now that you have filled out the SWOT chart and prioritized your SWOT results, you have the basic information to begin drafting your SWOT analysis paper. As with any professional paper, start with a strong introduction and state your objection and the focus of your SWOT analysis. In the next four paragraphs, describe the Strengths, Weaknesses, Opportunities, and Threats that you prioritized on your SWOT analysis chart. If you have more items for each category than can comfortably fit in a paragraph, consider condensing your list. As you review the lists in each category, eliminate redundancies and consolidate similar items. If you still have too many items to fit in one paragraph after condensing, include one to three bullet points per paragraph, and try to keep the paragraphs balanced. For example, if you write three paragraphs for strengths, try to write three paragraphs for the other three categories as well.

Once you have identified and described your SWOTs, you can use your SWOT analysis chart to develop strategies and create a plan to achieve your business goals. The analysis is the most essential part of the SWOT analysis paper, because in this portion you will create action items and develop plans that can lead to future success. Assess each of the four areas (Strengths, Weaknesses, Opportunities, and Threats) and look for commonalities or links between the categories. Some things to consider during this step:

• Can you use one of your strengths to address a threat?
• Look for ways to use your strengths to minimize your weaknesses.
• How can you use your strengths to seize growth opportunities?
• Is there a way to use your strengths to overcome threats?
• Are there any weaknesses that you can address and eliminate?
• Can you balance out a weakness by pursuing one of your opportunities?
• Are your weaknesses preventing you from capitalizing on opportunities?
• Are your weaknesses enhancing the likelihood that the business will suffer from a threat? If so, look to your strengths and see if there is a way to draw from your strengths to reduce the potential impact of the threat.

As you find connections between the bullet points in the four quadrants of your chart, start writing to generate ideas that you can turn into action. You can come back to edit these sentences and perfect these ideas later, but go ahead and record the thoughts now so you do not miss any potential connections. As you identify how different bullet points relate to each other, prioritize items that will generate revenue or reduce expenditure. Now, assess the action items that you have identified and put them in the order that makes the most sense to you. You can arrange your action items in the order that you would like to address them, or you can arrange them in the order that would make the most financial impact on the business. Organize the paragraphs in this section of the paper in your preferred order.

Now that you have performed a comprehensive SWOT analysis and identified action items to enhance strengths and reduce weaknesses, write a strong conclusion paragraph summarizing the most important findings. Keep in mind the purpose of your SWOT analysis paper here: If you intend to share this information with potential investors, make sure that you present a clear vision for growth and that you are realistic about how you will address weaknesses and potential threats. The crucial last step for any paper is to proofread, edit, and revise as needed. Now that you have completed your SWOT analysis and identified action plans, consider if applying a SWOT analysis to another aspect of your business or area of your life. Make a note in your calendar and conduct another SWOT analysis on this issue in six to twelve months so you can measure progress towards your goals.

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Home — Essay Samples — Business — Swot Analysis — SWOT Analysis Good Example

Swot Analysis of Mcdonald’s Corporation

• Categories: Mcdonald's Swot Analysis

About this sample

Words: 941 |

Published: Jun 5, 2019

Words: 941 | Pages: 6 | 5 min read

Table of contents

Introduction, swot analysis of mcdonald’s.

• One of the top 10 international brands.
• Food quality and taste.
• Brand value.
• Advanced technology.
• Limited employee satisfaction.
• Poor Franchise Management.
• Low product diversification.
• Reasonable price meals.
• Innovative products.
• Delivery and online orders.
• High competition.
• Health conscious customers.

Opportunities

• Bertelsen, B. (2012). Everything You Need to Know About SWOT Analysis. In B. Bertelsen, Everything You Need to Know About SWOT Analysis (p. 10). Newmarket: [Newmarket, Ont.] : BrainMass Inc. 2012.
• Elliott, M. (2018, august 06). These Are the Cheapest Meals You Can Order at McDonald’s. Retrieved from https://www.cheatsheet.com/: https://www.cheatsheet.com/money-career/these-are-the-cheapest-meals-you-can-order-at-mcdonalds.html/
• FONTINELLE, E. (2020, june 03). McDonald's: A History Of Innovation. Retrieved from https://www.investopedia.com/: https://www.investopedia.com/financial-edge/0410/mcdonalds-a-look-back.aspx
• Food Safety and Quality. (2017-2019). Retrieved from https://corporate.mcdonalds.com/: https://corporate.mcdonalds.com/corpmcd/scale-for-good/our-food/foodsafety.html
• GREENSPAN, R. (2017, February 05). McDonald’s SWOT Analysis & Recommendations. Retrieved from http://panmore.com/: http://panmore.com/mcdonalds-swot-analysis-recommendations#:~:text=Low%20product%20diversification%20corresponds%20to,U.S.%20and%20other%20Western%20economies.
• Gupta, S. (2019). McDonald’s SWOT Analysis(2019). Retrieved from https://bstrategyhub.com: https://bstrategyhub.com/mcdonalds-swot-analysis/
• Guttmann, A. (2020, August 14). McDonald's: brand value 2006-2020. Retrieved from https://www.statista.com/: https://www.statista.com/statistics/326059/mcdonalds-brand-value/
• Haddon, H. (2020, july 28). Coronavirus Pandemic Squeezes McDonald’s Profit. Retrieved from https://www.wsj.com/: https://www.wsj.com/articles/coronavirus-pandemic-squeezes-mcdonalds-profit-11595934000
• Kazan, R. (2015, January 29). McDonald’s losing battle for more health conscious consumers. Retrieved from https://america.cgtn.com/: https://america.cgtn.com/2015/01/29/mcdonalds-losing-battle-for-more-health-conscious-consumers
• Khandelwal, R. (2019). Must-Know: McDonald’s Has Got Tough Competition. Retrieved from https://marketrealist.com/: https://marketrealist.com/2019/11/must-know-mcdonalds-has-got-tough-competition/
• MATYSZCZYK, C. (n.d.). McDonald's Has A Massive New Problem That Could Ruin Everything the Company Is Trying To Do. Retrieved from https://www.inc.com/: CHRIS MATYSZCZYK
• McDonald's coorporation. (2017-2019). Food Safety and Quality. Retrieved from https://corporate.mcdonalds.com/: https://corporate.mcdonalds.com/corpmcd/scale-for-good/our-food/foodsafety.html
• McDonald's corporation. (2017-2019). Food Safety and Quality. Retrieved from https://corporate.mcdonalds.com/: https://corporate.mcdonalds.com/corpmcd/scale-for-good/our-food/foodsafety.html
• McDonald's corporation. (2017-2020). Get McDonald’s Delivered on Uber Eats and DoorDash. Retrieved from https://www.mcdonalds.com/: https://www.mcdonalds.com/us/en-us/mcdelivery.html
• REIFF, N. (2020, August 06). 10 Biggest Restaurant Companies. Retrieved from https://www.investopedia.com/: https://www.investopedia.com/articles/markets/012516/worlds-top-10-restaurant-companies-mcdsbux.asp
• Shewan, D. (2020, april 20). How to Do a SWOT Analysis for Your Small Business (with Examples). Retrieved from https://www.wordstream.com/: https://www.wordstream.com/blog/ws/2017/12/20/swot-analysis
• Team, B. t. (n.d.). SWOT Analysis How to Develop a Strategy For Success. Retrieved from mindtools.com: https://www.mindtools.com/pages/article/newTMC_05.htm#:~:text=SWOT%20Analysis%20is%20a%20simple,advantage%20of%20chances%20for%20success

Should follow an “upside down” triangle format, meaning, the writer should start off broad and introduce the text and author or topic being discussed, and then get more specific to the thesis statement.

Provides a foundational overview, outlining the historical context and introducing key information that will be further explored in the essay, setting the stage for the argument to follow.

The body of each paragraph builds an argument in support of the topic sentence, citing information from sources as evidence.

Should follow a right side up triangle format, meaning, specifics should be mentioned first such as restating the thesis, and then get more broad about the topic at hand. Lastly, leave the reader with something to think about and ponder once they are done reading.

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