The Target Corporation Competitive advantage

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Target Corporation's Competitive Edge

Target Corporation, the second-largest retailer in the United States after Walmart, has won the hearts of many Americans thanks to the high caliber of services and products it provides. This has made it possible for it to outperform its fierce competitors, Walmart, Sears, and Kmart. This essay will analyze and explain the retail chain's competitive edge before drawing a conclusion about why it has been succeeding despite never changing its business plan since it was founded in the 1960s.

The Efficient Business Model that Sets Target Apart

The target corporation faces competition on multiple levels. First, it has one of the efficient business models in the globe that has never gotten changed since its founding. In the model, the company gets distinguished from its competitors through the provision of high-quality yet cheap products to its customers. The ability to offer high-quality and affordable products to the customers has improved the Target's brand in the U.S., and the company has become many people's beloved in the country and the globe. Also, the company's ability to offer high-quality goods to its customers has earned it a place in Fortune's "World's Most Admired Companies" rank, ranking above big firms like PepsiCo, Boeing and Johnson & Johnson in 2013 (Raheja par.2).

Aesthetic Appeal that Sets Target Apart

The second aspect of competitive advantage for Target Corporation is its aesthetic appeal. The company offers products that trend forward and are more upscale which most of its rivals do not have. The aesthetic appeal has helped it rise above other competitors in the retail industry making it one of the best retailers in the American retail industry.

Emphasis on Quality Differentiation

Furthermore, the company's philosophy formulated by its founder John Geisse concentrates on product differentiation grounded on quality, and this is one of its key success factors. A 1960 research done on the weaknesses and strengths of retail stores in the US by the Geisse found out that most of them had not laid any emphasis on the quality of goods but rather low-priced merchandize. The findings led to the company's decision to offer high-quality products at low prices which attracted a majority of Americans who value quality over quantity (Raheja par.3-4).

The International Expansion of Target Corporation

Target Corporation's presence outside the U.S. has also contributed to its competitive advantage. For instance, its 24 stores in Canada opened in 2013 have given it an opportunity for international expansion. There are also plans to have it open branches in many other countries in the world. Doing this will enable it to get more revenues from countries outside the U.S giving it a competitive advantage over its key rivals, some of which have no business outside the U.S. (Raheja par.4-5).

Exceptionally Competent Staff and Customer Service

Another point of competitive advantage for Target is the exceptionally competent staff it employees. Customers visiting the retail store get to experience entirely different customer services as opposed to visiting some of its main competitions. Most consumers have indicated their willingness to visit a retail store where they know they will get the best experience regarding customer service. This is why most people will prefer visiting a Target store to purchase a good costing the same or less in other stores than do not have exceptional customer services (Leinbach-Reyhle par.3).

The Art of Display and Merchandising

Also, the company has mastered the art of display unlike most of its competitors. Efficient and attractive display at the company ensures that the customers get to buy more than they had planned to buy. Most Target stores have merchandized bins positioned at the points of exit. The containers are filled with merchandize that cost between $1-10 and are positioned in such a way that the customers see them as they enter as well as they leave the store. This assures that the shoppers get to buy those products even if they had no intention of buying them. Compared to most of its competitors, Target's display of merchandize is one that cannot get rivaled (Leinbach-Reyhle par.4-5)


In conclusion, Target has managed to stay on top of its game for long because it has mastered the art of customer care, and also managed to offer products that befit the needs of the customers. Projections show that in the coming years, the company will dominate the retail business in the U.S. and other states of the world.

Works Cited

Raheja, Nikhil. Target: The Best Discount Store. Web. June 10, 2013. Accessed on April 30, 2017.

Leinbach-Reyhle, Nicole. "How Target Stands Out Among Its Discount Store Competitors." Forbes. Web. August 28, 2014. Accessed on April 30, 2017.

March 02, 2023



Corporations Marketing

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Walmart Company Competition

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