Comprehensive SWOT Analysis for Target Company

In the previous article, we examined the SWOT Analysis of Adidas which is one of the world’s leading retailers. Today, we will analyze the SWOT of Target Company

Key Summary

Topic Key Points
Target’s Strengths
  • Broad product selection
  • Strong brand positioning
  • Enhanced customer shopping experience
  • Large fashion and accessories business
  • Starbucks partnership
  • Community involvement and philanthropy
  • Efficient distribution system
  • Significant U.S. market presence
  • Effective inventory management
Target’s Weaknesses
  • Higher pricing perception
  • Lagging in technology
  • Data security breaches
  • Lack of global reach
Target’s Opportunities
  • Leveraging middle class purchasing trends
  • Not positioning as a discount retailer
  • International expansion
  • Expanding groceries and eco-friendly products
Target’s Threats
  • Intense retail competition
  • Rising business costs
  • Inability to differentiate
  • Vulnerability to economic downturns


About Target

In the year 1902, Target was established as a company in Minnesota, United States. The firm is renowned for offering its consumers distinctive products at low prices. It offers products such as luxury items and other everyday necessities.

The organization’s systematic approach to company administration has created fresh avenues for future expansion. Because there are digital platforms, it is easier for customers to buy things on the platform.

For the purpose of this article, we are going to consider the major targets of Target’s strengths, weaknesses, opportunities, threats, and other internal factors that have contributed to the general development of the company.

SWOT Analysis for Target

Comprehensive Target SWOT Analysis


The advantages of a business are determined by its strengths. These things give Target an advantage over its rivals. Listed below are Target’s strengths:

A Huge Selection of Products

All of these things can be found in one place: a pharmacy, groceries, designer clothes and accessories, electronics, and sports gear. Their digital platforms also provide a wide selection of products and complementary assortments for the benefit of their customers.
This year, Target was one of the few stores that made money when people rushed to buy the things they needed.

Though income from fashion, accessories, home décor, and sports goods decreased, the firm reported a more than 50% increase in same-store sales owing to an increase in demand for groceries, consumables, and other basic commodities.

Brand position

Customers can purchase attractive, high-quality goods at cheap prices from this brand. Target’s intended audience is middle-and upper-class families with a yearly salary of $64K or more.

A Customer’s Shopping Experience

Customers at Target have a better shopping experience than at Walmart because of Target’s superior layout. Target has a variety of features, including improved shopping carts, cleaner stores, and many more.
The firm’s special methodology has helped it achieve tremendous success in tough times. Target’s store-centric fulfilment method led to a 278 percent growth in the first half of 2020.

The fact that over 90% of Target’s online purchases were quickly completed in-store shows that the company’s investment in the shopping experience and customer fulfilment is producing results.

Fashion accessories

Target partners with high-end fashion designers in order to provide its clients with a wide range of fashionable options. The “clothing and accessories” division generates around 20% ($15 billion) of their overall sales ($75 billion).

Starbucks Partnership

Target is currently driving more customers to the company, which simply shows that Target’s collaboration has proven to be a successful one.

Charitable work in the community

The company’s numerous charitable contributions, sponsorships, and philanthropic acts cannot be overemphasized. The Target Foundation has been donating 5% of company profits (4 million per week) to the local area since 1946 in order to support educational initiatives for children, food drives, contingency planning, and disaster relief.

Effective Distribution System

Target Corporation relies on 40 distribution facilities and delivery carriers to distribute the vast bulk of its products.

Market Presence

Target has a significant presence in the U.S. market. Over the years, the company has opened 1844 locations throughout 49 states. Many of these stores are located in Florida, California, and Texas.

Inventory Management That Works

In order to reduce wastage, missed sales, and stock markdowns, several restocking and product management approaches are used by the company. Target used inventory planning technology in 2019 in order to avoid stock loss and disrupt backroom operations without affecting customer service. In addition, the store plans to implement a robotic method in its warehouses.

Target Corporation’s Weaknesses

Customers’ reactions and management concerns reveal an organization’s flaws. It’s generally a lack of resources or a shortcoming in those resources that causes a company to perform less well than its rivals.

The High Cost of Prices

Often, Target is portrayed as an upmarket department store by its competitors. As a result of a survey undertaken by business leaders, Target’s pricing as the country’s largest competitor is causing anxiety at Walmart and other malls.

Sector of Technology

The Target Corporation has the money to expand its technology sites, but it lags behind in this field as well. So, the vast majority of Target’s competitors in this area are a big challenge for the company.

Data Security

A number of high-profile data breaches have plagued Target during the last year. Customers’ account information must always be safeguarded at all times. Furthermore, Target offers credit facilities, and those accounts have been hacked, revealing even more financial transaction information about customers.

Lack of Global Reach

Even though Target has been around for almost a century, it hasn’t expanded internationally as other global corporations have. Even if they’re unbeatable in the U.S., they aren’t on the world stage.

Between 2011 and 2015, the company opened 133 retail locations in North America but was ultimately compelled to shut them all down. Because it was one of Target’s biggest international flops, the business opted against it.


A company’s success depends on its ability to recognize and capitalize on new possibilities. Regaining stability in a more competitive market is possible by using their strengths to capitalize on opportunities. Target needs to make the most of the opportunities that come its way because the retail industry is always changing in order to stay relevant.

Due to the obvious purchasing power of the US middle class, consumers are increasingly looking for products that offer good value for their money. Many clients will be drawn to their budget-friendly items as a result of this strategy.
Target’s profits can rise if they correctly play their greatest strength: that they aren’t a retailer for the “broke.”

International expansion is a sure way to keep the company growing. Additionally, they might search for nations that are able to accept them and provide them with a strong consumer base.
Target’s unique items are already well known to customers. They have the ability to offer a wide variety of groceries. As environmental problems get worse, they might also step up their efforts to be more eco-friendly.


Only when there are fewer threats on the path to expansion can a company successfully utilize its opportunities. As a retailer, Target faces specific threats that inhibit its expansion. If they are able work to mitigate the effects of these threats, they can quickly find ways to grow.


Competition and low-margin are the two words that best describe Target’s business model. Market share is being eroded by the presence of big rivals such as Costco, Kroger, Walmart, Home Depot, and the like.
Target began its holiday season promotions in October in order to compete with Amazon in the e-commerce market. For the whole month of November, nearly 1 million extra offers were added to its Black Friday price. As the rivalry grows, the firm will have to spend more in order to keep up, which will lead to lower earnings.

Increase in Expenses

The growing expenses of business operations caused a 64% drop in Target’s Q1 earnings. Despite a 141% increase in online sales and a 11.3 percent increase in quarterly revenue to $19.37 billion, the corporation spent around $500 million to keep safety precautions up to date.

Failure to differentiate

Target Corporation’s inability to distinguish itself among its competitors may be a problem. They may lose their brand recognition as a result of a shift in consumers’ purchasing habits toward emotionless and the cost of internet purchases.

Vulnerable to Economic Downfall

Macroeconomic considerations have a significant impact on Target sales. In times of economic uncertainty, Target’s business suffers as well, as the majority of its shops are located in America.


What is Target SWOT analysis?

The SWOT analysis of Target demonstrates how the company has capitalized on its strengths to build a lasting brand and expand its business.

What is Target’s strategic plan?

Our vision is to co-create with our guests, partners, and communities an equitable and regenerative future. Target Forward is the name of our sustainability strategy, which focuses on leveraging our size and scale to benefit people, the environment, and our business.

What are Target goals?

Target seeks to enhance affordably priced, inclusive, and inspiring owned, national, and emerging sustainable brands. Target is dedicated to a distribution chain that is sustainable, inclusive, and just and fair and equal for all employees.

Who is Target’s biggest competitor?

GameStop, Dollar General, Marshalls, Best Buy, Amazon, Kroger, TJX, Macy’s, and Walmart are among Target’s competitors and comparable companies.


Collaborations with other businesses, a vast selection of products, customer loyalty programs, and private label goods have all contributed to Target’s rise to the top of the American retail industry and solidified the store’s position as a household name. Target relies on two key factors: a lack of urban addresses and global expansion.

They will be able to keep their enviable position and increase sales by addressing these factors, as well as by implementing a robust security system to protect customer privacy and by tapping into the digital marketing realm.

Resources Used For This Analysis



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