Target SWOT Analysis | SWOT Analysis of Target

by Shamsul
SWOT Analysis of Target
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Target SWOT Analysis | SWOT Analysis of Target


Target (history & facts)  by George Dayton in 1902. The Target Corporation is reputed merchandise that is very popular due to its discounted offerings, loyalty offerings, and luxury everyday essential items. The success of this company is due to its effective supply chain network, innovative strategies, and advanced technologies. These ingredients of success result in the exponential growth of Target. Their online presence and customer-centric approaches are also contributed to its success. If you want to learn about this company’s success then you have to read Target SWOT analysis. Let’s discuss the strengths, weaknesses, opportunities, and threats of Target Corporation.


Company Name:  Target Corporation

Founder:  George Dayton (corporation), John Geisse (store)

Year founded:  June 24, 1902; (corporation), January 5, 1962; (store)

Headquarter:   Minneapolis, Minnesota, United States

CEO:   Brian C. Cornell

Industry:  Retail

Type: Public

Area Served: USA

Number of locations (2020): 1880 stores

Employees (2019): 359,900

Annual Revenue (2019): US$ 75.36 billion

Profit | Net income (FY2019): US$2.937 billion

Products: Health and beauty products; clothing and its accessories; bedding; electronics; shoes; food; jewelry; lawn and garden; furniture; pet supplies; toys/games small appliances.

Brands: Target, SuperTarget, Target Greatland, TargetExpress, CityTarget,



SWOT Analysis of Target | Target SWOT Analysis

Strengths of Target (Internal Strategic Factors):


  • Huge Variety of Products:

Target is a one-stop-shop because it offers a huge range of products such as apparel, accessories, home décor, pharmacy, grocery, and so on. You can buy these products from their online channels. This kind of wide variety of products makes it a highly powerful brand.

  • Strong Brand Status:

The best thing about Target is that they offer the latest, fashionable, and high-quality products at reasonable prices. These things attract the customer and that’s why they have a strong brand position and customer base. Mostly lower and middle-class people love to shop from Target due to its discounted rates.

  • Best Shopping Experience:

The stores of Target are highly versatile and you will feel relax while shopping. They have a better and well-clean floor as compare to Walmart. This type of environment really attracts customers.

  • Branded Apparels:

Target provides a better shopping experience for customers with designer and branded clothes. Their clothes and other apparel items are highly durable and outstanding. They offer these designer clothes at a discounted price.

  • Joint Venture with Starbucks:

The partnership between Starbucks and Target proved beneficial for both companies. Both companies earn more profits due to this partnership.

  • Philanthropy:

Target spends 5 percent of its profit on charity such as kids’ education, food drives, and many more. This kind of philanthropy makes it a patriot brand in the eyes of customers.

  • Successful Distribution System:

Target currently has 40 distribution stores. They also collaborate with local delivery services. So, we can say that they have a successful distribution system.

  • Strong Presence in the US Market:

In the US, they have a robust presence. With 1855 stores in America, they are leading the chart that’s why they have a strong presence in the US.

  • Useful Inventory Management:

They have useful inventory management that works to reduce the danger of spoilage, decline sales, and many other risks. They also work to build the growth of the company. It is a major strength of Target.

  • Online Services:

Recently, they launched a remarkable app ‘’Cartwheel’’ for online shoppers. With this app, customers can check the new products, place their orders, and also check the prices of products. It is a useful addition to the company’s growth and strengthens its market presence.


Target SWOT Analysis | SWOT Analysis of Target

Weaknesses of Target (Internal Strategic Factors):


  • Costly:

According to Business Insider, Target charges more than 15 percent for groceries. It is a huge amount because Walmart offers the same products at discounted prices. This thing can cause a huge loss in its profits and also disturbs its fan-following.

  • Weak Data Security:

Nearly 70 million consumer’s data was stolen including their debit and credit card information in 2014. This thing eroded the trust of customers and Target faces many lawsuits and a decline in its profits.

  • Limited Global Presence:

Target has no strong global presence and they are limited only to the US. They opened 133 stores in Canada but due to lack of strategies and inexperience, they had to shut down their operation in Canada. This weakness is the biggest failure of the company.


SWOT Analysis of Target | Target SWOT Analysis

Opportunities for Target (External Strategic Factors):


  • Partnership with CVS:

CVS Health had attained the company’s pharmacy and clinic section for 1.9 billion dollars in 2015. Now, this section is totally managed by CVS. Now, customers can easily access different health-related products from the stores of Target. Target should make this type of partnership in order to increase its position and revenue.

  • Small-format Outlets:

They are running their small-format stores successfully in colleges and universities. However, these stores are very small in terms of their size but very profitable for the company. In fact, It’s a big opportunity for Target to open this kind of small-format stores in different college campuses and high schools.

  • REDcard Program:

They recently launched the REDcard program which is basically a reward program for customers. Target should expand this program in order to attract customers so that they can make purchases to win rewards. This kind of thing can be beneficial for the company.

  • Delivery Service:

They also started a grocery delivery service to offer same-day delivery. The process is similar to Amazon and Walmart’s delivery service. In this way, they can expand their reach and increase market share.

  • Diversify Brands:

It is really important for Target to diversify its brand portfolio by acquiring a private label brand. In this way, they can earn more profits and carry the biggest margin. This opportunity can diversify its reach and market presence.


Target SWOT Analysis | SWOT Analysis of Target

Threats of Target (External Strategic Factors):


  • Fierce Domestic Competition:

There are several big companies like Walmart, Home Depot, and many more are giving tough time to Target. They offer the same variety and products at much better rates. They can be the biggest threat to the company’s profitability and also impact its market share.

  • Changing Needs of Customers:

Due to having a wide range of products, it is really difficult to understand the changing needs of customers. As many people love to make purchases from online channels but some people love to shop things by going to the store, so it can be difficult to know the customer preference.

  • Failure to Distinguish:

It is really hard to differentiate between products from different sources. Many counterfeits offer the same product at a lower price that can badly impact the image and growth of Target.

  • Economic Recession:

If the American economy faces any turbulence it also impacts the company’s profit because they heavily depend on the US market. This major threat is not good for Target Corporation.

  • Weak Barrier to Entry:

To be very honest, it is really easy to enter this business. Target should aware of counterfeits and fake companies that offer almost the same but replica products.


Target SWOT Analysis | SWOT Analysis of Target


No doubt, Target is one of the most successful retailers in the US. They have a strong customer base due to their affordable and best quality offerings. It is really important for Target to expand its global presence and address its problems so that it can diversify its market share. They have potential because they are doing well in the US.


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