Target SWOT Analysis –Weaknesses
With much strength, their also comes some weaknesses. Though the business has strength to constantly struggle for market domination, the organization has weakness, which may be affecting the business.
1. The over emphasis upon the quality makes its products rather expensive then compared to competitors like Wal-Mart therefore it does not have that competitive advantage in the industry, as well as a lack in not having many locations when compared to Wal-Mart.
2. It is not diversified ...view middle of the document...
4. Target does not play any music in its centers; the atmosphere inside the store is too silent to shop. Target also does not endorse services or items throughout its public address system.
5. Lax Quality control since they procure their products from numerous vendors and thus have little quality control. This can be seen in a number of recalls that occurred, such as activity cart toys in April 2007, frequent company recalls are indicative of lax quality controls, which in turn hurts the company’s image by lowering consumers’ confidence loyalty. Another problem with Target is that they keep a low overhead of items, so they run out of items very often.
6. One of its limitations is their lack of full ability to foresee cost escalation that influences their trade.
7. The company does not provide attractive wages to the employees; insurances and certifications regarding labors are missing. High employee turnover at store level. Target faces high turnover with its employees, most of its employees are entry-level or part-time workers. Turnover is therefore affected by external forces. Target’s ability to meet labor hours while retaining their profitability is heavily affected by the economic conditions of the country.