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Organizational Behavior
The organization that will be the object of study is the Target Corporation, one of the large, major discount retailers in the U.S. famous for its catchy advertisements and its commission of relatively well-known designers to create exclusive in-house clothing and furniture brands. As a former employee, I have seen the organization from the inside out, from a retail level upward. However, the recent U.S. recession has hit Target particularly 'hard' as a company (Gregory 2009).
Target's revenue has been decreasing while its primary competitor Wal-Mart's profits have been growing, due to the fact that Target's core consumers are looking for more bargains on necessities, because of the economic downturn. This is a problem for all employees and shareholders. Given the failure or near-failure of other discount retailers like Sears and K-Mart, Target must ensure that it does not have a similar fate (Gregory 2009). The current problem is a symptom of Target's problem of market segmentation -- it does not offer prices...
Target is in a 'middle ground' position -- neither upscale nor bargain-basement in its positioning and pricing. Other companies are regaining a market foothold after the recession and Wal-Mart is thriving, while Target struggles to regain its former position in the market.
This paper will make use of newspapers and general and business periodicals (which are available online but are also available in print) as well as business journals and texts, with a specific focus on market segmentation and positioning theory, as defined by Michael Porter. Porter's generic strategy model (1980) suggests Target has failed to position itself as either sufficiently inexpensive or in a niche market for a specific market segment. According to Porter (1985) having a 'middle ground position' without exercising cost leadership or differentiation is one of the most common reasons companies fail. The critical research question is as follows:
How can Target reposition itself within the…
References
Black, S. (April 7. 2008). "Target CEO Ulrich gets $12.2 million in 2007." Minneapolis /
St. Paul Business Journal. Retrieved July 11, 2011 from http://www.bizjournals.com/twincities/stories/2008/04/07/daily5.html?ana=from_rss
Duff, Mike. (2009, January 28). Target reorganizes workforce attitude to cope with recession.
Minneapolis / St. Paul Business Journal. Retrieved July 11, 2011 at http://www.bnet.com/blog/retail-business/target-reorganizes-workforce-attitude-to-cope-with-recession/158
Time Magazine. Retrieved July 11, 2011 at http://www.time.com/time/business/article/0,8599,1885133,00.html
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