Target Research Paper Example | Topics and Well Written Essays - 2250 words

Target - Research Paper Example Product quality plays an important role in determination of performance of companies that gain success in the long term (Foss & Knudsen, 2003). In this paper, the issue of maintaining good quality of products by Target Corporation has been discussed as a method of defeating the company’s rivals (Ehmke, 2008). Customers prefer making purchases from Target stores since they get the appropriate products that they are searching for at the most reasonable prices (Nadia, 2001). The key strategies that have led this company up the success ladder are excellent marketing and advertising strategies, high brand value developed through strategic promotion of brand and intense product differentiation (Franco-Santos, et al., 2007). Being one of the top ranking companies in the US market, the company faces steep competition from other dominant firms in the market, such as, Wal-Mart, K-Mart and Costco. However, recently, the firm has been facing certain problems, such as high price of product s than market standards and very close substitutes of its products. The main issue faced by Target Corporation is that whether it should follow the strategy of maintaining high quality of its products. The two contesting arenas that arise in this regard are high quality and high price. Target is considering high quality for its products while it is out wedged by competitors that offer low priced products. This paper is dedicated to the discussion of bringing solution to this problem. Different possible solutions to this problem would be discussed. These solutions are provided after considering the current business environment in which the company operates. Although, all the possible solutions are proposed on the basis of the some analysis of the company situation and overall industry condition, these refer to diverse aspects. However, in order to gain advantage over its nearest rivals, the company would have to identify the loop holes in which it is directly lagging behind its compe titors. In this case, the problem is that the company is facing price war. Competitors, such as Wal-Mart, K-Mart and Costco, which are known across the globe for their low price items, are gaining edge over Target Corporation, since the prices charged by Target are higher than the products that they offer. In this case the company might aim at reducing cost so as offer the products at lowered prices. However, price wars can be sustained only up to a certain limit, beyond which prices cannot be reduced for maintaining profitable business. Hence, it would have to take some other option for maintaining its competitive position in the industry. These possible solutions are discussed in the next section. Possible solutions to the problem In the current business world, companies are concerned about the gaining an extra edge over other market players. An important aspect that helps in assessing the performance of a particular company in the market is the extent to which customers would be attracted more towards a particular brand than other brands available in the market. It is imperative for every business to develop a base of loyal customers that would increase over time (Smith & Wright, 2004). Niche markets are growing rapidly in the modern world and they are increasing awareness of customers about product features and characteristics of products that they