This research presents a strategic analysis of Target Stores, Inc., a wholly owned subsidiary of the Dayton Hudson Corporation (Value Line Investors Service, 1990). Target Stores operates within the discount segment of the retail department store industry (Value Line Investors Service, 1990). The findings of this research are presented in two major discussions. The first discussion provides a description and an analysis of the industry, while the second provides a description and an assessment of the firm's strategy.
DESCRIPTION AND ANALYSIS OF THE RETAIL
DEPARTMENT STORE INDUSTRY, WITH ANEMPHASIS ON THE DISCOUNT SEGMENT
The description and analysis of the retail department store industry, with an emphasis on the discount segment, covers four major areas of interest. These areas, which are discussed separately, are (1) industry characteristics, (2) structural factors, (3) competitive structure, and (4) marketing.
The retail department store industry as a whole is a mature industry. One segment of the industry, the old line, full price, general department store, is in the decline stage of its life cycle. The discount segment of the retail department store industry is no longer new within the chronological context. Nevertheless, the discount segment may accurately be said to be in an emerging stage of its life cycle, because sub segmentation is still in process within this industry segment. Discount department stores began as simply a low price, low frills version of the old line, general department store. Over the years, sub segmentation within the discount segment has spawned fashion discount department stores, and both non brand name and brand name discount department stores. Currently, a resegmentation of the discount segment is occurring on the basis of product quality and product selection, which also means that the current resegmentation is closely associated with price hierarchies. Target Stores ...