Target Corporation needs to examine market trends to stay competitive in the retail industry. The company may need to examine its market structure, the market structure of competitors, and the impact of new competitors entering the market to continue existing as a successful company. Analyzing the pricing strategies of the company and their competitors will help them determine if they need to adjust their prices or their strategy to stay competitive. Target will need to look at their productivity and cost structure to determine if they need to change their strategy. If Target wants to continue providing excellent customer service to stand out from competitors, they will need to look at the wages and benefits offered to attract valuable employees. Target will need to adjust their fixed and variable costs and price elasticity of demand as the economy changes. The company will need to look at other companies in the retail industry to determine where Target is strong and where it can improve. Target will need to analyze supply and demand to help decrease cost in the long term. Finally, Target will need to look at the government regulations that it has to or will have to adhere to, to continue its work on being a leader in the retail industry. Target will need to analyze each of these conditions to ensure that they are keeping up with the market trends to remain competitive in the retail industry.
An industry’s market structure depends on the number of companies in the industry and how they compete. Target Corporation is a growth company focused solely on general merchandising. Target tends to prefer markets that have lower retail wages and more households that have children and vehicles. Target also prefers the market with higher incomes, which ultimately results to this extending to markets with higher wage rates. The company also chooses locations in more affluent, urban communities. Target requires a significantly larger...