l of the credit programs it has to offer. The company has the second largest credit portfolio among retailers that issue store credit cards. Credit card numbers continue to rise and have already exceeded 30 million guest cards. Customer loyalty programs help build stronger relationships with consumers and increase patronage. Target uses its credit program to help promote community involvement by donating 1% of all purchases made on the cards to local communities. Target Corporation currently does not have very many weaknesses. Its growing profits and earnings per share are spelling out success for the company, and its objectives are being met. Target stores are surging, but its department stores and Mervyn’s do not have the same appeal to customers. Marketing strategies for those two divisions are weak and the company will need to make them more appealing to consumers for them to continue to make profits. Competitive Position of the FirmTarget Corporation is the fourth largest retailer after Wal-Mart, K-Mart, and Sears, so the company must make sure it is taking advantages of any opportunities to increase its market share. Target must also promptly address threats that may affect future earnings of the company. Although the company has began introducing new product lines and offering a wider variety of products, the company needs to focus on more customer loyalty and creating new ways to present its products to gain more of the market share.Statement of ProblemThe main issue facing Target Corporation is what it should do with its department store and Mervyn’s divisions. The company has considered closing or selling the divisions several times over the past few decades. Although both divisions continue to make a profit as shown in Exhibits 2 and 3, the company could be better off focusing all of its attention on the Target stores. On the other hand, maybe the company needs to take a different approach with the di...
