Target products Video

Technology

Software is an important part of any company.  For Target software enables them to improve their cost analysis, manage employees and customers, and allow them to find new and better ideas to bring in the market. The overall process for developing software is called systems development life cycle (SDLC). This cycle has the following components:

                       

1.      Planning  – involves establishing a high-level plan of the intended project and determining project goals

2.      Analysis – involves analyzing end-user business requirements and refining project goals into defined functions and operations of the intended system

3.      Design – involves describing the desired features and operations of the system including screen layouts, business rules, process diagrams, pseudo code, and other documentation

4.      Development – involves taking all of the detailed design documents from the design phase and transforming them into the actual system

5.      Testing – involves bringing all the project pieces together into a special testing environment to test for errors, bugs, and interoperability and verify that the system meets all of the business requirements defined in the analysis phase

6.      Implementation – involves placing the system into production so users can begin to perform actual business operations with the system

7.      Maintenance – involves performing changes, corrections, additions, and upgrades to ensure the system continues to meet the business goals

          Each step in the cycle is very important to the overall quality of your software.  There are some different approaches to executing this process, and they are:

1.      Agile – aims for customer satisfaction through early and continuous delivery of components developed by an iterative process

2.      Waterfall – an activity-based process in which each phase in the SDLC is performed sequentially from planning through implementation and maintenance

3.      Rapid Application Development(RAD) – emphasizes extensive user involvement in the rapid and evolutionary construction of working prototypes of a system to accelerate the systems development process

4.      Extreme Programming – breaks a project into tiny phases, and developers cannot continue on to the next phase until the first phase is complete

5.      Rational Unified Process(RUP) – provides a framework for breaking down the development of software into four gates

a)      Gate One: Inception

b)      Gate Two: Elaboration

c)      Gate Three: Construction

d)      Gate Four: Transition

6.      Scrum – uses small teams to produce small pieces of deliverable software using sprints, or 30-day intervals, to achieve an appointed goal

          These processes are meant to slash budgets and allow for the smoothest working software for the company.  The methods are to ensure quality while keeping cost down to a minimum.

MicroStrategy

          Target Corporation is the award recipient in the Data Scalability category. The second-largest general-merchandise retailer in America, Target has adopted MicroStrategy as one of its enterprise-wide business intelligence tools. Target uses MicroStrategy’s software to analyze over 100+ terabytes of vendor, sales, and product data stored in its data warehouse. Thousands of team members in marketing, distribution centers, supply chain, merchandising, finance, and store management will be able to access Target’s BI applications and run reports. In addition, thousands of vendors will be able to access a MicroStrategy-powered Web site to follow trends in supply chain operations, track purchase orders, and analyze the sales performance of products at Target stores.

         

           The end result will be enhanced efficiency and an improved guest experience. Target Corporation currently operates 1,685 stores in 48 states and also has a fully integrated on-line business through Target.com.

Technology Departments

IT STRATEGY AND ENTERPRISE SERVICES

          This team drives technology strategic planning and the establishment of common IT practices. Partnering with the business and other technology teams, this group identifies and governs the appropriate technologies and technology practices for use at Target, ensuring a tight alignment between the strategies of the business and the investments in IT. Specific areas in this team include Technology Strategy & Planning, PMO, and Enterprise Architecture.

GUEST DEVELOPMENT

          The Guest Development team supports key guest functions as well as application development efforts focused on the guest experience. Through innovative uses of technology, Guest Development supports internal teams like Stores, Target Financial Services, Point of Sale and Health Care Systems in their efforts to create competitive advantages.

SUPPLY CHAIN DEVELOPMENT

           The Supply Chain Development team supports a competitive company edge using key functions and application development. The group also supports other teams, including Distribution/Transportation, Merchandising/Merchandise Planning, Merchandise Presentation and Product Design & Development.

          The Corporate Systems Development team supports key headquarters functions and application development needs using innovative technology and methods. They also support other teams, including Finance, HR/Payroll, Property Development, Assets Protection and Corporate Intranet. BUSINESS INTELLIGENCE, MARKETING TECHNOLOGIES,Target India  TARGET.COM

          This newly formed corporate team works to create a competitive advantage for BI, Marketing, off-shore and online initiatives through innovative use of technology. Partner teams include Marketing Systems, Target.com, Application Development for Business Intelligence and Target India.

INFRASTRUCTURE AND SUPPORT

          The Infrastructure and Support team engineers and implements infrastructure solutions and provides production systems assistance for all Target properties. Teams include Enterprise Support Services, Client Services, Enterprise Tools, Distributed Database, Operations, Engineering, Technology Acquisition and Vendor Management.

Business Strategy

           Target is one of the biggest stores in the U.S. and is the biggest competitor to Walmart. Walmart's strategy is based on cost leadership and it excels in achieving this goal. For Target For Target to focus on cost leadership, it would mean a head to head battle on prices with Walmart and could end in a disappointing loss. Instead, Target has chosen a differentiation strategy. Through this strategy, Target tries to achieve the ultimate shopper experience. They're "guest" oriented -which is what they call their customers.

        Target gives their guests a great looking store, a fast, fun and friendly team to help, and a fast check out whenever they're ready to leave the store. The items that they offer throughout their stores are also a big part of their differentiation strategy. They partner with many designers to assure that their merchandise has a fit for all styles and ages. 

        Throughout every department in Target, you'll find plenty of different designer items that reach out to many different kinds of people -whether it's Giada's cookware or Mossimo's stylish clothing. The Minneappolis Business Journal quotes "Target's enduring blend of style and mass discount proves that value and hip are not mutually exclusive."


Buyer Power
          
          Target’s buyer power is high due to many different retail stores that carry similar items and services like Walmart or Kmart.  Target has found ways to reduce this buyer power by providing excellent customer service and an amazing shopping experience. This provides a switching costs for customers because they would give up on the added benefit Target gives to its customers for another company which will not have the same “guest” oriented environment.  

          Target also has their very own credit card which they call a “Red Card.” This credit allows guest to receive 5% off with every purchase- an added incentive for customers to return to Target through a loyalty program.  Plus, 5% of Target’s income gets donated to projects that help the neighborhood.  Targets across the country have been renovating school libraries with this 5% income.

Supplier Power
          
         Supplier power is low due to the many different companies that can offer similar products.  If a firm would like to have its product inside of Target, they need to bargain with Target.  Everything is purchased in bulk so the price is usually reduced.  If for any reason a particular company decides to increase their prices, Target can easily switch to another company for a better price.  Firms would not want to pass up the opportunity of having their products at Target because of the increased customer loyalty that will keep their products selling.

Threat of Substitute Products or Services


           For Target the threat of substitute products or services is high due to the many retail stores.  Wal-Mart being the number one competitor for Target in terms of pricing.  Target resorts to their differentiation strategy to reduce this threat.



Threat of New Entrants


         For this particular industry, the threat of new entrants is high due to the number of retail stores that open up continuously.  For Target, it's not much of a threat due to their history and ability to deliver results in profitability.  Target has recently introduced a P-fresh area to their stores, which carries fresh produce alongside their market are of food in order to increase their competitive edge.  Through this, they increase the customer traffic in their stores and will also increase their customer loyalty.
 
Rivalry among Existing Competitors

          The rivalry in this industry is high.  Every company wants to drive their sales and increase their profits.  Some try to compete on prices while others like Target have a blend in their competitive edge using low prices combined with a great guest oriented experience.


Streamlining Initiatives

        Target Corporation has chosen Compaq's Zero Latency Enterprise architecture to redefine its customer relationship management model and provide a foundation for increasingly innovative guest services.The Target implementation of ZLE, will enable the retailer to optimize and leverage customer interactions across its enterprise by ensuring real-time access to information. This technology creates opportunities for unified guest services by integrating touch points whether a customer is shopping in the store or on-line.

        The retail chain's first distribution center opened in Fridley, Minnesota, in 1969. It included a computerized distribution system and was known as the Northern Distribution Center. During this time, the chain consisted of seventeen stores after having expanded into Oklahoma and Texas.

On August 9, 2004, Target announced to their suppliers that they were going to perform a trial on the effects of radio frequency identification on the efficiency of supply chain management in the Dallas/Fort Worth Metroplex. This trial involved one Target distribution center and ten nearby Target stores. Here, tags would be placed on the bar codes of pallets and cartons to track the goods from the suppliers to the distribution center, and from the distribution center to the stores.

E-Commerce

Target corporation quietly developed an e-commerce strategy that involved managing its own online distribution. It bought Rivertown Trading Company, a Twin Cities-based mail-order firm, in 1998 for $120 million to handle fulfillment, marketing, and distribution services for the e-commerce efforts of all the corporation's retail units. Online retailing gained a larger profile in early 2000 with the formation of a separate e-commerce unit called Target Direct. New store brand web sites were launched later that year.

Also, Amazon is providing Target with its proprietary search engine, order-fulfillment and customer-service systems, and one-click shopping application, which lets customers pay for merchandise selected from the Target, Marshall Field's, and Mervyn's sites via one electronic shopping cart. In exchange, Amazon gets an undisclosed percentage of all sales from Target's retail sites, as well as annual fixed fees, an Amazon spokeswoman says, adding that the company wants to leverage its E-commerce expertise through similar arrangements with other companies, too.

Target corporation uses a kiosk service, in that if you go on to the consumer website, you will be able to track items by price, most recent items and by most popular items being sold. Any and every customer has access to all of their product information.

Introduction

         

 Target's mission is to make the company the preferred shopping destination for their guests by delivering outstanding value, continuous innovation and an exceptional guest experience by consistently fulfilling their Expect More. Pay Less.^® brand promise.

History

          Target Corporation was created by George D. Dayton, a banker and real estate investor from New York City. In 1881, Dayton decided to explore the growing Midwest markets. After several years in banking and real estate, he came to the conclusion that Minneapolis offers the strongest opportunities for growth. He purchased land on Nicollet Avenue and created the Dayton Dry Goods Company - what is known as Target Corporation today. 

         

George D. Dayton

          Dayton's personal principles shaped the new store, including his belief of "the higher ground of stewardship." His store soon became  known for dependable merchandise, fair business practices, and a generous spirit of giving. As President, he remained active in the store's management up until his death in 1938. His son and grandsons took over leadership and begin to grow the Dayton Company into a nationwide retailer.

          In the 1950's, the Dayton family paves the way for new leadership. Seeing the need for superior managerial talent to succeed in a competetive retail environment, they adopt philosophies that encourage advancement and establish organizational success at a top priority.

          In 1983, all direct family connection to Target ceases when all of the grandsons retire after 80 years of keeping the corporation within the family line.

CEO

          Gregg W. Steinhafel is Chairman of the Board, Chief Executive Officer and President of Target. He began his career at the company as a merchandise trainee in 1979 and advanced through a variety of merchandising and operational management positions during the subsequent 20 years. In August 1999, Mr. Steinhafel became President of Target. He was given the additional title of Chief Executive Officer in May 2008 and Chairman in February 2009.

         

Gregg Steinhafel in front of the

Target logo.

          In his more than 30 years at Target, Mr. Steinhafel has gained meaningful leadership experience and retail knowledge. As Chief Executive Officer, he is responsible for determining the company's strategy and clearly articulating priorities as well as aligning and motivating the organization to execute effectively and ensure continued success. These capabilities, combined with Mr. Steinhafel's intimate understanding of Target's guests and unwavering commitment to Target's brand, make him uniquely qualified to serve on the Board.