Target Prerecession Strategy

1.      How was Targets pre-recession strategy vulnerable in an economical downturn?
Targets pre-recession strategy was vulnerable in an economic downturn largely due to its disaccording brand stead that focused on delivering high quality products compared to its counterpart, Wal-mart, which took advantage of its impose pricing positioning during an era when customers were highly price sensitive.
ab initio the CEO of target, Steinhafel, responded to the recession by (1) cutting costs, (2) focusing on the value aspect of Targets Expect more, turn out less fight and (3) expanding selection of grocery items. However wholly of these strategies were either short sighted or ineffective in contributing to the companys bottom line.
The first and moment approaches of cutting costs and expect more, abide less campaign  are reminiscent of a traditional red ocean strategy, in which this case, Target was trying to beat its competition, Wal-martâ€"who dominated the lour price positioning segmentâ€"by attempt to benchmark and adjust their own prices. Even during the hard economic times, customers didnt necessarily associate the value price offerings with Target as much as Wal-mart. While 75% of consumers recognized Wal-marts traditional slogan… only 16 % attributed Expect more, pay less to Target.



This strategy was deemed to be cannibalistic in the extended run since their stock prices and fair share of the market was already declining post 2007.
The third approach was to aggressively accelerate the rollout of nutrition content in stores and thus making its entry in the grocery business to drive the frequency of shopping trips. Since consumers shopped for groceries significantly more often than home and apparel goods, Target leading felt the presence of grocery items could increase feed vocation in to the store and thus further inducing them to deal non grocery items as well. However this was a large and baseless as a pre-recession strategy since the addition of fresh food to...If you want to get a full essay, order it on our website: Orderessay



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