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Target Corporations Case

Essay by   •  December 23, 2012  •  Research Paper  •  1,282 Words (6 Pages)  •  1,430 Views

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A supply chain is very important to an organization. It can and should show the relationship between suppliers, distributors, managers and consumers. This paper would detail how important suppliers and distributions are to an organization's success. And how important a supply chain is within an organization and how managers can utilize the supply chain. It is important that companies such as Target Corporations utilize the supply chain and gain competitive advantages. Target is one of the world's largest retail stores; the first Target was opened in 1962 in Roseville, Minnesota (Target.com). By the end of 1962 there were only four Target and they were all operated in Minnesota.

What is a supply chain?

The supply chain is the relationship between retailers, distributors, transporters and suppliers. A supply chain as the network supplies a specific material to the customer (Borgström, 2012). All these components help the production, delivery and the sale of a products and services that are available to the consumers. There are three key components that make up the supply chain. They are supply, manufacturing and distribution (Wise Geeks, 2012). Supply main focuses are on the raw materials that are supplied to the manufacturing which include when, how and from which destination the materials are traveling from. During the manufacturing steps this is when the raw materials are converted into the final outputs and the distribution make sure the finish products arrive to the organization's shelves for the consumers.

Target's supply chain is the cost leadership over their competitions. The organization sells good quality products for a less price which would be easier for their customers to purchase. According to Porter value chain there are five elements that make up a supply chain. They are

* Inbound logistics- Target should make sure the supplies are scheduled for delivery in a timely manner. And the products are good quality (Riley, 2012).

* Operations- in this step manager should make sure the products are manufactured correctly and the products should not have any mistakes or faults. And all breakable products are packaged in a way they cannot be broken (Riley, 2012).

* Outbound logistics- During this step Target's managers should make sure the received products are correct and ready to be stocked on the shelves for the consumers (Riley, 2012).

* Marketing and sales- Managers and the research and development department will make sure the products are appealing to the consumers whether it is through e-mail, commercials, magazine advertisements and other sources. The advertising should help consumers see why shopping at Target is good choice over the competitions (Riley, 2012).

* Customer service- this step is the crucial step because this would determine if consumers return to the store. The employees should be nice, helpful and willing to help the consumers (Riley, 2012).

Customer needs and wants:

Target products are appealing to the consumers because they look expensive but the products are very affordable. It is important for an organization to specify the products and services based on what the customers' needs and wants are. This would help Target gain a competitive advantage over other retailers. The majority of Target's customers are women and teenagers. So, the stores have bright and appealing items that would make the customers purchase the materials. Target offer clothing and even power tools catered to women.

Some of the problems that could affect customers' needs and wants are the economy, competitors and technology. Because of the wars overseas the prices of the materials have increased and this has affected customers because the pricing has increased they would rather shop at other retailers such as Wal Mart.

Target managers would have to understand and can deliver what the wants and needs are and by doing this customers would continue to do business with the company. The managers and employees should know what products and services Target is selling and are able to answer questions effectively from customers. This would benefit both the customers and organization. Over the last forty years, Target corporations have been providing an affordable and good quality merchandize for the consumers'.

Value Delivery Options:

The value delivery options for Target are in their slogan "Expect more, Pay less." When customers see this slogan they know

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