Target Organizational Structure

Target has three main competitors and the level of competition is highly intense. Its main rivals include Wal-Mart stores, Home Depot, Seers and Costco Wholesale Corp. All of them produce similar products as well as offer almost the same services to their consumers. Naturally, the organization would need a strategy that helps it to stand out and to distinguish it from its competitors, thus, Target's positioning was based on more than just pricing; it incorporated quality, style, and trend. This was the differentiation strategy that was consistently applied since the launch of the organization.

According to Kantar Retail, most of Target’s shoppers are five years younger on average than its rivals, and make approximately 23% more ($68,957) per year. That means it has to consistently offer something different and appealing; it emphasizes more on the latest-trend apparel, eye-catching home décor and exclusive designer merchandise than its competitors. This results in a willingness to pay a bit more for items, and individuals who are not as price sensitive. Moreover, this successful utilization of the differentiation strategy has created a brand loyalty among the customers. According to a study performed by Maritz Research, 20% of Target's customers, referred to as "guests," are highly loyal to shopping at Target, they are on average younger, better educated, and more affluent. Customers of Target also prefer to shop at a place where their friends and family are likely to shop, and they are not price sensitive.

It is often difficult to determine the overall organizational structure of a major organization such as Target Corporation. Target stores, however, can be observed and analyzed and based on that, they appear to be organized according to function. Within that functional structure, management and technical tasks are broken down into regional and store level activities. Every Target store is headed by a Store Team Leader, his/her responsibilities are overseeing the employees, and deals directly with the Executive Team Leaders. They are responsible for either Food, Sales Floor, Guest Experience, Asset Protection, Human Resources, or Logistics, and in each of these departments, there are no less than ten members. Every facet of a Target store’s departments is also headed by a Team Leader. If they are in the Food Department, there will be a Team Leader for Bakery, Produce, Deli, Starbucks and other divisions, depending on the size of the store,