Coach

Suppliers

     Suppliers provide goods or services, so to have a good relationship with the supplier. Target supermarket has a variety of suppliers, rather than a single supplier to provide products also have high availability of supply. Supplier's bargaining power in the retailer industry environment is weak because there are many suppliers in the retail industry.

Buyers

     There is no single buyer they are mutual. Target supermarket diversity of products to be bought and large distribution of products in store. Accounting to Target Corporation “the near future Target is likely to gain market share as customers use their increased discretionary income to trade up to Target’s “cheap chic” brands”(Hahn, Kwak and Palys). Also the large population of buyers applied force a strong force on Target and the retail industry. The weak force of buyer diversity and the weak force of small individual purchases counteract such condition. In effect, the bargaining power of buyers is weak in influencing Target and other retail firms.

Entry

Target must address the strong-intensity threat of new entrants. Small retailers can enter the market and compete on the basis of convenience, location. So the company needs to have good supply contracts, contracts and good location, accounting to “Discount retailers are vertically integrated and have centralized buying power. This gives them the ability to create economies of scale” (Tongue, Mcdonald, Doutkevitch, Midgley and Munro).

Internal Rivalry

Target industry based on discount retail, It has many competitors. For example, main competitor is Wal-Mart, Kmart, kohl’s and Mejer’s. These companies have a fierce competition accounting to “73% of the 5,681 discounter stores (Wal-Mart, Target, Kmart) are found in metropolitan markets. In these areas, competition is fierce, with 99% of Target stores within 10 minutes of a Wal-Mart or Kmart. 74% of the metropolitan markets have all three companies competing against each other, but most of the rural markets have only one player”(Hahn, Kwak and Palys)