Competitive Environment and Digital Strategic †Free Samples

Question: Discuss about the Competitive Environment and Digital Strategic. Answer: Introduction: Business-level strategy will be addressing in what ways, an organization will be competing in a specific industry. In this context, it needs to be stated that there are four kinds of business growth opportunities that might be pursued by the retailers such as market penetration, market expansion, retail format development as well as diversification. In regard to market penetration growth opportunity, there is the involvement of realizing the development by directing the efforts in respect of available customers through the use of Target Corporations current retailing format. These scopes will be having the involvement of either customer from the present target market who are not patronizing the retailer in the current scenario or devising approaches that will be getting the present customers for visiting the retailer frequently or purchasing additional products on every visit (Klettner 2014). In addition, the approach regarding market penetration will be including the aspect of opening increasing number of stores within the target market as well as to keep the present stores open for longer period of time. Other approaches will be having the involvement of displaying the products for increasing the impulse purchases as well as providing appropriate training for the salespeople in respect of doing cross-sell (Bhardwaj 2013). In regard to market expansion growth opportunity, it can be stated that this business growth strategy will use the the retail format that is having the existence in the new segments of the market. For instance, Target Corporation is steadily opening up new stores outside of Australia. The plan is associated with increasing the number of outlets for moving into increasing number of foreign countries (Agrawal 2016). In regard to the retail format development growth opportunity, it can be stated that there is the scope where Target Corporation will be developing a new retail layout a layout having a varied retail mix in respect of the same target market. Multichannel retailing is considered being an example of retail layout development, since a bricks-and-mortar retailer offers an internet channel as a new layout, along with its current channel. Target Corporation did the employment of the retail layout development strategy for growth through the operation of various discount store layouts that are catering generally to the same target markets (Peteraf 2014). In regard to diversification growth opportunity, it can be stated that it is the one where a retailer like Target Corporation will be operating a new retail layout that is directed toward a market segment that the retail organization is not serving currently. The opportunities related to diversification are either considered being related or unrelated. In respect of a related diversification growth opportunity, the present target market of Target Corporation or retrial layout of the organization will be sharing something in common with the new scope. This cohesion might be entailing the entailing the aspect of making purchase from the same vendors, functioning in the same locations through the use of similar distribution or management information system, or advertising in the same newspapers for same kind of target markets (Verbeke 2013). On the other hand, an unrelated diversification will be lacking any harmony within the present business as well as the new business. Moreover, regarding vertical integration it can be stated that it will be describing the diversification by Target Corporation into wholesaling or manufacturing. For instance, it might happen that Target Corporation will be going beyond the process of designing their private-level merchandise to the ownership of factories that is manufacturing the products (Armstrong 2015). However, if the retailers do the integration through the manufacturing of the products, they will be undertaking investments that are considered having suitable risk factor since the necessary skills required for making the products are varying from the ones that are related with the aspect of retailing them. Another business strategy in respect of Target Corporation is the integrated cost differentiation strategy. This business strategy has provided assistance the discount store in delivering superior ease. Target Corporation will tend to offer the customer with new means of suitable retail shopping. The retail organization is offering price-matching in respect of its competitors as well as incentives for the customers with loyalty programs like Red Card Rewards. Moreover, the successful use of a differentiation strategy is depending not simply towards providing distinct characteristics but also to communicate the value of these attributes to the potential customers (Blackburn 2013). Therefore, advertising as well as specific brand building are considered significant regarding this strategic aspect. However, there are certain disadvantages in regard to the differentiation strategy as well. One of the major threats regarding the use of differentiation strategy is that the customers are not having the willingness to pay any additional amount for obtaining the distinct characteristics that an organization will try building its strategy around. In certain cases, customers might simply be having the preference for a cheaper substitute (Mithas 2013). In conclusion, it can be stated that at present the key focus of Target Corporation will be towards the customer, from refreshing programs in respect of loyalty to boost personalized contributions to streamline accessibility in respect of such offers. In the recent times, Target Corporation has also seen an industry-leading development in digital. The organizations signature segments are having a three times growth rate in comparison to its overall business because of the investment regarding quality as well as differentiation. The retail organization is also targeting its business related to grocery as well changing methods as well as practices for boosting the choice of product as well as convenience regarding the product. Therefore, the differentiation strategy of the retail organization within the market will be driven by a more effective shopping experience that is focused upon effortlessness as well as encouragement. Moreover, Target Corporation is having an approach that is co nsidered being channel-agnostic regarding business growth. Also, continuous advancement in technological aspects, supply chain as well as inventory management will be creating an experience related to shopping that is rooted in effortlessness as well as inspiration. The successful use of a differentiation strategy is depending not simply towards providing distinct characteristics but also to communicate the value of these attributes to the potential customers. Reference Agrawal, H.O., 2016. An Approach to Business Strategy. InHandbook of Research on Promotional Strategies and Consumer Influence in the Service Sector(pp. 154-182). IGI Global. Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015.Marketing: an introduction. Pearson Education. Bharadwaj, A., El Sawy, O.A., Pavlou, P.A. and Venkatraman, N.V., 2013. Digital business strategy: toward a next generation of insights. Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business, strategy and owner-manager characteristics.Journal of small business and enterprise development,20(1), pp.8-27. Klettner, A., Clarke, T. and Boersma, M., 2014. The governance of corporate sustainability: Empirical insights into the development, leadership and implementation of responsible business strategy.Journal of Business Ethics,122(1), pp.145-165. Mithas, S., Tafti, A. and Mitchell, W., 2013. How a Firm's Competitive Environment and Digital Strategic Posture Influence Digital Business Strategy.MIS quarterly,37(2). Peteraf, M., Gamble, J. and Thompson Jr, A., 2014.Essentials of strategic management: The quest for competitive advantage. McGraw-Hill Education. Verbeke, A., 2013.International business strategy. Cambridge University Press.