Companies are living organisms that need to keep moving to survive. Without a concerted focus on developing their organizations, owners can drown in the ever-changing market, dooming their companies to failure.
Success comes, however, when companies like Target stay active and intentional by expanding their product lines, refreshing their brands, and acquiring new customers.
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Redefining chic
By striving to “fulfill the needs and fuel the potential of [its] guests,” Target lives its claim that consumers should expect more and pay less.
Target’s story officially began in 1962 with a single store in Roseville, Minnesota, and has since expanded to employ 347 000 team members in more than 1790 retail stores and 38 distribution centers across the United States.
The brand nurtures a diverse customer base and is proactive in responding to changes in its customers’ tastes and habits. These factors have been essential to the company’s ability to redefine chic and beat the most recent recession, and they’ve affectionately earned it the nickname “Tar-zhay.”
Hitting the bull’s-eye
What can other businesses learn from Target to stay adaptable? Here are three tactics to keep your business practices moving in the right direction.
1. Expand wisely
With expansion, timing is everything. Before moving forward, a careful assessment is critical. Is your company performing to its abilities? Can the business handle an expansion? Does the organization have the right people and structure?
In the early 1900s, The Dayton Company, now known as Target Corporation, was recognized for its reliable merchandise, honest business practices, and generous spirit. Yet the visionary leaders at that time knew they needed to adapt to see continued success.
In the 1960s, as a way to strengthen relationships with its customers, the company underwent a risky expansion. It transitioned from a department store model to the massive discount store we know today, catering to value-oriented guests seeking a high-quality shopping experience.
Expanding can be a tricky decision, especially if your business is new. Startups can lose the battle early if they get too far ahead of themselves. As many as 74 percent of high-growth startups falter because of premature scaling. In other situations, however, swift expansions can be critical to success.
2. Increase market share
The key to growing market share is improving your business in ways that entice new clients to use your services or buy your products. How can you create the ultimate customer experience? Have you increased name recognition and brand strength? How can you decrease costs and lower your price points?
When you can answer those questions permanently (not just through a gimmicky promotion), word will get out that you’re a wonderful company to give business to because you care about your customers and the products you sell. It’s only a matter of time before the customers you’re converting are coming from a competitor. That’s two birds (client acquisition and competitor loss) with one stone.
In 2014, Target increased its market share by introducing “Made to Matter,” a collection of more than 120 exclusive new products from natural, organic, and sustainable brands. The line made it easy for customers to locate products made with simple, safe ingredients that they could feel good about purchasing without sacrificing price or performance.
3. Diversify within
It’s not always the big ideas that allow for the greatest growth. Sometimes, it’s just a glaringly obvious next step. Which growth outlets suit your particular market? How can you focus on industry-specific development?
Brian Cornell, who became Target’s CEO in August 2014, began pushing the company to make a series of small improvements to some of its core categories. He decided to make departments like style, baby, and wellness truly distinctive. He also worked to shift the grocery department to feature fresher, healthier options.
His simple solutions seem to be working. Target’s sales have been strong since he started, and foot traffic in stores has improved.
Ideas can and will come from many different directions. Try conducting a SWOT analysis to identify your business’s strengths, weaknesses, opportunities, and threats. This assessment can solidify your company’s position and determine your next steps. It’s also important to incorporate customer feedback into the strengths and weaknesses you identify and to encourage employees and partners to make suggestions, too.
Sitting still while the world changes around you is not an option. Learn from Target’s adaptability and foresight and apply the principles to your company’s situation. How can you incorporate these ideas into your business quickly and efficiently?
