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Running head: BUSINESS STRATEGY Business Strategy Name of the studentName of the UniversityAuthor Note
1BUSINESS STRATEGY Business-level strategy will be addressing in what ways, an organization will becompeting in a specific industry. In this context, it needs to be stated that there are four kinds ofbusiness 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 realizingthe development by directing the efforts in respect of available customers through the use ofTarget Corporation’s current retailing format. These scopes will be having the involvement ofeither customer from the present target market who are not patronizing the retailer in the currentscenario or devising approaches that will be getting the present customers for visiting the retailerfrequently or purchasing additional products on every visit (Klettner 2014). In addition, theapproach regarding market penetration will be including the aspect of opening increasing numberof stores within the target market as well as to keep the present stores open for longer period oftime. Other approaches will be having the involvement of displaying the products for increasingthe impulse purchases as well as providing appropriate training for the salespeople in respect ofdoing cross-sell (Bhardwaj 2013). In regard to market expansion growth opportunity, it can be stated that this businessgrowth strategy will use the the retail format that is having the existence in the new segments ofthe market. For instance, Target Corporation is steadily opening up new stores outside ofAustralia. The plan is associated with increasing the number of outlets for moving intoincreasing number of foreign countries (Agrawal 2016). In regard to the retail format development growth opportunity, it can be stated that thereis the scope where Target Corporation will be developing a new retail layout – a layout having a
2BUSINESS STRATEGY varied retail mix – in respect of the same target market. Multichannel retailing is consideredbeing an example of retail layout development, since a bricks-and-mortar retailer offers aninternet channel as a new layout, along with its current channel. Target Corporation did theemployment of the retail layout development strategy for growth through the operation ofvarious discount store layouts that are catering generally to the same target markets (Peteraf2014). In regard to diversification growth opportunity, it can be stated that it is the one where aretailer like Target Corporation will be operating a new retail layout that is directed toward amarket segment that the retail organization is not serving currently. The opportunities related todiversification are either considered being related or unrelated. In respect of a related diversification growth opportunity, the present target market ofTarget Corporation or retrial layout of the organization will be sharing something in commonwith the new scope. This cohesion might be entailing the entailing the aspect of making purchasefrom the same vendors, functioning in the same locations through the use of similar distributionor management information system, or advertising in the same newspapers for same kind oftarget markets (Verbeke 2013). On the other hand, an unrelated diversification will be lackingany harmony within the present business as well as the new business. Moreover, regarding vertical integration it can be stated that it will be describing thediversification by Target Corporation into wholesaling or manufacturing. For instance, it mighthappen that Target Corporation will be going beyond the process of designing their private-levelmerchandise 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
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