In 2022, Target generated over $109 billion in revenue, mostly from its stores, compared to $572.7 billion form Walmart, coming from stores, e-commerce and Sam’s Club.
| Business Model Element | Target | Walmart | Similarities | Differences | Competitive Advantage |
|---|---|---|---|---|---|
| Customer Segments | Families, millennials, urban and suburban | Families, value-conscious shoppers, rural areas | Both target families and offer a range of products. Target has a presence in urban and suburban areas. Walmart caters to value-conscious shoppers and is often located in rural areas. | Target’s focus on urban and suburban locations. Walmart’s strong presence in rural areas. | Urban and Suburban Presence (Target), Rural Presence (Walmart). |
| Value Proposition | Style, convenience, quality | Low prices, convenience, one-stop shopping | Both offer convenience and a variety of products. Target emphasizes style, quality, and a curated shopping experience. Walmart is known for low prices and one-stop shopping. | Target’s emphasis on style, quality, and curated shopping. Walmart’s focus on unbeatable low prices and offering a wide range of products under one roof. | Style and Quality (Target), Low Prices and One-Stop Shopping (Walmart). |
| Channels | Physical stores, e-commerce | Physical stores, e-commerce | Both have a presence in physical stores and e-commerce. | Target’s approach to physical store design and aesthetics. Walmart’s focus on large-format stores and distribution centers. | Store Design and Aesthetics (Target), Large-Format Stores (Walmart). |
| Customer Relationships | Loyalty programs, customer experience | Price competitiveness, convenience | Both build customer relationships through loyalty programs and a focus on customer experience. Target emphasizes these aspects. Walmart’s relationships often revolve around price competitiveness and convenience. | Target’s approach to loyalty programs and enhancing customer experience. Walmart’s strong emphasis on offering the lowest prices and convenience to its customers. | Loyalty Programs and Customer Experience (Target), Price Competitiveness and Convenience (Walmart). |
| Key Activities | Merchandise curation, private label products | Procurement, supply chain management | Both engage in merchandise curation. Target offers private label products. Walmart focuses on efficient procurement and supply chain management. | Target’s efforts in merchandise curation and offering exclusive private label products. Walmart’s emphasis on procurement efficiency and supply chain management for cost savings. | Merchandise Curation and Private Labels (Target), Procurement and Supply Chain Efficiency (Walmart). |
| Key Resources | Brand reputation, private label brands | Supply chain, distribution network | Both rely on brand reputation. Target has a portfolio of private label brands. Walmart’s key resources are its extensive supply chain and distribution network. | Target’s strong brand reputation and investment in private label brands. Walmart’s robust supply chain and an extensive network of distribution centers and stores. | Brand Reputation and Private Labels (Target), Supply Chain and Distribution Network (Walmart). |
| Key Partnerships | Fashion designers, exclusive partnerships | Supplier relationships, manufacturers | Both have partnerships with suppliers and manufacturers. Target collaborates with fashion designers and offers exclusive partnerships. Walmart maintains strong supplier relationships. | Target’s focus on fashion designers and exclusive partnerships. Walmart’s strong supplier relationships and focus on direct procurement. | Fashion Designers and Exclusive Partnerships (Target), Supplier Relationships (Walmart). |
| Revenue Streams | Retail sales, e-commerce | Retail sales, e-commerce | Both generate revenue from retail sales and e-commerce. | Target’s emphasis on style and curated products. Walmart’s focus on price competitiveness and a wide range of products. | Style and Curation (Target), Price Competitiveness and Variety (Walmart). |
| Cost Structure | Marketing, store maintenance | Procurement, logistics, store maintenance | Both incur costs related to marketing and store maintenance. Target’s costs include marketing for style and curation. Walmart focuses on procurement and logistics efficiency. | Target’s marketing costs for style and curation. Walmart’s emphasis on cost-efficient procurement and logistics to maintain low prices. | Marketing for Style (Target), Efficient Procurement (Walmart). |
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Read Also: Walmart Business Model, Walmart SWOT Analysis, Walmart Mission Statement, Costco Business Model.
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