Comparison of Target’s Business Model with Meijer’s
Target is known for having the best business strategies or model in the world. It was placed as
the second largest discount retailer in the country and of course the first is Wal-Mart. Whereas,
Meijer is also a grocery and discount retailer and was ranked at No. 19 on Forbes 2014 list of
“America’s Largest Private Companies“. While Target, due to the products of high-quality, has
been included in Fortune’s “World’s Most Admired Companies” list. It is famous for providing
customers with affordable and low-priced or cheap but of a high-quality products unlike other
retailers who only focuses on giving cheap and high-discounted products but of a poor-quality.
That explains why Target was well-distinguished from other retailers. Competition was not very
high. Meijer on the other hand, are often compared to its other rival Wal-Mart for following the
discount superstore format, actually Meijer is its pioneer which was founded in the year 1934.
Meijer was facing inclined pressure due to the high competition with warehouse club stores,
drugstores and supermarket chains such as Kroger. Its discount system is pretty much similar to
of Target’s. However, Target offered both everyday essentials and fashionable items at a low
price and more updated in trend compared to Meijer or any other similar companies. The utmost
competitive plus point of Target is its aesthetic appeal which other companies including Meijer
lacked of. Its products are more upscale and fashion forward. This factor played a role in ranking
Target’s way above Johnson & Johnson companies and PepsiCo. It was also one of the most
smitten brands in US. Meijer prioritizes more on the grocery department. To improve its
grocery, the chain has added fresh produce and meat departments. Through, the company’s
“Home Grown” initiative, they have been purchasing some of the produce locally. In Holland,
Michigan, and in year 2013, the company obtained a local family-owned dairy to contribute milk
to its stores in Michigan. In order to enlarge the dairy plant, Meijer planned to invest about $8
million.