Devoted to Managers and those that seek to improve their management skills

The announcement by Wal-Mart (WMT) that it will compete largely on price for the holiday season has everyone talking about the way it will impact their nearest competitor - Target (TGT). The truth is that I think Target has positioned itself so well for years that it really shouldn't affect them that much.

Target has built a strong moat that will be very difficult to cross as Wal-Mart found out when it attempted to focus on one of Target's stregths: trendy clothing. So far it hasn't been even close to succeeding. The wrong focus also might have been part of the reason for Wal-Mart's poor quarter as well.

When you consider that same-store sales for Wal-Mart were only 1.5 percent while Target grew a healthy 4.6 percent for the quarter, it's not Target that is struggling for growth.

The other strength that Target has is the particular customer they serve, who have more disposable income and higher credit ratings and usage. They blow Wal-Mart away in this category.

Some analysts asserted that "Wal-Mart can only hurt Target badly if Target's credit-card revenues slip."

While other stores will be impacted by the pricing strategy of Wal-Mart, overall, Target won't be one of them. The Target management has understood the retail market they serve and have put up great barriers-to-entry that will be very difficult for competitors to break through.