H.J. Huneycutt

Target: Customer Passion Still Compels Profits

I'd agree with reddog. Target has a lot of unique home products that seem "high quality" for a discount department store. That's one reason why people enjoy shopping there so much. It also has a nice atmosphere, whereas, most Wal-Marts have this third world sweatshop feel to them.

That said, I wouldn't say that this gives Target a "moat". It just gives them a competitive advantage that others could duplicate. The important thing to realize that Target is a trend. It could remain a trend for the next decade or two; then again, maybe it won't.

It's also important to consider that Target's success was largely a product of the consumer mania of the '90s and earlier this decade. Now that they've established a niche, they probably aren't going away any time soon, but that doesn't mean they'll be booming forever. Does Target thrive in an age where consumers are focused on staples and "necessary purchases"? I'm not sure to be honest.

Here's a positive factor in favor of Target that most don't think about --- Wal-Mart is truly a suburban oriented store. Target has had much more success penetrating urban markets. As gasoline prices go higher and the re-urbanization trend continues over the next few decades, Target is positioned much better than Wal-Mart to grow. So, I guess I see a mixed bag with Target.

One thing is for sure --- the history of American department stores is littered with examples of companies like Target that found their niche, gained strong loyalty from customers, and thrived. And most of those companies eventually died. Target doesn't have to be one of the companies, but I see no reason why 30 years into the future, they couldn't be a candidate.

Sub-$300 Laptops: Where the Action Will Be

Very interesting. I've been expecting Linux to gain popularity in a market downturn. It just makes too much sense when Microsoft is trying to extract more and more money out of consumers for products of declining quality. Why not go with the free choice?

I also won't be surprised if more small companies begin option for Linux over Windows.