Case Study Of Target's Global Expansion

In the face of increasing Globalization, Target wanted to play its part in Global Expansion. It has successfully opened over more than 2000 stores including in USA, India. Canada was next on the list as being the neighboring country, making it geographically close. Also, another English speaking region. Target thought Canada would be easy as compared to other major economies of world to enter into seeing that it was aware of the Canadian culture including their choices of products. Target was also famous among the Canadians who visited United States for their weekly grocery shopping. In any case, Target didn't acknowledged was the Canadian markdown area was an intense market. Moreover, this segment was altogether controlled by our significant rivals: Walmart, Costco, Sears which had been established in Canada from more than recent decades. This solidness gave them an upper hand over us. Subsequently to draw in customers, Target needed to separate itself from other markdown retail locations. The manner by which we could separate was from our excellent client administration and range of items. We tried to make a big impact with opening 124 stores in one full swing two years ago. However, intense competition, empty shelves and distant locations for our targeted population failed to entice shoppers in Canada.

We had achieved a point where, without extra financing it couldn't keep on meeting its liabilities. In basic terms, we were losing cash each day. We also had to focus on strategic initiatives including small format stores in United States. Otherwise our competitors would have eaten us as they were aware about our condition in the Canadian market. As a result, Target Canada would not become profitable until at least 2021. Therefore, for fulfilling the obligation what was right for our company and shareholders, we had to pull