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Target Porter's Value Chain

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Target seems to have problems with their outbound logistics – they weren’t able to stay organized and they don’t have the right amount of inventory or goods needed for their business, this leads to over ordering and excess goods. This shows problem with their distribution center. As a company they fail to identify Canadian customers needs, failing to do so, will lead to poor sales for their stores. It is understandable that are new to the country, but you would think that with previous experience In the United States it will help prepare them for a market in Canada. The lack of product that is not available in the stores is a problem, especially if Target is trying to compete with a store like Wal-Mart. Wal-Mart is one of the leading stores in Canada, because of their prices and product availability, which helps them to compete with other stores. Target price didn’t seem to match or compare with Wal-Mart prices. This illustrates a poor Procurement for the company. They didn’t have the right purchasing information ahead of time to enable a smooth running business. I feel like Target should focus on developing a better information system and technology by replacing some manpower activities, employees shouldn’t physically have to count inventories in its …show more content…

Although not all of the activities are necessary for all forms of business due to the fact that we live in a different time. Where we rely more on information technology in business. Companies can be successful and function well at any size, because of technology: Porter’s Value Chain was developed for big companies with the mindset of distribution like Wal-Mart. The activities in Porter’s Value Chain that I feel are important are Technological development and Marketing and sales. Those two have a more direct impact on

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