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Why Is Target's Decided To Go To Canada

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Target is a business that is operating as a legal entity separate from any of their owners. Some of the advantages of a corporation such as Target and other corporations can include an unlimited lifespan for the company. However, when Target decided to do business in Canada, the company was not able to experience this advantage as they had to close all 133 stores after a couple of years into Canada. While entering into Canada, Target used these methods to get involved in international business. Target is a wholly-owned subsidiary, essentially meaning that an independent company is owned by a foreign parent company, considered as one of the higher risk ways for entering an international market.

Target's attempt to enter into Canada to go from …show more content…

Target Canada is one of many organizations that looked to meet customers’ demands and corporate financial goals through importation and wanted to do so to bring the essence of Target in America across to Canada. However, they learned over time that importing these goods was legally and fiscally difficult. The company realized its legal complications, and could not import specific items into Canada due to distribution rights of third-parties, as well as not use their domestic distribution network in the United States in Canada. On top of that, a lot of unforeseen and overlooked costs came into play with acquiring the ability to import products from the United States. Expenses such as in transportation, wages, taxes, duties, and the products themselves caused for higher budgetary adjustments for the company and ultimately affected the price tags on these goods in Canadian stores for the …show more content…

Walmart offers the same kind of products as Target's and has a well-established presence worldwide, including Canada since its expansion in 1994. Already two decades ahead of Target, Target was in for some hefty competition when deciding to enter Canada. Alongside Walmart are many other chains such as Giant Tiger, Shoppers Drug Mart, and Sears who sell similar products as Target with slight changes, making them monopolistic competition. It does not appear that Target was as conscious or concerned about these retailers as they were to Walmart. Unfortunately for Target, Canada’s marketplace is not small and cannot be easily dominatable like in other countries where oligopolies (few who offer slightly different products) and monopolies (single seller who controls governed marketplace)

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