Reason for Failure of Target Canada Samples †MyAssignmenthelp.com

Question: Discuss about the Reason for Failure of Target Canada. Answer: Rush Opening as A Reason for Failure of Target Canada Target Canada which had opened 133 stores closed down in less than two years disheartening its huge range of customers who had responded to the close down as a totally heart-broken one. The CEO of the company, Brian Cornell thought of closing down the company as he has found the company would not gain any profits even at the close of 2021. The Canadian expansion was declared in the month of January 2013 when Target bought a total of 220 leases of Zellers. The one of the reasons for the failure of the Target is hugely the rush opening of the company (Chibba). The locations of the stores in some places were often not accessible for the local customers. Since the company has launched a huge number of stores in a small span of time, the merchandise produced by the company failed to attract customers in the newly launched stores (Boone, Louis and Kurtz). A huge rush for opening several stores at a time, disrupted the supply chain of the company and as a result the company failed to bring in trendy merchandise in their stores. When Target opened its 124 stores in the Canadian market, it has also launched three national distributors. This had created a massive drawback for the company as it could not meet the demands of the customers and hence failed to fulfill its business terms. Even before Christmas it failed to attract customers to their stores and the stores were mostly empty. Thus, it can be concluded by saying that the expansion policy of Target is an influential reason for the shut-down of the company. Measures to Prevent Such Failures The failures of Target Canada as discussed above could have been avoided if the organization had executed its expansion policies in a much systematized manner. The first major preventive step that could have stopped the closure of the company is the identification of the customers. The company failed to identify the demographical advantage of the country and hence the products of the company could not attract customers as it had expected while launching its stores (Steele, Jana, Maserolle, and Bartlett). Had the company recognized the economic classes of the company, it could have easily avoided the failure. The second major step that caused the failure of the company was the Targets choice of collaboration. The companys collaboration with exclusive brands of both US and Canada led to the deflation of the company in Canada. The closedown of the company could have been escaped had it chosen the right business partners. The third step that could have stopped the failure if the company had concentrated its business only on the merchandise (Vachon, Kabatoff, and Quinn). In a country where there are competitors like Walmart and Loblaws selling grocery items, Targets attempt to sale groceries was a total failure for the company. Hence, in the conclusion it can be mentioned that there was a lack of co-ordination of powers and policies in the company. The entire process of execution of the companys model was not at all acceptable for such expansion. The major step that could have stopped the shutdown of the company if Target could have executed its expansion in a much organized and slower approach. References Boone, Louis E., and David L. Kurtz.Contemporary marketing. Cengage learning, 2013. Chibba, Michael. "Contemporary perspectives on international business and culture."International Journal of Business and Globalisation14.4 (2015): 408-419. Steele, Jana, Angela Maserolle, and Mel Bartlett. "Target-Benefit Plans in CanadaAn Innovation Worth Expanding." (2014). Vachon, Paris W., Chad Kabatoff, and Robert Quinn. "Operational ship detection in Canada using RADARSAT."Geoscience and Remote Sensing Symposium (IGARSS), 2014 IEEE International. IEEE, 2014.