Target Move To Canada Case Study

Although Target was already greatly loved by Canadians who made trips to the boarder to shop in the U.S stores, expanding target in Canada in 2013 was a failure due to the fact that there were empty shelves, not having enough inventories, horrible store locations, pricing, and competition with Wal-Mart which had been in Canada since 1994. Target move to Canada was executed in a poor way. Target wasn’t ready, and rushed to opened 133 stores at once. Target dealt with supply chain problems which includes quickly built technology system which made it hard to track inventory, which then led to empty shelves, and gave customer dissatisfaction. Canadian consumers were disappointed that products that were available in U.S stores weren’t available in Canada stores, and
Operational costs might go high. Furthermore, we have to deal with other competitive retailers, which had already existed way before we enter such as Wal-Mart. Another risk is creating a brand image will be hard as customers already experienced the previous service, and already existed negatively reputation of the brand. Consumers are already aware of the failure of the business. Also, It will be hard to find good employees because business was already failed once, and 17600 employees were layoff previously. People might not want to work with a company when they are not sure what might happen again in the future. Pricing is also another risk to face, because it is difficult to figure out what kind of price to place on our products can be tricky. We don’t want to be selling too high or too low compare to other retailers. Lastly, people’s taste and preferences on a product or service can change in a second. All of that above can make us result in not getting any profit financially. However, we have come up with some recommendations to avoid those risks and to get