Target Size And Power

Target size and power is a major strength of theirs. When you see the statistics and rankings you can tell that they have a huge presence. They are a Fortune 50 company. They also ranked in the top 100 of the most valuable global brands in 2014. Furthermore, they ranked in the top three US retail brands list. Target has stores all over the US. There are about 1800 stores, which brought revenue of over $72 billion. Like Wal-Mart, they sell a variety of merchandise (OneSource). Also like Wal-Mart Target has enough power to bully its suppliers into selling their products at a low price. One of the biggest reasons anybody shops at a store are because of low prices. Target is able to sell merchandise at a low price and that keeps the customers coming
They tried to expand into Canada recently and suffered greatly. Earlier this year Target had closed all the stores in Canada. This horrible experience would cause most companies to never attempt an international expansion again. However, I believe that it is worth another shot. Unlike their previous attempt with Canada I think they should expand elsewhere. There are many markets that could be a potential candidate. With that in mind Target will have to research and choose carefully which one they should enter. In my opinion I think India would be the best market to enter, but they can’t wait too long to make the decision. A lot of big and powerful companies have already expanded globally and are being more successful than before. As the world gets smaller and smaller expanding internationally might become necessary in order to succeed. If they can expand successfully it will become a huge move that might change Target in a good
Licensing is “a contractual arrangement in which a company receives a royalty or fee in exchange for the right to use its trademark, patent, trade secret, or other valuable intellectual property (Dess).” Target can work with another store in India. It would be the safest approach. This would save a lot of money for Target. After they do the initial research to see what the people of India like they can start finding a good company to license through. Target would give the company some of their products for a fee and see if it sells. This way they minimize the cost and might even earn revenue. Since, Target has so many partnerships with designers they can start selling sarees. Sarees are clothes that a lot of the women wear and are known for. They can continue to license for some months to see if expanding into India would be a good idea. If it does turn into a great idea Target can start expanding even more through other mode of