(5 pages of text)
In 2013, Target Corporation, the fourth-largest retailer in the United States, launched its first international expansion by opening 125 stores in Canada. Senior executives expected that Target Canada stores would generate $1 billion in annual revenue. However, by late 2013, after losses of more than $900 million, it became obvious that the Canadian expansion had failed. As a result of the stores’ underperformance, Target has appointed a new president of Target Canada, who is challenged to turn the Canadian stores around. The new president must analyze the situation and decide on the best strategy to provide the highest return in the short term and the best strategic positioning for the long term.
This case is intended to teach retail and international launch strategy. It is suitable for an advanced undergraduate class or an MBA/EMBA class. Objectives are:
- New business development internationally.
- Building a retail infrastructure from scratch including procurement, operations, customer service, real estate acquisition, retail buildout, legal and regulatory restrictions and staffing.
- The importance of goal setting and competitive analysis for marketing managers.
Canada, Large, 2014
$5.30 CAD / $5.00 USD Printed Copy
$4.50 CAD / $4.25 USD Permissions
$4.50 CAD / $4.25 USD Digital Download