Target International Expansion

Target is one of the largest retailers in the United States. Target wants to be able to give guests better quality products for a cheaper price. They also want to be the one stop shop. Target relies on their team members to keep

Wal-Mart’s is one of Target’s biggest competitors, but other retailers are also trying to compete, such as Sears, Dollar General, and Amazon. Although Target caters more to a more upscale clientele, it still carriers many of the same items as Wal-Mart. Target is not able to compete internationally with Wal-Mart since all of stores are in the U.S. but by 2014, they will have about 150 stores

Within every organization there are advantages and disadvantages as well as strengthens and weakness. One of the biggest weaknesses of the Target Corporation is that all of their operations are located in the US. The organization would benefit more if they engaged in business with multinational countries. Wal-Mart has more than 11,000 retail stores in 27 multinational countries. If Target is ever going to move out of their second place position behind Wal-Mart there are going to need to expand globally. The Target Corporation is still trying to recover from the embarrassing financial disaster they made when they tried expanding their brand in Canada. Target spent 1.8 billion for 222 locations in Canada. Unfortunately, this merger

Many discount retailers have come and gone over the years, but Wal-Mart and more recently Target, have employed business models that continually deliver profits, even in the struggling economy of the United states in recent years. Wal-Mart and Target both have expanded rapidly since their inception and while Wal-Mart has become an international retailer with stores in fifteen countries and all over the United States while Target has

Target may have a bigger selection on some products, but their store is such a big hassle. To have a well managed store you need good customer service, a good atmosphere, and low prices. That’s something Target has none of and Wal-Mart has plenty of.

Over the past three years, Target has been focusing on an expansion strategy. Target’s goal is to expand its branches not only across the United States, but also in Canada. In 2011 they opened around 21 new stores around the U.S. In addition, they built smaller format Target store called City Target in crowded downtown areas such as Chicago, Los Angeles, Seattle, and San Francisco. Target’s initial plan for Canada was to open up to 125 stores, but by August 2014 Target opened about 130 stores in Canada.

Target has been around for quite some time and has definitely made some mistakes in the past. Unlike some businesses who consistantly make the same mistakes over and over, Target has moved past these mistakes and learned from them. The company attempted international expanision to Canada in 2011 and with poor planning the expanision failed. Over 124 stores opened within a 2 year period and experienced they experienced several problems with how quickly the transition happened. The locations that they picked were not buildings that supported Target’s merchandising, and the move into Canada happened so quickly that the shelves were not appropriately stocked. The compnay also did not do anything to compensate for the competition that Wal-Mart supplied them with in the Canadian market. With all that being said, Target closed it’s doors in Canada and kept all its retail stores in the United States. Even

Target focuses on store innovation. It designs its stores to build a comfortable and a clean atmosphere to ease shopping operations. The company provides quality products and best services to improve the customer’s business experience, increase sales, and attract potential customers. “Target has succeeded through a differentiation-based strategy in adding elements to the mix other than just price,” Storch said. “There are still customers who will not walk into a Wal-Mart. They find it too disgusting, too dirty, too downscale. ”Target uses new sources to buy their product, which help the business to grow and assure the customers’ demand. For customers’ convenience, the company opened new stores all over the country, especially in the crowded tristate area, to market their brand and generate more sales. Also, Target tries to expand their businesses in the global market by opening smaller stores called “City Target.” These stores are similar to their competitors such as, Wal-Mart,

But if it is going to improve on its recent losses, Target needs to start moving into more developed areas with stores that are suited to providing its customers with the products they want and need, but not be overwhelming for customers. Some of the major problems target will face with this alternative will be costs of development. Land that is closer to larger populations is going to cost more as well as the increase in permits and the cost of contractors to create the right store for the given environment. Another issue Target could face would be choosing which products they should sell in these new stores, because of the limited developmental space available, the products chosen will have to be limited as well. But by moving to more populated areas Target will be able to reach more people and begin competing with the local stores that are taking away its business. Additionally, closer locations will provide additional convenience for its

A firm 's international marketing program must generally be modified and adapted to foreign markets. This international marketing program uses strategies to accomplish its marketing goals. Within each foreign nation, the firm is likely to find a combination of marketing environment and target markets that are different from those of its own home country and other foreign countries. It is important that in international marketing, product, pricing, distribution and promotional strategies be adapted accordingly. In order for an international firm to function properly, cultural, social, economic, and legal forces within the country must be clearly understood.

In my personal opinion, Target should continue to develop a specific portfolio that is specifically targeted to its customer’s needs and likes, while focusing on maintaining the same product quality and variety for each store brand. Through its marketing strategy, the retailer has to assure the consumer they are purchasing the same quality product as if they were buying a national brand at a more affordable price; which at the end is more convenient for the consumer and does not have to sacrifice quality. Target should also expand to the South and Northeast where there are still plenty of attractive locations with no Target presence. This will attract more customers and consequently strengthen its store brands.

Bean There, Drunk That is a popular coffeehouse founded by Adrianna Ho. After obtaining her Bachelor of Commerce Queen’s University, she decided to pursue her entrepreneurial idea created in her Innovation and Entrepreneurship class at Smith’s School of Business. It all started in the summer of 1982 when she finally opened her first coffee house café in Toronto, Ontario. The locals loved it and by 2000, Bean There, Drunk That expanded to other provinces in Canada like Quebec and British Columbia.

There are always business risk when it comes to expanding a company, especially from an international standpoint. There are many strategic risk that needs to be evaluated in order to expand the company successfully. Examining the possible risk of foreign currency exposure, basic functions of international banking/financial market, support of long term financing of operations, and assessment of opportunities that can be implemented within the company. There are risk on three dimensions of international finance, economic trends of the country, impact of globalization and monetary system. All of these situations will be discussed in this paper.

Diversification is a method of investing that been shown to increase portfolio return while reducing portfolio risk as measured by standard deviation. This method specifically increases the efficient frontier for investors. The challenge to an investing firm is an appetite by its customers for an ever increasing efficient frontier. One area to explore to obtain this increase is through further diversifying through international diversification.

The original formula for Red Bull was developed in 1964; however, the Red Bull company was not founded until 1984 after a merger between Dietrich Mateschitz, marketing guru, and Chaleo Yoovidhya, the owner of the Red Bull formula. Categorized as an energy drink, Red Bull was initially designed to “treat jet lag and boost energy for truck drivers” (Hollensen, 2012). In today's era, Red Bull is commonly used as an energy drink; like coffee, and as a mixer in alcoholic drinks, like Red Bull Wings and the Jägerbomb. This aligns with the company's focus on the younger generations of partygoers and post-secondary students.