Outsourcing Grocery Business of Target Corporation

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Target Corporation: Grocery Outsourcing

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Table of Contents
Introduction and Recommendation............................................................................................3
Problem Formulation.................................................................................................................3
Information and Evidence Evaluation........................................................................................4
Analysis......................................................................................................................................5
Alternative Solution...................................................................................................................5
Recommendations......................................................................................................................6
References..................................................................................................................................7

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Introduction and Recommendation
Target Corporation is one of the chain store retail giants of the United States. It has an
annual sale of $73 billion and has ranked 38th in the list of Fortune’s largest publicly traded
companies of the United States (Fortune 500, 2015). Target has recently acquired Shipt with
plans on improving the competitiveness of the firm in same-day shipments and to bring
improvements in the company’s online capabilities. The grocery business of the company has
been facing several challenges for which solutions are needed. The following analysis
focuses on the main issues of Target Corporation and also takes into consideration the
potential solutions which have help the grocery business of the firm.
There were several issues and problems that were being faced by Target. Target was
lacking competitive advantage and scale. Its grocery section has been lagging behind and not
much revenue is generated for this department. The work of the retailer’s supply chain is not
up to the mark as the task of bringing fresher products to the store is not being done properly
in some regions of the country. There is a great need to improve the supply chain and the
grocery business. Outsourcing the grocery department and partnering with another firm
would help the company in differentiating assortment in a better way by offering healthy,
organic and unique items and products, and bringing their supply chain to order.
Problem Formulation
Target Corporation has been suffering from several problems, amongst which
primarily come the issues of lagging behind of its grocery business and not being able to
generate significant revenues. The other issues faced by the firm are lacking scale and
competitive advantage. Target is in a great need of bringing improvements in its grocery
section by using solutions such as outsourcing the department and partnering with another
company. There are also some other issues that could arise despite outsourcing its grocery