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Report on Failure of Target Canada

   

Added on  2020-04-21

4 Pages744 Words205 Views
Running head: FAILURE OF TARGET CANADAFAILURE OF TARGET CANADAName of the StudentName of the UniversityAuthor note

FAILURE OF TARGET CANADA1Rush Opening as A Reason for Failure of Target CanadaTarget Canada which had opened 133 stores closed down in less than two yearsdisheartening its huge range of customers who had responded to the close down as a totallyheart-broken one. The CEO of the company, Brian Cornell thought of closing down the companyas he has found the company would not gain any profits even at the close of 2021. The Canadianexpansion was declared in the month of January 2013 when Target bought a total of 220 leasesof Zellers. The one of the reasons for the failure of the Target is hugely the rush opening of thecompany (Chibba). The locations of the stores in some places were often not accessible for thelocal customers. Since the company has launched a huge number of stores in a small span oftime, the merchandise produced by the company failed to attract customers in the newlylaunched stores (Boone, Louis and Kurtz). A huge rush for opening several stores at a time,disrupted the supply chain of the company and as a result the company failed to bring in trendymerchandise in their stores. When Target opened its 124 stores in the Canadian market, it hasalso launched three national distributors. This had created a massive drawback for the companyas it could not meet the demands of the customers and hence failed to fulfill its business terms.Even before Christmas it failed to attract customers to their stores and the stores were mostlyempty. Thus, it can be concluded by saying that the expansion policy of Target is an influentialreason for the shut-down of the company.Measures to Prevent Such FailuresThe failures of Target Canada as discussed above could have been avoided if theorganization had executed its expansion policies in a much systematized manner. The first majorpreventive step that could have stopped the closure of the company is the identification of thecustomers. The company failed to identify the demographical advantage of the country and

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