Analyzing Target Canada's Project Failure: A Case Study

This case study examines the failure of Target Canada, a subsidiary of the Target Corporation, which ceased operations in 2015 after a brief period of expansion into the Canadian market. The analysis highlights several critical issues that contributed to the project's downfall, including insufficient market research, poor budget allocation, and inadequate supply chain management. The study explores the project's scope, quality of services, and financial constraints, emphasizing customer dissatisfaction with high prices and product availability. It further investigates the project's lifecycle, from startup to closure, and identifies the need for customer feedback and better planning. The case emphasizes the importance of thorough market analysis, effective budget control, and a customer-centric approach in retail expansion projects, drawing on the insights from project priority matrix and project lifecycle stages.

TARGET
CANADA- A
CASE OF
PROJECT
FAILURE

• Target Corporation was
known to be one of the largest
retailer of the United States.
• Target Canada is a subsidiary
of the target group which was
expanded in Canada.
• Established in the year 2013
(Walsh & Cunningham, 2016).
• By January 2015, there were
133 operating store of Target
in Canada.
INTRODUCTION

• The main market competitors of Target Canada were
the American Walmart retailer.
• Target Canada remained in operation from 2013-2015.
• In the year the 2015, Target Canada announced to
cease its operation.
• The company went bankrupt in the process of
extending their business.
• More than $2 billion dollars were at stake (Hamilton &
Micklethwait, 2016).
Continued……

PROBLEMS ASSOCIATED WITH TARGET
CANADA
Scope –
• The project was implemented in a very short span
of time. As the Target group had already
implemented the business successfully in the US
they applied the same strategy in Canada.
• Sufficient time was not allotted to research about
the marketing strategy of Canada.
• Within such a short duration the project could not
meet the market requirements.

CONTINUED………
Quality-
• Customers were unsatisfied with
the extensive prices of their
products.
• Target’s market competitors such as
Costco and Walmart were known
for its low prices of the product.
• Target aimed for business
expansion rather than providing
quality services to their Canadian
consumers.
• Operating 124 stores in such a short
span of time degraded their quality
of service.

CONTINUED………..
Budget
• Target was falling out of budget in
the process of expanding their
business.
• They could not invest to improve
their supply chain.
• The stores where running out of
stock.
• To compensate the losses the Target
increased their product prices thus
resulting in unsatisfactory customers.

PROJECT PRIORITY MATRIX
TIME SCOPE COST REMARKS
CONSTRAIN YES THE COMPANY SHOULD HAVE PROPERLY
RESEARCHED REGARDING THE MARKET
STANDARD AND STRATEGY OF CANADA. THEY
SHOULD HAVE ALSO DONE PROPER RISK
ASSESSMENT PRIOR TO THE ESTABLISHMENT
OF THE COMPANY IN CANADA.
ENHANCE YES THE SCOPE OF THE TARGET GROUP COULD
HAVE BEEN ENHANCED IF THE PRICING
STRATEGY WAS EXAMINED BEFOREHAND. THE
PRICES OF THE PRODUCT SHOULD HAVE BEEN
PROFITABLE AND COMPETITIVE AT THE SAME
TIME. APART FROM THIS, CONNECTING WITH
THE POTENTIAL CUSTOMERS OF THE PLACE
COULD HAVE INCREASED THE FUTURE SCOPE
OF TARGET CANADA.
ACCEPT YES ESTABLISHMENT OF A PROPERLY ESTIMATED
BUDGET BEFORE THE IMPLEMENTATION OF
THE THEIR BUSINESS IN CANADA COULD HAVE
BEEN HELPFUL IN BATTLING THE
BANKRUPTCY THAT THE TARGET GROUP
ENCOUNTERED IN THE LATER DATE.

CONTINUED……..
• Extensive research was a critical aspect for launching
their product in the Canadian market.
• The target group failed in this aspect of extensive
research.
• The Target group also failed in their budget
allocation.
• Could not invest for improving the supply chain.

• The effectiveness of budget allocation of the Target
group is low.
• Budget allocation could have been carried out after
the appropriate background study of the Canadian
market.
• Poor budget allocation led to poor service quality of
the target group.
• Prices of the commodities were increased.
CONTINUED….

CONTINUED……..
• The effectiveness of maintaining their product
quality was medium.
• The effectiveness of maintaining their product
stock was also very low.
• Low product stock have hampered their
business by reducing the number of customers.

PROJECT LIFE CYCLE
Project start up
• The objective of the Target group should have
been to gain customer satisfaction rather than
project expansion.
• The target Canada’s main objective was to
expand their business within a short span of time.
• In the start-up stage of their project, the target
should have conducted an extensive research
regarding the customer choices in Canada

PROJECT LIFE CYCLE