Report on International management

After Walmart stores Inc. And Costco wholesale, Target cooperation is listed as third largest big-box discount store operator in the United States. Unlike the competitors, Costco and Walmart, there is no significant operation of Target Inc. Outside the United States. Because of the bad execution of poor plans, Target has suffered from heavy losses when considering the expansion of services into Canada. Even the first attempt of operating outside of Canada was not successful and Target lost $5.4 billion in Canada. Besides the loss, the reputation of the retailer was also badly damaged, and it was forced by the consumers and others to shut down nearly 124 stores around the world (Louis, 2019). The Rapid expansion of the Target services was criticized from the beginning therefore Target shifted its attention away from the goal of international expansion. The main concern of the present report is to identify how a Target can profitably be returned to Canada and how it is possible to expand the services in other countries. Taking the brand to Overseas is an appealing strategy but it requires a number of steps to jump at the chance.  However, the journey of international expansion can be treacherous. Besides considering the establishment of fresh customer-based services, finding a trustworthy partner in business, getting familiar with the customs of local areas, new rules and regulations for the business, the most difficult process is to navigate to become a Global company. Every business face challenges it is important to decide to leap overseas (Azahari, Ason, Damit, & Hamid, 2019).  

Three main strengths of International management

There are no significant and major business decisions without considering the hurdles during the process of global expansion. The challenges consist of a unique set of obstacles that must be prepared before expanding the business internationally.  Strengthening foreign customer trust over the brand is not easy. The Target corporation is required to work harder so it can convince the international market about their product (Anyanwu & Nweake, 2014).  While expanding the business on an international level it is important to consider why would the customers prefer to buy from Target instead of local champions? Is it possible for Target to penetrate the market? Under different circumstances is it profitable for the company to penetrate in Canada? Instead of only thinking about the expansion of company and customer response first consider the strength parameters of Target. Some of the important strength parameters of Target are listed below,

1.      In united states, Target is well established as well as a recognized brand name that gets respect from the customers on the basis of services provided to them. Unlike Walmart Target is liked by the number of customers in united states.  Considering the international expansion of Target in Canada, it seems similar to provoke none of resentment and hostility. Unlike Walmart, Target must be assumed as a fun place to shop (Ameen, Ahmed, & Hafez, 2018).

2.       Target is used as a strong expert in the marketing process with a highly profitable segment of the retail market such as household furniture and fashion. The company has developed a good customer relationship at a higher level of brand loyalty. Target has the ability to develop the shopping experience of customers according to their needs with enjoyable touch in services.  In the united states, Target has developed the ability to present itself more appealing for the customers, fashionable and hip.

3.      Target has the ability to ensure the services for the middle class brand. This process attractive number of customers and shoppers from different shopping centres. The shoppers find traditional discount stores therefore they prefer convenience to purchase order from Target (Louis, 2019).

Three main reasons of International management

The struggle of targeting in Canada can be attributed as a miscalculation of What makes Shoppers of Canada tick. In the beginning, the company assume about reputation but during the expansion procedure, the target did not understand why the customers of Canada were loving the products and stores of a target in the United States (Dahlhoff, 2015). There are three main reasons for target failure in Canada and the reasons are mentioned below,

1.      Sticker shock of International management

  The lack of customer intelligence in Canada is more evident from the discrepancy of prices in Canadian and American stores. According to Canadian customers, the target did not follow its tagline that expects more and pay less.  Statistics show 53% of target stores in Canada work less as compared to the United States and offer low prices of the services. Back during the business in Canada, the target was wanted to explain all the potential and major differences in promotion and pricing of Canadian services. Instead of avoiding disappointment target in Canada missed the mark. Instead of focusing on the exciting merchandising process target found itself to complete the pricing of Walmart. Walmart became aggressive to protect all the hard-found Canadian market share. In this scenario, the target has admitted that it was not offering sharp pricing and resulted in customers thinking that the products are expensive (Brooks, 2019).

2.      Ignoring the customer experience of International management

Statistics of 2015 show that 70% of regular target Shoppers in Canada previously had experience from the stores of the United States.  These customers had a full perception of the services and type of target. Besides that, they also had an idea about the products. Unfortunately, 40% of them were engaged with the services and they demonstrated that shopping experience of Canadian target was not up to the mark. In Canada target failed in demonstrating the importance to the perception of the customer. The expansion was not successful because the customers were not satisfied with the services and products (Brooks, 2019; Azahari, Ason, Damit, & Hamid, 2019).

3.      Empty shelves and unhappy customers

 The empty shelves of the target in Canada did not help its ventures. The company failed in creating an adequate distribution centre therefore the online feedback system was filled with complaints of customers about low inventory. According to the studies conducted in 2015, 41% of Canadian was not satisfied with the services provided by the target in Canada. Some of the mentioned that selection of home Furnishing And home decorate selection was not good in Canadian target stores as compared to stores in the United States. Target failed to value customer intelligence in Canada. The big problem was stock. Target opened 124 stores in a very short period of time without proper planning and disappointed Expectations of Shoppers. The popularity of Colgate Hinges on being treasure trendy and affordable fashion with high quality merchandising skills. According to the customer the services provided by target word not compelling as compared to Walmart (Ameen, Ahmed, & Hafez, 2018).

Expansion of Target in India  

The member and service providers of target Corporation in India is a fully integrated Global and collaborative talented team members that work to improve the business across the border. Target has developed business initiatives in India with the extension of headquarter of the target. An integral part of a strategy developed by the target is to develop a global workforce that meets the requirement of services and consists of talented team members. The company has planned to expand the business in India by the construction of additional office spaces in the India (Dahlhoff, 2015).  Comparing the Indian and Canadian customers it is obvious that Canadian are generally more familiar with the services of the target. Most of them visit the United States in the vacations and purchase products from the United States.  In the development and expansion of business, the well-established and mass merchant brands have more chances to expand their performance (Azahari, Ason, Damit, & Hamid, 2019). It is suggested that the performance of target in Canada during the holiday’s session is required to be Deeper with the reputation of retailers. When comparing with the Indian market, target reported that comparable sales of services and products Rose better than expected 3% in the holiday session (Wahba, 2015).  It could be considered as an encouraging sign for the retailer by the customers to feel that the services are according to the requirement in needs. In India, most of the customers lost its cheap-chic halo in recent years. This issue is thought-provoking and less exciting for the merchant in the market. In India target is formatting small stories particularly in the central part of cities (Azahari, Ason, Damit, & Hamid, 2019). The services are relatively less expensive, and it cut all the losses that matters in the development of the company. In Canada, Cornell said that we delivered over best services and still we did not meet our guest’s expectation even our expectations. Unfortunately, the negative sentiments of the customers became much that overcome the business therefore we retreated our services back to the United States (Louis, 2019).

Conclusion of International management

The prime consideration of the present case was to identify the development and growth of target in different areas. The case study involves globalization of target Corporation in Canadian and Indian market. The report identified three main strength of target that encourage to explain the business internationally. Besides that, the report identifies the three main reasons and causes that resulted in the failure of target expand business in Canada. When considering international expansion of business target is developing business in Canada and India. Target got more customer satisfaction in India as compared to Canada therefore profit, customer satisfaction, and brand recognition in India is high as compared to Canada.

References of International management

Ameen, A. M., Ahmed, M. F., & Hafez, M. A. (2018). The Impact of Management Accounting and How It Can Be Implemented. Dutch Journal of Finance and Management into the Organizational Culture, 02(01), 2542-4750.

Anyanwu, S. A., & Nweake, L. I. (2014). Ethical challenges in international business operations. Journal of Business and Retail Management Research, 08(02), 01-10.

Azahari, L., Ason, M. L., Damit, N. J., & Hamid, N. F. (2019). A Comparative Case Analysis on Cross Cultural Management: A Study on Africa and Brunei Cultures. Journal of islamic, social, econmomics and development, 04(23), 114-126.

Brooks, C. (2019). Going Global: How to Expand Your Business Internationally. Retrieved from www.businessnewsdaily.com: https://www.businessnewsdaily.com/8211-expand-business-internationally.html

Dahlhoff, D. (2015). Why Target’s Canadian Expansion Failed. Retrieved from hbr.org: https://hbr.org/2015/01/why-targets-canadian-expansion-failed

Louis, D. S. (2019, 04 12). Why Target Failed in Canada, and What Other Companies Can Learn from It. Retrieved from www.visioncritical.com: https://www.visioncritical.com/blog/target-canada

Wahba, P. (2015). Why Target failed in Canada. Retrieved from fortune.com: https://fortune.com/2015/01/15/target-canada-fail/