Horizontal integration is defined as the process of an organization acquiring other companies competing in the same or similar industries. This is done in order to eliminate competition or enter additional or new markets the existing firm has yet to enter on its own. Undertaking the aforementioned action is seen to be beneficial in its ability to provide additional benefits in the form of an established market position, technological expertise, economies of scale, capital assets, and an essential customer base. Said acquisitions are common in high tech, pharmaceutical, and retail sectors. Often these acquisitions come at a premium and demonstrate mixed results based on the evaluation and subsequent actions undertaken by the existing firm.…show more content… Target Canada proved to be unprofitable and financial unsustainable, ultimately resulting in the need to close all of the 133 retail locations spread throughout the various regions of Canada. This strategic decision/grand scale project is a paragon of a true failed venture, a point further accentuated by Target’s CEO, Brian Cornell, when he opined “we were unable to find a realistic scenario that would get Target Canada to profitability until at least 2021”. From the inception of this foreign expansion project, the strategic management team of Target believed the misconception that the same pricing level experienced in the domestic markets, namely the US, would be carried over to the Canadian retail locations, a primary competitive advantage. This pricing advantage experienced in the United States was the primary lure of Canadian consumer to such locations. Company executives failed to realize the presence of a commoditized product within its industry in Canada and was not adequately prepared to employ a pure cost leader strategy. Although the Target brand had built a strong reputation and intrinsic value within the United States it provided no meaning and symbolism for the Canadian consumers. Consumers were simply comparing Target Canada to the other local retail chains based on the pricing, which Target
