Premium Essay

Target Canada Case Study Summary

Submitted By
Words 547
Pages 3
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

Similar Documents

Premium Essay

Lever Group Case Study

...3/15/2015 Lever Ltd. Group Case Study GROUP 5 Table of Contents Executive Summary 3 Situation Analysis 4 Environment 4 Economic Conditions & Trends 4 Cultural and Social Values & Trends 4 Political & Legal Issues 4 Summary of Environmental Opportunities & Threats 5 Implications for Strategy Development 5 Industry 5 Classification & Definition of Industry 5 Analysis of Existing Competitors 5 Analysis of Potential New Entrants 6 Analysis of Substitute Products 6 Analysis of Suppliers & Buyers 6 Summary of Industry Opportunities & Threats 7 Implications for Strategy Development 7 Organization 7 Objectives & Constraints 7 Financial Condition 8 Organizational Structure 8 Organizational Culture 9 Summary of the Firm’s Strengths & Weaknesses 9 Implications for Strategy Development 10 Marketing Strategy 10 Objectives & Constraints 10 Analysis of Sales, Profits & Market share 11 Analysis of Target Markets 11 Analysis of Marketing Mix Variables 12 Summary of the Marketing Strategy’s Strengths and Weaknesses 12 Implications for Strategy Development 12 Problems Found in Situation Analysis 13 Statement of Primary Problem 13 Evidence of Problem 13 Effects of Problem 13 Statement of Secondary Problem 13 Evidence of Problem 13 Effects of Problem 14 Strategic Alternatives for Solving Problems 14 Description of First Strategic Alternative 14 Benefits of First...

Words: 5578 - Pages: 23

Premium Essay

Windmill

...contents Executive summary 2 Problem 2 Purpose 2 Scope 2 Introduction 3 Advantages of wind power 4 Environmental effects 5 Emissions 5 Ecological footprint 5 Conclusion 7 Recommendation 7 Executive summary The report provides an analysis of the nonmarket issues of the wind power market and provides information relating to wind power projects in Canada. The report aims to help communities balance local concerns with wider environmental needs, thereby allowing the benefits of renewable energy to be realized through careful design and consultation. Additionally, it also provides a profile of a major wind power company in Canada. Problem Electricity generation produces more pollution than virtually any other single industry in Canada. Pollution, air quality, acid rain, nuclear waste and global warming are the unwanted side effects of traditional power production that endanger the environment. Every day, many fossil fuel consuming contraptions spew out gases that pollute the environment. However, when the fuel supplies for these devices run out, they will grind to a halt. To prevent this, Canada needs to find an alternative to unstable and polluting energy sources. Purpose The purpose of this report is to examine wind energy as alternative energy source and effectiveness at reducing emissions by replacing power generated from fossil fuels. Scope The report will examine wind power as an alternative energy source and nonmarket issues. Wind power usage in Canada has been growing...

Words: 1781 - Pages: 8

Premium Essay

Marketing

...Executive Summary: This paper discusses the problem being faced by the product manager Jane Wells of Post children’s cereal and her dilemma in implementing the business plan for the year 1991. The main Concern for the company was the decline in sales volume by around 12 percent due to competition from Kellogg’s and its significant increase in advertising and trade expenses. Not only this the product manager was facing problems with the allocation of marketing budget she had, but what mix to go with for various marketing programs to use (in- pack premiums, trade promotions or advertising). To make matters complicated the manager was unsure what marketing mix to go with, since all the three mix were important for the brand. The paper will discuss the above issues faced by the company and explain various alternate solutions the manager can take to face competition from Kellogg’s and other brands like Miller general and Quaker oats. Table of contents Page History of the company …………………………………………………… 04 Children’s cereal market in Canada ………………………………...….. 04 Issues faced by the company ……………………………………………. 05 Implementation and alternatives ………………………………………... 06 Recommendations ………………………………………………….……….07 Conclusion ……………………………………………………………….…...08 References ………………………………………………………………...… 09 History of the company: Kraft General Foods was purchased by Philip Morris in the year 1988. It was merged with general foods which Philip Morris...

Words: 1407 - Pages: 6

Free Essay

Marketing

...USA TODAY – INNOVATION IN AN EVOLVING INDUSTRY: INDIVIDUAL CASE STUDY Victoria Hill USA TODAY – INNOVATION IN AN EVOLVING INDUSTRY: INDIVIDUAL CASE STUDY Victoria Hill Table of Contents 1. Executive Summary ............................................................................................................................. 3 2. Identification of the Problem ............................................................................................................... 3 3. SWOT Analysis..................................................................................................................................... 4 3. 1. Strengths ..................................................................................................................................... 4 Strength 1. Highly innovative newspaper company that has been a leader in news development .... 4 Strength 2 – Gannett is currently the largest newspaper distributor in terms of circulation ............. 4 Strength 3 – Strong portfolio with multiple Brand Extensions and Partnerships ............................... 4 Strength 4 – Excellent presence and distribution in the digital environment .................................... 4 3.2. Weaknesses .................................................................................................................................. 6 Weakness 1 – Relatively small amount of digital subscribers ....................................................

Words: 4344 - Pages: 18

Premium Essay

International Demension of Marketing

...markets…………………………………………………………………….3 2.1 Literature review of a well managed organization with culture of learning and innovation in international markets………………………………..……………………………3 2.2 Examining Wal-Mart’s characteristics to the extent of learning culture and innovation …………………………………………………………………………………………………….4 3. Critical review internationalization theories and the case of Wal-Mart from 1994 onwards……………………………………………………………………………………………………….7 3.1 Theories of internationalization…………………..……………………….……………………...7 3.2 Wal-Mart’s internationalization strategies from 1994 onwards……………..……9 4. Wal-Mart entry Brazilian and Japanese market……………………………………………….10 4.1 Considerable issues of the company………………………………………………………… 11 4.2 Opportunity in those markets……………………………………………………………………13 5. Wal-Mart’s entry modes in international markets - Examining with Brazilian and Japanese markets…………………………………….…………………………………………… ….13 5.1 Mode of entry to Brazil ………………….…..……………………………………………………..13 5.2 Mode of entry to Japan……………………………………………………………………………….14 6. Summary……………………………………………………………………………………………………………15 7. References………………………………………………………………………………………………………….15 8. Appendices…………………………………………………………………………………………………………16 1. 12C framework with Brazilian and Japanese markets………………………………………16 2. Factor effecting the foreign market entry mode decision…………………………………19 1. Introduction Traditionally, an appropriate...

Words: 5462 - Pages: 22

Premium Essay

Coor's Light Promotion Plan

...Promotional Plan Executive Summary Naturally brewed with no added preservatives in Golden, Colorado, the heart of the Rockies, Coors Light is the eighth leading beer brand in the world. As Molson Coors’ largest brand, the new parent company after the 2005 merger, Coors Light has established itself as the biggest selling brand in both the US and Canada. The merger, however, left the company heavily indebted and with limited capital suffered a loss of partnering and sponsorship for major sporting events. Coors Light has worked extremely hard to maintain the positioning as ‘The Worlds Most Refreshing Beer” withstanding the susceptibility the brand faces with only a single brewing site and third party distributors. This promotion plan includes the following objectives for the upcoming year: * To attract non-users and create brand awareness among 90% of females aged 21-30 seeking a refreshing tasting light beer, * To retain the 18-24 year old male target currently held by Coors Light. * To engage the mobile community through the use of Mobile Insider, connecting the brand to consumers. The objectives should be met through various promotional activities tied closely to the company’s long-standing brand image, and mobile promotions to increase accuracy in reaching target markets. Over the next 12 months it is recommended that Coors Light continue to use the Maxim Golf Experience to maintain the current target market. The brand will increase awareness...

Words: 8921 - Pages: 36

Free Essay

Blackberry

...Question 1 With reference to the case study, it is noted that various countries were involved in the Blackberry controversy. Frustration arose for countries like India, Saudi Arabia, United Arab Emirates (UAE) and Indonesia as the government considered the phone and system to be a national security threat due to strong encryption of the Blackberry system that guaranteed customers privacy. Local governments had difficulty to intercept or monitor conversations (regarding illegal or terrorists activities), as the information did not pass through domestic servers. The case study points out that the UAE had intentions to ban Blackberry in 2010 following arrests of several youths that organized a peaceful protest using Blackberry Messenger. It was believed that the attackers of Mahmoud al-Mabhouh, senior leader of Hamas (Palestinian militant group), in Dubai, is allegedly a team of Israeli intelligence agency in 2010 communicated securely on their Blackberry phones. The regulators in UAE argued that some features operated by Blackberry fell outside the country’s laws, therefore causing judicial, social and national security concerns. This overshadowed the initial considerations of the freedom protection of the population. Saudi Arabia intentions to ban the Blackberry arose as government claimed that the Blackberry services did not meet the regulatory requirements and posed a national security threat. The country, which is RIM’s biggest Middle East market, also believed that...

Words: 1950 - Pages: 8

Premium Essay

Health

...A framework to measure the impact of investments in health research OECD Blue Sky II Forum, September 25, 2006 Alan Bernstein, Vern Hicks, Peggy Borbey, Terry Campbell Abstract This paper describes the approach taken by the Canadian Institutes of Health Research (CIHR) to develop a framework and indicators to measure the impact of health research. The development process included national and international consultations. Key methodology challenges and measurement requirements were identified. The framework that has resulted from this process includes definitions of key concepts, methodology guidelines, identification of the different stakeholders for impact information and the individual concerns of each stakeholder group. Indicators are classified within five categories that encompass a broad range of impacts. Sources of information and issues in attributing research impacts are discussed. An analysis of issues suggests that impact measurement and performance measurement are complementary activities, with the former focused on broad impacts of the health research sector and the latter on the degree of success achieved by funding agencies in contributing to the process of knowledge development and uptake. Introduction Accountability and value received for the use of public funds have become high priorities for governments around the world. Quantifying the value of publicly funded health research is a challenge for many countries. This paper describes the approach taken by the...

Words: 5822 - Pages: 24

Free Essay

Jumba Juice

...Table of Contents Executive Summary………………………………………………………2 Problem Statement…………….…………………………………………2 Situation Analysis…………………………………………………………2 External (Refer to appendices A)…………………………………2 Internal (Refer to appendices B)………………………………….4 Segmentation Analysis (Refer to appendices C, D, & F)……………..6 Strategic Alternatives (Refer to Appendices F, G, & H)……………….9 Alternative 1…………………………………………………………9 Alternative 2………………………………………………………..10 Alternative 3………………………………………………………..11 Recommendation………………………………………………………...12 Implementation (Refer to appendices I)……………………………….13 Conclusion………………………………………………………………..14 References………………………………………………………………..15 Appendices……………………………………………………………….17 Group Contract…………………………………………………………..25 Executive Summary Jumba Juice, a chain of smoothie restaurants from the United States, is facing a marketing challenge that will be solved throughout the following case study. The company needs to define their target market, as well as create brand awareness in Canada through a new marketing plan. There are four alternatives that the clients should consider; a) marketing to Generation Y, b) marketing to the Millennial generation, c) marketing to business people, and d) marketing to health conscious individuals. The recommended alternative is to market to suburban areas across Canada because they contains three of segments of Jamab Juice’s market; Generation Y, the Millennial’s and health conscious individuals. This region has...

Words: 3721 - Pages: 15

Premium Essay

Vincor Project -Twist Case

...TABLE OF CONTENTS Case Study – Vincor: Project Twist Executive Summary………………………………………………………………………………………..………….…….2 Problem Statement………………………………………………………………………………………………………….2 Situation Analysis………………………..…………………………………………………………………………………..2 Background…………………………………………………………………………………………………………2 Objectives………………..………………………………………………………………………………………..2 S.W.O.T. Analysis………..…...…………………………………………………………..……………………………….3-4 Market Analysis………….....……………………....…..…..…………………………..……………………………….4 Competition Analysis….......…………………………....…..…………………………………………….4 Positioning Map….......…….………………………....…..…..……..……..................................5 PESTE………...….......…….………………………....…..…..…………..……..................................5-6 Consumer Analysis…...…….………………………....…..…..……………………………………………7 Case Keys.…………………………………...…………………………………….………………………………………….8 Alternatives……………………...…………………………………...…………………………………………………….8-9 Recommendation………………..…………………………………...…………………………………………………9-10 Action Plan…………………………………………………………...………………...………………………………….10 Short term………….………………………………………………………...………………………………..10 Long term……………………………………………………………………..………………………………..10 Contingency Plan……………..……………………………………...………………….................................10 Market Segmentation Chart- Appendix A……………………………………………………………………11-12 Pricing Options Chart- Appendix B……………………………………………………………………………..13   Executive Summary: Vincor, world-renown for its production and distribution of wine and wine-related products,...

Words: 3276 - Pages: 14

Premium Essay

What Is Ocean Acidification?

...This increases the amount of CO2 uptake in oceans when these organisms photosynthesise (Williamson et al., 2012). However, its feasibility has been questioned and studies have shown that there is minimal expected increase in CO2 uptake (Oschlies et al., 2010). The problem is that this technique reduces atmospheric CO2 by encouraging its absorption in oceans instead. While atmospheric CO2 levels fall, level of dissolved CO2 in deep waters increases, worsening the problem of ocean acidity. A bigger concern is that large amounts of other greenhouse gases such as nitrous oxide and methane may be released due to decomposition of large biomass under anoxic conditions (Williamson et al., 2012). These pollutants have global warming potential 320 times and 20 times greater than CO2 respectively. Hence, instead of reducing greenhouse gases to slow down global warming, this technique might aggravate the...

Words: 2028 - Pages: 9

Premium Essay

Topic: Performance Management

...© 2013 The Society of Management Accountants of Canada. All rights reserved. ®/™ Registered Trade-Marks/Trade-Marks are owned by The Society of Management Accountants of Canada. No part of this document may be reproduced in any form without the permission of the copyright holder. MODULE 1, ASSIGNMENT 1 August 30, 2013 Topic: Performance Management Overview Welcome to Module 1. If you have not already done so, read the Program Manual located in the Reference Material section of the CMA Canada Professional Programs website. It provides you with important introductory information about the program. In Module 1 of the program, candidates are exposed to many functional competencies from the CMA Competency Map that involve decision making regarding performance management, performance measurement, risk management and governance, and financial reporting. For assistance when doing their assignments in these areas, candidates are expected to draw on many of their intermediate and advanced management and financial accounting concepts they learned in their university courses and/or in the Accelerated Program. For instance, in this assignment, one of the concepts involves Cost-Volume-Profit (CVP) analysis. In these types of analysis, candidates may be asked to look at how profits and costs change with a change in volume, or a change in such factors as variable costs, fixed costs, selling prices, and mix of products sold. By studying the relationships of costs, sales and...

Words: 6968 - Pages: 28

Free Essay

Mito

...ECON 4355/5355 - Case Study Requirements & Questions – Sandy Pond As indicated in the case study general guidelines, provide a brief introduction to your report. Your introduction should highlight the main points and lead the reader to the specific questions below that you are going to address. This is an analysis type of report, so you need to use a paragraph format. You may use any style format for your references (MLA, APA, Turabian, or Chicago) but it is important to be consistent. Your papers will be read by other faculty in the College as part of our AACSB assessment program. List each question and provide your narrative below it. Keep in mind that some of the questions may require outside material and references. Make sure you provide correct citations to that material. Use 12 point font, normal 1.15 inch margins, and 1.5 line spacing for your paper. Length of paper will vary with the detail of your answers but it should be at least 8-10 pages. Instead of being designed as a management decision-making exercise, this case places you in the position of environmentalists as you decide what course of action to initiate evaluating both ethical and economic issues. Harvard Business Review Summary: In July 2009, Vale NL began building a $2.17 billion nickel refinery in Long Harbour, Newfoundland and Labrador. The refinery would bring economic prosperity by creating 1,600 to 2,000 jobs during construction and 400 to 500 permanent jobs in an area of high unemployment. The project's...

Words: 774 - Pages: 4

Premium Essay

Deluxe Foods Ltd.

...EXECUTIVE SUMMARY Deluxe Foods Ltd. (subsidiary of a large US based consumer packaged-food company with annual global sales of more than $2.8 Million) is currently in a pivotal growth and expansion stage of their business cycle. The company has to decide on whether to create a separate marketing plan for one of their corresponding territories (Quebec) or focus on a global strategy for the entire firm. As Quebec and Ontario account for 69% of the total sales (in the amount of $450 Million) for this Canadian subsidiary, it is imperative to develop and customize a marketing campaign for this market. Currently, the Ontario division is functioning adequately (having a central distribution centre in Toronto helps), yet there is opportunity to grow market share in Quebec. This is due to the following factors: * 80% of the market is French speaking * Quebec’s per capita consumption is above the national average * Previous research projects suggest to separate and differentiate the brand from competition * Revise and customize the advertisement plan in the French language * Collaborate with the independent shops Creating an effective marketing plan includes: 1. Set Objectives- Grow the Quebec market share by 10% annually 2. Select Target Market- Sell products in independent mom and pop shops by conducting market research and analysis (SWOT), pricing strategy, promotional campaign 3. Develop Marketing Mix- Price...

Words: 3361 - Pages: 14

Premium Essay

Strategic Management

...Proudly presents… Session 4C: Strategic Risk Management: Improving Your Organization’s Chances for Success Andrew Bent Director Integrated Risk Management Edmonton Police Service Rod Knecht Chief of Police Edmonton Police Service Hans Læssøe Senior Director Strategic Risk Management The Lego Group Session Outline • Overview of Strategic Risk Management • The Case for Strategic Risk Management • Case Studies: – Aligning Strategy and Risk in the Edmonton Police Service • View from the Risk Manager • View from the Chief of Police – Adding Value through SRM in the Lego Group • Questions Overview of Strategic Risk Management Aligning Strategy and Risk Management © Risk and Insurance Management Society, Inc. (RIMS) Source: RIMS Strategic Risk Management Implementation Guide 2012. All rights reserved. Aligning Strategy and Risk Management How do we do it? (e.g. Strategic Business Plan, Balanced Scorecards, Annual Plan) Risk Source (e.g. Financial Risk) Specific Financial Risk Specific Financial Risk Are there existing risk controls? Are the controls consistent with the risk appetite? Is risk tolerable? Is risk consistent with risk appetite? If NO Implement New / Amend Existing Risk Controls Strategic Objective Risk Source (e.g. Regulatory Risk) Specific Regulatory Risk Specific Regulatory Risk Monitor Existing Risk Controls Risk Source (e.g. Operational Risk) Specific Operational Risk Specific Operational Risk If YES ...

Words: 635 - Pages: 3