Tuesday, October 15, 2019

Identification of Problems and Justification for Target Corporation Case Study

Identification of Problems and Justification for Target Corporation - Case Study Example The management system was not in touch with the realities of the Canadian consumers needs. The analogous approach by the management without incorporating the difference in dynamics in culture, demographic and perception of Canadians in comparison to the US consumers by the management played a key role. However, current the leadership of the company has exchanged hands from Tony Fisher to Mark Schindele. This clearly demonstrates that indeed failure of success of the company emanated from the management execution (which might have been poor). Mark Schindele has the mandate and the responsibility to ensure that Target Canada is revived (Pirouz and Hong Para 1). Sourcing merchandise was a critical problem at the company. The storing inventory and distribution of products to the stores doubled the problem. Moreover, Target Canada relied on retailers to distribute its merchandise hence stocking became a real problem. Keeping shelves stocked with minimum stock proved challenging for the company. Majority of the stores were empty. It is completely impossible to sell products that are not available. In less than a year Target opened more than a hundred store with few national distribution centers that were to services these stores. It was impossible to distribute the right product to different stores in a manner that would commensurate with the products that the respective stores actually needed. For instant, in Windsor store, the products offered did not match the taste and preference of the locals. Customers would walk into the stores and would hardly find the desired products. The management was unconscious of the customers’ need analy sis at its various stores.   Many shelves were empty because the stores had too many that they did not need and had little that they needed. It is difficult, in fact next to impossible to change customers shopping habits with empty shelves. Impulse buying may be limited in such scenarios. Basic commodities such as food and other consumables (which are known to run repeat business) were most cases unavailable. In addition, replenishing the products at the stores was poor due to the poor execution of the distribution strategies.   The most affected products were the perishable products. Food and grocery being sourced by a potential competitor called Sobey. Perhaps Sobey stalled in its partnership with Target Company in order to have a competitive age. Another instant was the poor choice of in-store coffee shop. Target Canada was widely and wildly anticipated to prefer Tim Holtorns Company to Starbucks as an in-store coffee shop.   Experts view that had the company partnered with Tim Holtorns then it would have been an ideally strategy to enter into the Canadian market using Tim Holtorns.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.