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sed March 18, 2020. Failure in Canada esisinumoggO Isnoiuba g destination point for Canadians on shopping excursions to the Unite nart, Target wanted to expand its market in order to stay competiti nt team developed ideas, the idea of entering the Canadian market ow could it provide the same level of service as it did in the United S eveloped was the idea of getting Canadians accustomed to "one-stop ices into Canada was to be aggressive in rolling out stores in the first overed that Canada had a shortage of desirable retail space. To overc art's lead and do what Walmart did 20 years ago.' Target decided th ocations of an ailing discount chain. It approached Zellers, the last deal for leases of approximately 220 locations. The locations had ab- bout half the size of a Target store in the United States.' In addition, nd rebuilt many of the locations. The company invested about $4 billi ely opened 124 stores. ly announced it would shut down its Canadian stores. Target suffe n plan. The problems that led to this disaster were many. Target misr t Canadians' preferred buying habits. Unlike their American neighbc pp shopping" experience as Target had assumed. Consumers in Canac s Canadian stores were higher than in its US stores. Furthermore, Tar y e cc often had empty shelves. In other situations they had excess inven "Valmart didn't stand by and let Target simply expand into Canada. It becr oue c to pe or COu B w ne t development process, in which stages did Target fail? Explain what alysis and screening, what questions did Target fail to answer concer ain how it failed to answer these questions. ct analysis and screening, what questions did Target fail to answer cc re it went wrong. of the house of quality may have prevented this failure. Which "room ed in the product analysis and screening stage? Ins n

sed March 18, 2020. Failure in Canada esisinumoggO Isnoiuba g destination point for Canadians on shopping excursions to the Unite nart, Target wanted to expand its market in order to stay competiti nt team developed ideas, the idea of entering the Canadian market ow could it provide the same level of service as it did in the United S eveloped was the idea of getting Canadians accustomed to "one-stop ices into Canada was to be aggressive in rolling out stores in the first overed that Canada had a shortage of desirable retail space. To overc art's lead and do what Walmart did 20 years ago.' Target decided th ocations of an ailing discount chain. It approached Zellers, the last deal for leases of approximately 220 locations. The locations had ab- bout half the size of a Target store in the United States.' In addition, nd rebuilt many of the locations. The company invested about $4 billi ely opened 124 stores. ly announced it would shut down its Canadian stores. Target suffe n plan. The problems that led to this disaster were many. Target misr t Canadians' preferred buying habits. Unlike their American neighbc pp shopping" experience as Target had assumed. Consumers in Canac s Canadian stores were higher than in its US stores. Furthermore, Tar y e cc often had empty shelves. In other situations they had excess inven "Valmart didn't stand by and let Target simply expand into Canada. It becr oue c to pe or COu B w ne t development process, in which stages did Target fail? Explain what alysis and screening, what questions did Target fail to answer concer ain how it failed to answer these questions. ct analysis and screening, what questions did Target fail to answer cc re it went wrong. of the house of quality may have prevented this failure. Which "room ed in the product analysis and screening stage? Ins n

Understanding Business
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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New Belgium Brewing Company, "Water," http://www.newbelgium.com/Sustainability/Environmental-Metrics/ Water.aspx. Accessed March 18, 2020. 4. CASE 2 Target's Failure in Canada 2sisinuioggo isnoi36oub3 gnibnsox3 E32AD Target stores have been a destination point for Canadians on shopping excursions to the United States.' As the number two retailer behind Walmart, Target wanted to expand its market in order to stay competitive and maintain growth. As the senior management team developed ideas, the idea of entering the Canadian market took hold. The question CGL Target considered was, how could it provide the same level of service as it did in the United States? 1er 26w mao One concept Target developed was the idea of getting Canadians accustomed to "one-stop shopping." Another part of its plan to expand services into Canada was to be aggressive in rolling out stores in the first year, 2013. As Target ana- lyzed the situation, it discovered that Canada had a shortage of desirable retail space. To overcome this problem, Target decided to follow Walmart's lead and do what Walmart did 20 years ago." Target decided that part of the expansion process was to buy the locations of an ailing discount chain. It approached Zellers, the last major Canadian discount chain, and negotiated a deal for leases of approximately 220 locations. The locations had about 100,000 square feet on average, which was about half the size of a Target store in the United States.' In addition, as part of the expansion process, Target gutted and rebuilt many of the locations. The company invested about $4 billion in its Canadian expan- sion. In 2013 it aggressively opened 124 stores.? 99 In 2014 Target abruptly announced it would shut down its Canadian stores.3 Target suffered a $2 billion loss in its failed Canadian expansion plan. The problems that led to this disaster were many. Target misread the market and made a false assumption about Canadians' preferred buying habits. Unlike their American neighbors, Canadians are not as interested in the "one-stop shopping" experience as Target had assumed. Consumers in Canada were also disappointed that the prices in Target's Canadian stores were higher than in its US stores.? Furthermore, Target had significant supply chain issues. The stores often had empty shelves. In other situations they had excess inventories, resulting in major clearance sales. Finally, Walmart didn't stand by and let Target simply expand into Canada. It cut prices and expanded the number of its stores.?is1s CHGIL OCUGL UGqe ouue CgeGe to pe ga doana ecan26 oL uG USEnLG O QUESTIONS nsgnhowis O recpuojo M pe necq wu 26sK ong qur2 GUAILOUG 1. Using the product development process, in which stages did Target fail? Explain what it did wrong in DI those stages. In its product analysis and screening, what questions did Target fail to answer concerning its retail service operations? Explain how it failed to answer these questions. 2. coubrip Also in its product analysis and screening, what questions did Target fail to answer concerning the competi- 3. tion? Explain where it went wrong. nimsets 916 PIGTO iw bns 4. Explain how use of the house of quality may have prevented this failure. Which "rooms" or areas of the house would have helped in the product analysis and screening stage? quce
Transcribed Image Text:New Belgium Brewing Company, "Water," http://www.newbelgium.com/Sustainability/Environmental-Metrics/ Water.aspx. Accessed March 18, 2020. 4. CASE 2 Target's Failure in Canada 2sisinuioggo isnoi36oub3 gnibnsox3 E32AD Target stores have been a destination point for Canadians on shopping excursions to the United States.' As the number two retailer behind Walmart, Target wanted to expand its market in order to stay competitive and maintain growth. As the senior management team developed ideas, the idea of entering the Canadian market took hold. The question CGL Target considered was, how could it provide the same level of service as it did in the United States? 1er 26w mao One concept Target developed was the idea of getting Canadians accustomed to "one-stop shopping." Another part of its plan to expand services into Canada was to be aggressive in rolling out stores in the first year, 2013. As Target ana- lyzed the situation, it discovered that Canada had a shortage of desirable retail space. To overcome this problem, Target decided to follow Walmart's lead and do what Walmart did 20 years ago." Target decided that part of the expansion process was to buy the locations of an ailing discount chain. It approached Zellers, the last major Canadian discount chain, and negotiated a deal for leases of approximately 220 locations. The locations had about 100,000 square feet on average, which was about half the size of a Target store in the United States.' In addition, as part of the expansion process, Target gutted and rebuilt many of the locations. The company invested about $4 billion in its Canadian expan- sion. In 2013 it aggressively opened 124 stores.? 99 In 2014 Target abruptly announced it would shut down its Canadian stores.3 Target suffered a $2 billion loss in its failed Canadian expansion plan. The problems that led to this disaster were many. Target misread the market and made a false assumption about Canadians' preferred buying habits. Unlike their American neighbors, Canadians are not as interested in the "one-stop shopping" experience as Target had assumed. Consumers in Canada were also disappointed that the prices in Target's Canadian stores were higher than in its US stores.? Furthermore, Target had significant supply chain issues. The stores often had empty shelves. In other situations they had excess inventories, resulting in major clearance sales. Finally, Walmart didn't stand by and let Target simply expand into Canada. It cut prices and expanded the number of its stores.?is1s CHGIL OCUGL UGqe ouue CgeGe to pe ga doana ecan26 oL uG USEnLG O QUESTIONS nsgnhowis O recpuojo M pe necq wu 26sK ong qur2 GUAILOUG 1. Using the product development process, in which stages did Target fail? Explain what it did wrong in DI those stages. In its product analysis and screening, what questions did Target fail to answer concerning its retail service operations? Explain how it failed to answer these questions. 2. coubrip Also in its product analysis and screening, what questions did Target fail to answer concerning the competi- 3. tion? Explain where it went wrong. nimsets 916 PIGTO iw bns 4. Explain how use of the house of quality may have prevented this failure. Which "rooms" or areas of the house would have helped in the product analysis and screening stage? quce
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