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Target Canada: Internal Analysis - Case Study Example

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 This study "Target Canada: Internal Analysis" discusses the following internal analysis tools will point out some of the major issues concerning the management at the moment. The study considers strategy and unexpected supply chain problems in Target…
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Target Canada: Internal Analysis
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Download file to see previous pages In America the company is following a very balanced generic strategy combining broad low-cost and focused differentiation; their merchandise is steeply-priced yet the perception is that the choice and quality available is more exclusive. This strategy is strongly supported by marketing endeavors which take up to 2% of the company’s revenue (Strauss, and  Krashinsky, 2013). While the same strategy was expected to be followed in Canada in reality due to the pricing and operational issues (discussed in detail below) the company has shifted to a “broad differentiation” strategy by offering higher quality service and designer, branded products at a significantly increased price than both their local and US counterparts. However, the strategy was not well planned out and the company is struggling with its execution in the market.
This tool can help in understanding the larger strategic vision of an organization; for Target Canada this analysis is important since their initial entry strategy failed to elicit the desired response. This framework describes Target’s strategic brand position in the context of the Canadian retail market:
The Question of Value: The brand of Target is built upon a perception of high-quality choices available at a low price for the quality-conscious customer. This value proposition had served the retailer well in the US market, gaining its loyal customers on both sides of the border. However, in Canada logistic and legal problems meant that the chain to increase its price point in the market as compared to both local competition and their US counterparts. This has created a situation where the brand value has deteriorated for the customers. ...Download file to see next pagesRead More
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