E-Business

Target and E-Business

Student

ACC/340

January 27, 2014

University of Phoenix

Abstract

Electronic business (E-business) is the process of conducting business on the internet (Nelson, 2005). The business aspect of the definition relates to all forms of business including sales to customers, servicing those customers, and collaborating with other businesses. E-business provides opportunities for businesses to reach a customer base that extends worldwide, taking retailers from brick and mortar to international sales. This paper will evaluate the effect e-business has had on Target over the years and the advantages, limitations, and risks that are involved in the endeavor.

Target and E-Business

Target Corporation began as a dry goods company named Dayton Company established by the founder George Draper Dayton in 1902. Mr. Dayton developed a brick and mortar business that flourished during the early 1900’s (Target, 2014). The company’s first expansion occurred in 1954 with the opening of a Dayton’s in Rochester Minnesota. Following this first expansion, Dayton’s continued to open more locations in the surrounding suburbs of Rochester. In 1962, the company changed the store name to Target and was a “new idea in discount stores” (Target, 2014). By differentiating itself as a discount store chain, the company opens its first store outside of Minnesota, in the Denver metropolitan area. By 1967 corporation has expanded to a national scale and continued the success of affordable, quality merchandise, community giving, and good corporate governance. By 1998, Target stores totaled 851 units with annual sales of $23.0 billion and more than nine million registered Target Guest Card users (Target, 2014). In 1999, Target launched its e-commerce website that offered merchandise that was not available in-store. By 2003, Target had teamed with Amazon.com to continue the strong increase in on-line sales.

Target continues to grow internationally through the...