Target Case

GO International

What do Wal-Mart, Starbucks, McDonalds, Dominos Pizza, Coca-Cola and Pepsi all have in common? The answer is quite simply; each and every company has expanded their operations outside of the United States. By expanding into international market, each company has benefited in one form or another. The most obvious benefit for a company considering international expansion would be increased sales. For example in 2006, Wal-Mart (the world’s largest retailer) announced for its International Division fiscal year end sales of $62.7 billion, an 11.4 percent increase from 2005.[1] By catering to an international audience, Wal-Mart manages to sell nearly 11 times more merchandise than Target. With a little more than 95 percent of the world’s population living outside the United States[2], one begs the question; Why hasn’t Target Corporation expanded its operations outside of the United States?

As a new team member in Targets Business Development office, your first assignment is to develop an international entry strategy for Target. To do this your supervisor has provided back ground information about Target as well as information about the current international market. Furthermore your supervisor has included a list of factors to be considered when deciding which country Target should enter first. Carefully read the information, consider every opportunity and remember Targets motto for life is to be Fast, Fun and Friendly.

Target Stores

Clean, organized and a welcoming smile, this is what you would expect upon entering any Target Store in the country. Designer trends with low prices in addition to the fundamental of life, makes Target the shopping destination for millions of guest who visit every year. A commitment to great prices, continuing innovation as well as pledge to make communities a better place to live in, Target has created a one-of-a-kind experience.

It all started in 1962, in the small suburb of Roseville, Minnesota. Target,...