Target vs Wal Mart
Target has a long standing tradition of providing superior products to consumers. Whether it is clothing or your groceries, Target is known for being a top competitor to the retail giant Wal-Mart. Target also has a long standing tradition of making economic decisions that benefit the consumer. In their most recent decision to move into Canada, Target is now moving into international business. Their brand name is not widely known throughout Canada, but given their reputation in America, Target should have no problem entering the Canadian market.
In this new change for Target, they have also made a big decision in deciding to go with Starbucks as their coffee provider inside their stores. This is big news to Canadian consumers whose local coffee shop is Tim Horton’s, because Target was considering Horton’s in their new shops [ (Target to Partner with Starbucks in Canada, 2012) ]. Target is continually growing in the United States and now internationally in Canada, and this corporate giant has the potential to continue its economic growth for years to come.
The first of three principles Target is using is learning Canada’s standard of living, and how that will affect its ability to provide goods and services in a new market [ (Mankiw, 2012) ]. Analyzing the living standards in Canada compared to its US market is a great way for Target to learn how they can provide goods and services to the consumer. I the 4th quarter of 2011, a recent 15 year study by Statistics of Canada, showed the standard of living in Canada is increasing more than the United States [ (Stechyson, 2011) ]. By knowing what the standard of living is in Canada increases Target knowledge of the culture, and the merger with Starbucks ill benefit from this increased standard of living.
The second principle Target is utilizing is responding to incentives. Becoming an international corporation has benefited a lot of companies around the world. Their top competitor, Wal-Mart has been
In this new change for Target, they have also made a big decision in deciding to go with Starbucks as their coffee provider inside their stores. This is big news to Canadian consumers whose local coffee shop is Tim Horton’s, because Target was considering Horton’s in their new shops [ (Target to Partner with Starbucks in Canada, 2012) ]. Target is continually growing in the United States and now internationally in Canada, and this corporate giant has the potential to continue its economic growth for years to come.
The first of three principles Target is using is learning Canada’s standard of living, and how that will affect its ability to provide goods and services in a new market [ (Mankiw, 2012) ]. Analyzing the living standards in Canada compared to its US market is a great way for Target to learn how they can provide goods and services to the consumer. I the 4th quarter of 2011, a recent 15 year study by Statistics of Canada, showed the standard of living in Canada is increasing more than the United States [ (Stechyson, 2011) ]. By knowing what the standard of living is in Canada increases Target knowledge of the culture, and the merger with Starbucks ill benefit from this increased standard of living.
The second principle Target is utilizing is responding to incentives. Becoming an international corporation has benefited a lot of companies around the world. Their top competitor, Wal-Mart has been
Bibliography: Canada, S. (2012). Latest release form the Comper Price Index. Toronto: Statistics Canada. Mankiw, G. (2012). Principles of Macroeconomics. Mason: South-Western Cengage. Press, T. C. (2012, March 1). Fairweather reaches agreement to stop using Target name. Retrieved March 1, 2012, from The Canadian Press: http://www.canadianbusiness.com/article/68727--fairweather-reaches-agreement-to-stop-using-target-name-on-its-apparel Stechyson, N. (2011, December 21). Living Standards in Canada growing at a faster Pace than the US. Retrieved March 1, 2012, from Canada.com: http://www.canada.com/business/Living+standards+Canada+growing+faster+pace+than/5892880/story.html Target. (2011). About US, Locations. Minnesota: Target. Target to Partner with Starbucks in Canada. (2012, February 15). Retrieved February 19, 2012, from CBC News: http://www.cbc.ca/news/business/story/2012/02/15/target-starbucks-canada.html Walmart Canada. (2012, February 27). Retrieved March 1, 2012, from Wikipedia: http://en.wikipedia.org/wiki/Walmart_Canada Wal-Mart. (2011). Company, Locations. Bentonville: Wal-Mart. World Bank. (2012). Gross Domestic Product Canada. Google.