question archive The Dayton Dry Goods Company, which saw its inception with a single store in 1902, has exponentially grown into the second-largest discount retail store in the United States today
The Dayton Dry Goods Company, which saw its inception with a single store in 1902, has exponentially grown into the second-largest discount retail store in the United States today
Subject:ManagementPrice: Bought3
The Dayton Dry Goods Company, which saw its inception with a single store in 1902, has exponentially grown into the second-largest discount retail store in the United States today. Fast forward 60 years later and the Dayton Dry Goods Company has now become the more recognizable and iconic Fortune 500 Company we are all familiar with today; the Target Corporation. Target is second only to its biggest rival; Wal-Mart Stores, Inc. Wal-Mart will be discussed further, and with more detail later on in our proposal. Target, until recently, was exclusive to the United States. Target took its first steps towards globalization in 2011 with the announcement with its interests to expand in Canada. Targets’ presence in Canada became official when, on March 5th, of this year to be exact, Target opened its first international store in Ontario, Canada.
Target is commonly referred to as a big-box store. A big-box store is a retailer whose store is proportionately larger than that of other stores that sell similar products at a costlier price point. According to Targets’ website, their mission statement is as follows, “Our mission is to make Target your preferred shopping destination in all channels by delivering outstanding value, continuous innovation and exceptional guest experiences by consistently fulfilling our Expect More. Pay Less.® brand promise” (Mission & Values). In layman’s terms, Target wants to be a one-stop-shop for all your everyday needs: clothing, groceries, toiletries, electronics, pharmaceuticals, and etc. Furthermore, Target leverages its large size to buy in bulk at a cheaper cost and passes on said savings to its customers.
Although Target is only in its infancy in regards to globalization, it is essential to keep up with its competitors to maintain and grow its current market share. Wal-Mart is the benchmark when it comes to retailing, among other things. For Target to stay competitive and continue to grow, it must implement a more globalized outlook. Currently, as of February 28th of this year, Wal-Mart operates in excess of 390 stores in China. As of now, Target has absolutely no presence in China. China is the largest populated country in the world, hence it is essential for Target to take a proactive role and position itself right alongside Wal-Mart China. Alongside Chinas growing population, China also has a rapidly emerging middle class. While Wal-Mart focuses more on low prices, the quality of their products are compromised. Target carries higher quality products at a comparable price point. In addition to Chinas growing middle class and given the Chinese are becoming wealthier, they are demanding products of higher quality. This is why it is essential for the Target Corporation to pursue the Chinese demographic.
