Targets operation in Canada Essay Example | Topics and Well Written Essays - 750 words

Targets operation in Canada - Essay Example The retail store failed miserably in its market strategies such as pricing. This stands out as a major influence on customers. From the start, Canadian shoppers felt that the prices maintained by Target were too high while compared to other stores. It created a perception that it was the most expensive among its competitors. Targets management was not observant and reactive about pricing. They failed to see the power of low pricing in Wal-Mart Canada. Additionally, Target did not compensate for its higher pricing with better services. The customers’ experience at Target stores was not good and prices made it worse. It has been shown that some customers are willing to forego a slight increase in price provided the experience they receive is a stand-out feature from the rest of the competition. Other competitors had the edge in pricing as well as customer service. Only 18% of the respondents questioned by Forum Research said that they were very satisfied with Target. This percen tage was the lowest level of satisfaction among all the other competitors. This shows that   Target’s management did not prioritize customer satisfaction.The supply chain management also attributed to the failure of the business in Canada. Customers were not pleased by empty shelves in stores. However, stocks were piling up in Target’s warehouses at a faster rate they were being sold. There were delays that caused the goods from hitting the shelves on time. Target’s supply chain was marred by inconsistencies between the actual inventory level and the computer records. There were delays caused by verification of the inventory. The shipments needed to be verified manually. This is a time-consuming process that increased work for the store workers while also leaving the shelves empty.