The History of Target (Essay Sample)

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The History of Target
An exploration of Targets history educates on her downfall, impacts, and her aspirations in business. Today, the business seems to be on its low levels.
One of the primary reasons Target has lost its aim or rather has forgotten its formula for success is attributable to her getting out of touch with customer taste. An examination at a downtown Target outlet at Chicago revealed that the shop offered out-fashion women clothing that any woman under 60 would spurn. According to the Economy Newspaper on an article "Why Target Lost its aim," the investigation discovered that many consumers feel that Target no longer meets their needs. Due to this loss of business focus, Target is closing major ventures in Canada and poorly performing shops in America at a cost of $ 5.1 billion (par.1).
Those who know the history of Target hardly believe her current business troubles. Ten years ago, the business was thriving and had a chic image that pooled consumers. She had managed to position her positive image in the mind of the target market. In 2011, a reversal of fortune began taking route. Her fashion offering were no longer impressive and competitors took advantage. Target had lost her Chic-image and begun to major on food and consumables (par.1).
In 2013, the firm suffered an enormous setback through a massive hacking during the pre-Christmas season, compromising the credit card and other details of around 70 million customers. As a result, clients deserted Target with a consequent effect of profit lunging (par.6). It has emerged that Target’s Security team had warned of data attack at least two months before it happened. The management did not implement their advice for review of its payment card system. The hacking attack was strategic as it occurred when Target was updating their payment terminals and as shoppers did preparations for the Christmas holidays (Kratsa par.2). However, retailers receive volumes of security warnings more the government and as such, it becomes impossible to decide which ones to act. There are reports that Target receive numerous weekly threats and can only prioritize at a few (par.2).
Target’s loss in Canada was due to inadequate market research on customer needs. The management of her ventures in the country did not act on customer feedback. The consequence was closure of her first international expansion (Economy par.1). There is, however, some hope for the store. Her share prices have begun recovering. The Targets Top CEO, Mr. Cornell has given it a good start but still there is a lot to do. As Target is in the process of getting back to her former glory, she has laid down strategies to help attain the objective. One of their plans is retrenching several thousand employees. Target’s Minneapolis headquarters will be worst affected by the policy, (Ziobro par.4). Through this strategy, Target aims to cut costs by $ 2billion and invest in technology and smaller urban stores among other upgrades (par.4).
Market research has shown that no investment effort can get Target Canada to profit until at 2021. The cost of closing the venture has been shutting 133 stores, laying-off 17,600 employees (Montemayor par.5). Closure of Target Canada came at a time when Canada has a sluggish economy and loss of 17,600 jobs is a massive blow to the country. At this moment in time, there are falling oil prices forcing Western Canada companies to reduce their operations. In addition, the government is at a hold on hiring. In essence, closure of Target Canada partly adds negative pressure to Canada (Yew and Madhavi par.1).
Target is an example of big business ventures in the world today. Her history details complete perspective and information on how lack of business focus can have a far-reaching impact.