In: Operations Management
all the following factors contributed to the target's failure in Canada?
with ERP the entire organization is considered?
There are many factors for the Target company to get fail in Canada.Lets us discuss some of them-:
1)Did not stand on tag line-in Canada,target lacks in customer intelligence in matter of prices between USA and Canada stores.After making decision for Exit,company did survey to ask about the company,what are thoughts of customers and 89% among surveyed told Target was not up to his tagline i.e" Expect more,Pay less" and many found that Canada's Target was Inferior the one in US when it said offering low prices as have high prices.
2)Customer Experience-Study showed that the 70% of its customers in Canada have already shopped with the Target USA store and 40% expressed their opinion as they found USA stores experience much great than the Canada's one.As once customer gets treated it becomes experience and next experience should be same as per standards or better than last one.So, this was also a major factor for failure of Target store in Canada.
3)Distribution system-The distribution system of goods was not adequate and supply chain management was not good for the products in Canada.People complained about very low inventory of the products and less variety and due Improper supply chain it was not able to offer online shopping to customers.
If we talk about ERP,it tried to roll out ERP system and without any experience it happened as POS system was not properly modified to get use for Canada purpose and lacked in training the staff to use technology.