Asian Business and Global Economy
Qing Yao Wang
Target Is an American retailing company headquartered in Minneapolis, Minnesota.
Target has expanded from the United States to Canada and Australia. The next country that we hope to expand is in Singapore, which is the first country in Asia. Target will consist of multiple departments selling products from grocery, shoes, clothing, accessories, to electronics. The intended target market is aimed towards middle class families with a household income of
$40,000 SGD and has kids at home.
We hope to expand Target into different regions of Singapore to maximize profit, increase revenue by more than 5% every year and reduce the cost of production by 10%. Within
5 years we expect to see positive results of increase in profit margin, sales, and net income. To make Target your preferred shopping destination in all channels by delivering outstanding value, continuous innovation and exceptional guest experience by consistently fulfilling our Expect
More. Pay Less. brand promise. Target is committed to provide their customers with the best customer services every time they shop. There are always employees ready to assist customers with their needs at any time of the day. Products are at an affordable price and the store will be open 24/7 for convenience.
There are different choices of entry mode to penetrate the target country to ensure the success of Target. After a long discussion, my team has decided to narrow down the entry mode to Franchising and Equity Joint Venture. If Target was to start up in Singapore through franchising, it provides the franchisee a package, which includes trademarks and knowhow, local exclusivity, management and financial assistance, and joint advertising. The brand itself is widely recognized in the United States, Canada, and Australia because Target is the second largest discount retailer with WalMart being the largest. Equity Joint Venture is another choice of entry mode since it reduces an immense amount of liability. Sharing of assets, risks, profits, and participation in the ownership of Target. Instead of having similar departments as the United
States, the liability of Target can be divided amongst local grocery stores, clothing departments, and other suppliers if they partake in this enterprise.
It is important for Target to advertise their products and services because Singapore will be the first country in Asia that Target expands to. Advertisement in newspapers, magazines, television, billboards, social media, emails, and word of mouth will be able to penetrate the target market with ease. The performance of Target is extremely crucial because it determines whether or not the company is successful. We can monitor the performance of how well Target is doing based on quarterly income statements to check which area of the company needs improvement. There will be employee evaluations to ensure that they are properly trained for any situation when encountering a customer.
TABLE OF CONTENTS Executive Summary__________________________________________________________ # 1 Introduction________________________________________________________________ # Country & City Screening_____________________________________________________ # Market Attractiveness & Potential_______________________________________________ # Entry Mode Strategies & Selection_____________________________________________ # Implimentation Issues_________________________________________________________ # Conclusion_________________________________________________________________ # Works Cited______________________________________________________________ #