• How important is the resource-based model to explain how well firms perform in the retail industry?

This is related to Strategic Management class

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Strategic Focus Target Lost Its Sway Because Tar-zhey No Longer Drew the Customers Target became known by consumers as Tarzhey, the retailer of three months later. He was a top executive at PepsiCo and cheaper but thic products. The firm offered a step up in quality had experience heading Sam's Warehouse for Walmart as well goods at a slightly higher price than discount retailers such as Cornell is the first CEO to be hired from outside the company Walmart but was targeted below major first ine retailers such and most of his experience is from outside the industry as well Macys and Nordstrom Additionally, it promoted its stores to offer Since arriving on the job in August of 2014, Comell has started one-stop shopping with clothing toys, health products and food making changes. For example, he is trying to regain Target's chic goods, among other products for many years. Tarzhey hit the image by focusing on fashion, infants, children's and health bullseye' and performed well serving this large niche in the departments to increase customer traffic and sales. The focus in market. But the company took its eye off the target and began foods is more upscale more organic food, specialty granola, cof losing market share along with other poor strategic actions) fee and tea, wine, and beer Sales exceeded the forecast in the The first major crack in the ship appeared with the announce fourth quarter of 2014 with the highest growth in three years in ment of a massive cyberattack on Target's computer system January 2015. Comell so closed all Canadian stores and thereby that netted customers' personal information. The attackexposed laid off 17.600 employees, a painful but necessary move. Finally customers (data on 70 million customers) to potentially sub he announced another layoff of close to 2,000 employees in stantial losses due to credit card fraud Not only was this a pubic March 2015 Most of these employees welcome from the main relations disaster. It drew a focus on Target that identified other office with the intent to make Target more nimble and agile. problems. Theight on Target showed that the strategic decision to enter the Canadian market in a major way (133 stores across multiple geographic areas) was failing. Finally, the careful analysis fely Potgan showed that Target was losing customers to established competi tors and new rivals, especially internet retailers eg. Amazon.com Target's marketing chief stated that's not that we became insular. We were insulad This suggests that the firm was not analyzing its environment. By alowing rivals, and especially newer Internet competitors to woo the company's customers it lost sales market Share and profits. It obviously did not predict and prepare for the significant competition from internet al. Competitors were offering bemer value to customers perhaps more variety and convenience Lily Pulitzer has been providing bold fashions for resort wear for more than 50 years through online sales) When combined with the loss of consumer confidence because of the masse hack of personal customer data, Target's reputation and market share were smutaneously harmed Interestingly, Comel did not take the large corner suite The unparalleled failure of the Canadian operations within accorded to the former CEOs but instead chose a smaller a very short time (two years) also showed a lack of market office near the company's market data collection site. There a understanding likely stemming from the failure to analyze the staff of ten employees gather information from social media market. It is probable that all of the problems Target was expe- sites such as Pinterest, Facebook and Twitter and from televi Tiencing were transferred to its Canadian operations as well in Sion news from nine large TV screens. The CEO stops by every addition, it failed to attract customers from its major Canadian morning to learn the latest information. These actions alone retalers, such as Loblaw Companies Canada's largest grocer suggest the importance he places on gathering and analyzing that recently introduced low-cost clothing boutiques. Costco data on the market and competitors actions and Walmart were also well-established in the Canadian mar- Sources: 2015. What your Cding Smelly : CHOCO ket. Target was unable to differentiate the value it provided uma Shona www.como Mch Aussbuch 2015 from the established retailers in Canada. It also experienced Togel kudaiwne www.times.com Tabuch 2015. Tota New problems in its Canadian supply chain suggesting again that time.com Mandi & 15 Tagetes grow at did not fully understand the business markets in Canada in the www February before entering the market gets new CEO the back on www Pe Because of all of the problems experienced Targets CEO Futures for women resigned in May 2014. A new CEO Brian Cornell was hired Target wel www.com Pure NG 80 OOO DOD F4 so DIN F3 F5 F6 F7 FB 79 $ % & 3 1 C Y C