Target's International Expansion to Panama

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Target Corporation is among one of the largest retailers in US with its headquarter located in Minneapolis, Minnesota. The company is recognized within the top 500 most valuable brands as of 2012 as well as the top 25 retail brands in 2012 (Target Corporation SWOT Analysis, 2013). Target took birth on May1, 1962 as a “new idea in discount stores”. Gregg W. Steinhafel is the current chairman, president and CEO of Target (www.corporate.target.com). The company has a vast product offerings such as- household essentials, including pharmacy, beauty, personal care, baby care, cleaning, and paper products; hardlines comprising music, movies, books, computer software, sporting goods, and toys, as well as electronics that consist of video game hardware and software; apparel and accessories, such as apparel for women, men, boys, girls, toddlers, infants, and newborns, as well as intimate apparel, jewelry, accessories, and shoes. It also provides food and pet supplies, including dry grocery, dairy, frozen food, beverages, candy, snacks, deli, bakery, meat, produce, and pet supplies; and home furnishings and décor, such as furniture, lighting, kitchenware, small appliances, home décor, bed and bath, home improvement, automotive, and seasonal merchandise comprising patio furniture and holiday décor (www.finance.yahoo.com). It has 1,921 stores with an approximated labor force of 361,000 fulltime and part-time employees. Target reported revenue for 2012 was $73,301 million with a 6.1% increase in total sales (www.investor.target.com). Targets global expansion limits to India and Canada for now with 37 distribution centers. It is also aggressively penetrating the online market via offering its products and services on the official website. (www.... ... middle of paper ... ...ional division coordinates and monitors overseas activities and reports directly to the CEO on these matters” (Luthans & Doh, 2012). Conclusion Overall, Target is financially stable and it has the capacity to invest in an international expansion project. Also as we examined, Panama its currently in a position of economic growth, and embraces foreign investment. Even though the American culture is different from the Panamanian culture, we are confident that with the recommendations, Target will be able to succeed in Panama. Specially, if they hire the local legal and marketing team, which will help them infiltrate the market and use their business model as a competitive advantage. We are aware that there are limitations to the data that we used. However, we are confident that the data is valid and useful to assess the company, the country, and our recommendations.

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