Target Corporation’s International Expansion: Canadian Entry, Exit and Re-Entry

In an era of globalization, companies can enter a market, conduct business there, and exit if their initial objectives are not met. When entering a new market, firms must perform due diligence and conduct market research to understand the institutional, cultural, economic, administrative, and political differences, selecting an effective business strategy that ensures success in the new market. They need to consider whether the strategies used in their home market can be applied or if new strategies should be developed for the new market. This case illustrates how Target, Inc. operated in Canada and failed to recognize the differences between the Canadian and U.S. retail markets. It also demonstrates how a firm can effectively manage its departure from a market, learn valuable lessons, and aim to return with improved strategies.