Target has a history of success within United States and has managed to establish a reputation of having higher quality product offerings and retail environment than its competition. Target has seen steady growth with regard to expansion within the United States, it has not saturated the market. Target has historically launched stores in the metropolitan areas of larger cities and currently operates stores in 48 states. Recent global economic trends demonstrate that a Target expansion into Mexico will generate positives results for those involved. Mexico has seen continued economic growth and has inflation has been kept under control. Retail sales in Mexico have grown at a steady pace and market growth exceeded growth in GDP in 2015 (Euromonitor, 2016).
Financing and consumer credits have developed as crucial Mexican retail tools. Many Mexican retailers are have become financing bodies through providing deferred payments at a cash price (Euromonitor, 2015). Zero-interest monthly payments have become the norm in the region. In addition, many retailers are seeking to expand throughout Mexico. They are targeting areas with high foot traffic (Euromonitor, 2015). Target has the ability to fit into the trend with CityTarget. With expansion, department stores and grocers have …show more content…
Although, as a result of cultural and economic differences between Mexico and the United States, Target will be required to implement a completely different strategic approach for expansion into Mexico than it did into Canada. For Mexico, Target must enter the market via joint venture. Joint venture will “reduce the risks of expropriation and harassment by the host country” (Deresky, 2012). Wal-Mart entered the market in this manner and it has been incredibly successful with its operations in
Financing and consumer credits have developed as crucial Mexican retail tools. Many Mexican retailers are have become financing bodies through providing deferred payments at a cash price (Euromonitor, 2015). Zero-interest monthly payments have become the norm in the region. In addition, many retailers are seeking to expand throughout Mexico. They are targeting areas with high foot traffic (Euromonitor, 2015). Target has the ability to fit into the trend with CityTarget. With expansion, department stores and grocers have …show more content…
Although, as a result of cultural and economic differences between Mexico and the United States, Target will be required to implement a completely different strategic approach for expansion into Mexico than it did into Canada. For Mexico, Target must enter the market via joint venture. Joint venture will “reduce the risks of expropriation and harassment by the host country” (Deresky, 2012). Wal-Mart entered the market in this manner and it has been incredibly successful with its operations in