Comparison between Two B2C Market Entry Failures
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The term business to consumers (B2C) refers to the process of directly selling products and services to customers who are end users of their products or services. This case study is comparison between two B2C market entry failures. One is an international company that failed in Canada second is One Canadian company that failed in International market.
INTERNATIONAL FIRM THAT FAILED IN CANADIAN MARKET
Firstly, I selected the Target Corporation. Target Corporation is one of the largest general merchandise retailers with stores in all over us. Headquarters of Target Corporation is in Minneapolis, Minnesota, it is the hometown since the first Target Corporation opened in 1963 under Dayton Dry Goods company (Target, n.d.). Target Corporation is very successful in U.S but the expansion to Canada was failed. Brian Cornell, Target Corporation CEO, who decided to close the store after deciding that it would not be profitable until at least 2021. Market exit would stop the continued losses of Target Corporation in Canada and help the company concentrate on its U.S. strategic initiatives. Global expansion had been on Target Corporation’s idea for some time and boom out retailer’s desired path. Canada is specifically held appeal as it is not only geographically close and often English-speaking but also due to the fact Target Corporation is familiar to the many Canadians who had visited the stores in the U.S. Also, Canada used to be much less affected by way of the recession than the U.S., growing the hold of a Canadian venture. What Target Corporation can also no longer have entirely valued used to be that the Canadian cut-price quarter is a mainly challenging market Unlike the luxury segment, the discount market is saturated using opponents such as Wal-Mart, Costco, Giant Tiger, and Sears. (Dahlhoff, 2015).
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Following are the reasons to fail Target Corporation in Canada, the store locations were often out of the way, and they did not match the U.S. feel of Target. The new stores have faced supply and product replenishment problems, leading to stock-outs. The poorly stocked shelves, a range that varied from the U.S. stores, and often higher prices than in the U.S. combined to deter traffic, particularly for Canadians familiar with Target Corporation. Such problems have made it difficult to attract brand new customers (Dahlhoff, 2015). First impressions count, and it’s hard to win back their trust when consumers are frustrated. Target Corporation was unable to introduce the unique U.S. model in Canada despite the executional issues. First one is Location. Target Corporation’s Canada location is less than standard. Target Corporation bought more than 120 Zellers stores from Hudson’s Bay Co. Canadian department store chain in 2011. But the truth is that many Zellers stores are dumpy, badly created for the big-box format of Target Corporation, and in locations not visited by Target Corporation covets middle-class buyers and the loss from a struggling low-end store of many bad locations was at the root of the damage to the cheap-fashionable attraction of Target Corporation in Canada. The stores were smaller than the U.S. stores formats of Target and it took more money to expand and adapt to its red-and-white style trademark. Another reason is that Canadian customers complained that the prices of Target Corporation in the US are lower. The failure of Target Corporation in Canada shows the importance of understanding not only your brand’s preferences, but also the expectations of your consumers and their previous experience with the product. The store shelves of Target Corporation Canada are disorganized and bare, and there is limited selection also failed to establish a suitable distribution system which affected consumers to complain about low inventory online. Then a former Target Corporation employee complained in an interview with the Journal that he had to fill half of a whole aisle with Tide detergent when there was nothing else in the store to fill the shelves also Target Corporation is having a hard time competing with Wal-Mart, which two decades ago expanded into Canada In the absence of enticing products, Target Corporation found itself having to compete with Wal-Mart, who has been in Canada since 1994 and has become successful in defending its hard-fought market share in Canada. Target Corporation accepted that it had not provided enough high prices, generating an impression that items were more costly than needed and upsetting consumers there (Patterson, 2015).
ONE FIRM FROM CANADA THAT FAILED IN INTERNATIONAL MARKET
BlackBerry Limited is a multinational Canadian company that specializes in business software and the Internet of Things. Originally known as Research in Motion (RIM), the former BlackBerry mobile product designer and tablet is best known to the general public. Blackberry has been the company of the first broadly accepted luxury smartphone brand in the world in many ways. But now BlackBerry holds 0% of the share in smartphone market. Following are the reasons why BlackBerry failed. First one is that slow response to competition from the market. Slow response to competition from the market. The management of BlackBerry firstly refused Apple’s iPhone touchscreen, saying users prefer their physical keyboard. BlackBerry immediately introduced a mobile phone when the iPhone sold well, which often did not work well and was met with awful reviews. Later BlackBerry bring back the keyboard, but it would prove misguided as s the market transferred to larger real estate monitor. Secondly concentrating on the business of the wrong end. All through developing sleek user interfaces and alternative applications, Apple and Google made smartphones available to the mass market, BlackBerry continued relentlessly focused on its corporate customers and their security and networking needs. This was the problem of the typical innovator at work BlackBerry catered to its most significant clients, producing most its revenue and profits, while ignoring the end market hat would eventually become the most applicable. Next one is misunderstanding of the value proposition of the smartphone. BlackBerry invented largely around feature development due in part to its business focus–faster email, better security, etc. The smartphone’s value proposition as a forum for personal productivity and entertainment was overlooked in doing so. While Apple and Google built a moat around their third party software ecosystems, BlackBerry Messenger (BBM), was conflictingly diversified by permitting BBM to be downloaded only on BlackBerry ignored the potential third building a larger user base across platforms, BlackBerry ignored the potential third party messaging apps such as WhatsApp eventually took advantage of. Another failure is poor execution. BlackBerry couldn’t operate correctly even when it wanted to adjust. A huge failure was the release of the touchscreen storm in 2008. Even its new innovations and new phones were suffered from disappointing product launches, weak usability, and incoherent quality proposals (JLuo, 2018).
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B2C customers are motivated by emotional and physical needs. This means that advertisers are more likely to appeal for items like a higher status, a more appealing look, or restricted deals that pressure consumers to act now or lose out. B2C marketers also focus on building the reputation of their product and increasing consumer brand loyalty, but their overall advertising targets appear to be more transactional. B2C shoppers often make less frequent purchases, and there is no expectation that they will necessarily buy back from the company. Target Corporation and BlackBerry were successful, but some strategies wouldn’t work among the target market.
- Dahlhoff, D. (2015, January 20). Harward Business Review. Retrieved from hbr.org: https://hbr.org/2015/01/why-targets-canadian-expansion-failed
- JLuo. (2018, February 1). Digital Initiative. Retrieved from https://digital.hbs.edu/platform-digit/submission/the-rise-and-fall-and-rise-again-of-blackberry/
- Patterson, H. (2015, January 15). Business Insider. Retrieved from businessinsider.com: https://www.businessinsider.com/why-target-canada-failed-2015-1
- Target. (n.d.). A bulleseye view. Retrieved from https://corporate.target.com/about/
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