Target Express (A) Case Study Analysis

Question 3

Supposing that David intended to accept a turnaround, support factors and critical success factors of the turnaround plan;the company’s management team had lack of knowledge and competence about the decision making process, and it did not know the ways of improving the bottom line performance. In the similar way, the key concern of the company was the financial budget for the year, which adversely impacted its performance and its financial health. The company was presented with several challenges and lenders were concerned regarding the debt.

Shift the focus of Business to Consumer to Business to Business

On account of the fact that the number of companies put major emphasis on the market of B2B instead of B2C market;a significant growth in the e-commerce as well as the advent of the internet, expected to increase the B2C market size, David should shift the focus of the business to consumer to B2B, as B2C was not suitable for the company and has resulted in  revenue loss. It is because of the reason that approximately 90 percent of the deliveries of the company were in the B2B market, which resulted in around 56 percent gross margin.

The drastic increase is witnessed not only in number of online shoppers and electronic commerce enterprise, but also in the turnover rate of electronic commerce market, throughout the world. The certain trends in the e-commerce industry, including the rise of social commerce, mobile commerce, booming industries of bid data and internet financing; provide a solid foundation for Target Express to operate in the industry. The growing population of smartphones and an increased number of internet users have contributed to the impressive development of e-commerce, due to which the company would be able to thrive in the upcoming years.(Morrison, 2000)………………………………..

 

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