Many people are excited with the launch of a Canadian division of Target. This new entry into the market however is bad news for already established companies like Sears and Canadian Tire, according to Barclays Capital.

The invasion of American companies into the Canadian market has overwhelmed many local brands and has forced many businesses to concede.

There is a reason why Canadian businesses are falling to foreign takeovers; the number one reason is management.
A clear strategy was put in place for Target, they innovate, their product lines appeal to consumer wants, and store locations are precise and strategic. Numerous Canadian retail companies have not risen to the challenge of changing gears and differentiating themselves. Many companies trying to compete are now at a stalemate with managerial decisions, as they would be required to completely transform their business to keep up with the market.

Target presents a differentiation strategy. If it is anything similar to its American counterpart Target offers quality products at lower prices, which explains why there is always a huge influx of Canadian consumers during the holiday season. Upkeep and constant transformation are required for any business to remain relevant in the market.

http://business.financialpost.com/2012/10/01/target-to-steal-sales-from-sears-canadian-tire-barclays/