Description 3 attachmentsSlide 1 of 3attachment_1attachment_1attachment_2attachment_2attachment_3attachment_3.slider-slide > img { width: 100%; display: block; } .slider-slide > img:focus { margin: auto; } Unformatted Attachment Preview Company Cc1se Target A Serious Contender in the Same-Day Delivery Business Once upon a time, there were two major forces dominating the discount retail market: Walmart and Target. The two retailers of­fered similar merchandise assortments, and their stores were close to one another-often facing off from opposite sides of major boulevards. The two were constantly compared- the press rarely covered one without mentioning the other. Walmart was far and away the market leader. And although Target was a distant runner-up, its stylish “cheap chic” position­ing and “Expect More. Pay Less.” mantra made it a formidable challenger to Walmart’s always-lowest-price positioning. In fact. for years Target grew at a faster rate than Walmart, nibbling away at the giant’s market share and posing a genuine threat. But what a difference a decade makes. Since the Great Recession of 2008, Walmart’s annual revenues have increased by more than S140 billion while Target’s have barely moved. Not only has Walmart improved its game, but increased competition from Amazon, Costco, Kohl’s, and dollar stores have flattened Target’s growth. Still, Target hasn’t given up. It has doubled down on improving its customer experience while at the same time cutting corporate costs. So far, however, its efforts haven’t seemed to make much difference. All that may soon change. Target has made a major invest­ ment that it hopes will help it to regain its edge in the retail world and restore its growth. For a cool $550 million in cash, Target recently acquired Shipt. the exploding startup with a thriving same-day delivery network across the United States. With on­line grocery sales exploding, the future of retail favors companies that can deliver goods fast and cheap. With the Shipt acquisition, Target is sending a message-it’s serious about establishing a competitive advantage in home delivery. Target plans n9tonly to increase sales of its current inventory but also to become a major player in an area of retail where it has languished-groceries. A New Way to Deliver Groceries Founded in 2014 by a 32-year-old high school dropout, Shipt quickly established itself as a force in the home delivery busi­ ness. After a few failed models, Shipt focused on groceries. Members get unlimited same-day grocery delivery on orders of $35 or more for just £99 a year. The Shipt app and website offer users a seamless experience for ordering and receiving grocer­ies and general merchandise. But Shipt is not a grocer. It’s a home delivery service. Rather than invest in its own inventory, Shipt built its business by partnering with grocery chains such as Kroger, Publix , and, of course. Target. When a customer places an order, employees at partner stores don’t have to do anything. Instead, one of Shipt’s personal shoppers goes to the store, plucks the products from shelves, and delivers them to the customer’s home. Shipt shop­pers wear green T-shirts with the company logo. But similar to Uber and Lyft. they are Independent contractors. They drive their own vehicles and work when they want to. A Shipt personal shopper makes between $16 and $22 an hour. Shipt finished its most recent fiscal year with approx imately 100,000 shoppers delivering approximately $1 billion worth of groceries and other merchandise. Ex perts have predicted a reliable model for home grocery delivery to the masses for the past 20 years. Until now, how­ever, efforts have moved slowly, leaving behind many casualties Today, same-day grocery delivery is a rapidly growing sector with many large retail competitors entering the fray. Fueled by the explosion in mobile devices and consumer expectations for instant everything, same-day grocery delivery is more in demand than ever. “One-stop shopping was convenient in the 1990s says one retail analyst. “But for today’s families you have to be able to do instant food delivery as well.” According to a recent report, online grocery shopping in the United States could expand fivefold, eclipsing $100 billion in annual sales by 2025. Why Partner When You Can Buy? Although the Shipt acquisition may seem sudden for Target was actually a long time coming. Target has always striven to stand out from the rest of the discount retail world by OFFering a more high-end customer experience. With Amazon and Walmart fast establishing their same-day grocery delivery capabilities, Target knew it had to make a move or risk falling further behind. But why buy Shipt instead of simply partnering with it, For starters, the acquisition sends a strong signal to competitors and customers that Target is serious about the grocery business and about delivering its goods better and faster than large competitors. Purchasing rather than partnering with Shipt also gives Target more control. The acquisition lets the company take Full Case #3 Target Questions for Discussion: • 12 – 16: As completely as possible, diagram the value delivery network for Target’s grocery business, from raw materials to finished consumer goods. • 12 – 17: Is Target a producer, a customer, or an intermediary? How about Shipt? Explain. • 12 – 18: Discuss Target’s channel management procedures. • 12 – 19: Regarding the same-day delivery venture, why are Target’s partnerships important? • 12-20: Will Target’s acquisition of Shipt result in growing revenues in the coming years? Explain. Shipt, which Target bought in late 2017 for $550 million. During April, May and June 2020, Shipt’s order volume nearly tripled from the same time last year, Caruso said. Target, which recently reported a record-breaking sales quarter, saw revenue on orders fulfilled by Shipt grow more than 350% year-over-year in the second quarter. Target Deal Days 2020: runs on the same days as Amazon Prime Day: Huge savings Oct. 13 to 14 Target has announced plans to ensure a strong performance during the important holiday season, hiring about 130,000 seasonal staff Additional resources to ensure customers feel safe and comfortable Some consumers are naturally concerned about COVID-19 safety when shopping in-store. “Consumers are actively looking for use of masks and physical barriers when deciding where to shop in-store,” according to an Aug. 28 survey of U.S. consumer sentiment from McKinsey. Same-day fulfillment and inventory planning One-stop shopping appeals to consumers and could boost average basket size The Amazon & Walmart Factor? Walmart • Partnering with Instacart to offer consumers same-day delivery, reported on Aug. 11. Walmart+ • Launched on Sept. 15, 2020 • $98 per year • Free same day delivery Drone Delivery •Walmart has struck deals with three drone operators to test how the technology could be used for on-demand deliveries and to help it better compete with Amazon. •It is testing different drone uses, from dropping off groceries to delivering Covid-19 at-home test kits. •Amazon recently got approval from the Federal Aviation Administration to operate its own drone fleet. •United Parcel Service and Alphabet-owned Wing also have FAA approval for drone delivery. UBER https://www.youtube.com/watch?v=0yMv16p8FO8 Amazon https://www.youtube.com/watch?v=beZ8iKGuDeo https://www.youtube.com/watch?v=pzi7vqGos6U UPS https://www.youtube.com/watch?v=b-8nyG7IwOk Google https://www.youtube.com/watch?v=prhDrfUgpB0 With Tata set to take on Ambani, this is how a highstakes, all-out retail war is about to play out Tata Group is talking to Walmart for a $25 billion investment in a “super-app,” a multipurpose platform combining fashion, lifestyle and electronics retail, food and grocery, insurance and financial services, as well as SoLoMo: Its Origin and Development: Being able to explore what’s on offer in a couple of clicks, consumers became more fastidious, expecting brands to adjust to their needs and preferences in an instant. All this gave rise to a particular approach to marketing, which is SoLoMo: •Social: Regardless of the business type, it should be available via the internet and social networks such as Facebook, Instagram, or Twitter. •Local: A consumer’s location is essential for businesses, especially in retail, to make products and marketing messages more personalized and engaging. •Mobile: Smartphones, tablets and laptops permeate our daily routine, so the importance of making a business available online shouldn’t be underestimated. Product discovery wars 2020: Google vs. Amazon Google renamed its Shopping Express product discovery tool to Google Shopping, and improved capabilities to make it easier for consumers to find and buy products online. Currently, more consumers use Amazon instead of Google to research products because Amazon has made it so easy for them to shop and buy and thus Google’s market share of search ad revenue is expected to drop from 73% this year to 70% by 2021, while Amazon’s market share will grow from 12.9% to 15.9% in the same period, according to an eMarketer forecast. Google’s defensive move to improve its product discovery platform benefits both online retailers and traditional retailers with online stores. By removing the friction from online browsing to purchase, shoppers can now more easily buy products directly through Google’s shopping platform (like they would on Amazon or another retailer’s website). Second, traditional stores with a solid online presence can get their products in front of more shoppers. advantage of the Shipt technology platform across its entire net­ wark of stores, letting it to provide faster and more convenient same-day delivery on a wide variety of goods. Now, just over a ear after the acquisition, Target customers can take delivery via Shipt of groceries, home goods, and electronics, among other things. “By the end of 2019, we’ll offer same-day delivery on all major product categories at Target,” claims John Mulligan, Target’s chief operating officer. Prior to the acquisition, Target was already partnering with Shipt rival lnstacart. But the strong compatibility between Target and Shipt was apparent to both companies. “What sets us apart, and really one of the big reasons we were drawn to Target. is the value we place on delivering quality, personalized experiences to our customers,” notes Shipt’s founder. “Our localized network of … shoppers goes above and beyond to make sure our customers are well served.” In the Race or Out in Front? The Shipt purchase was primarily prompted by developments at Target’s main competitors. At the time of the Shipt purchase, Walmart offered same-day grocery delivery in only six U.S. mar­’ Purchase answer to see full attachment Explanation & Answer: 5 Questions Tags: Walmart and Amazon Targets grocery business distribution channels User generated content is uploaded by users for the purposes of learning and should be used following Studypool’s honor code & terms of service.

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Company Cc1se Target A Serious Contender in the Same-Day Delivery Business
Once upon a time, there were two major forces dominating the
discount retail market: Walmart and Target. The two retailers
of­fered similar merchandise assortments, and their stores
were close to one another-often facing off from opposite
sides of major boulevards. The two were constantly
compared- the press rarely covered one without mentioning the
other.
Walmart was far and away the market leader. And although
Target was a distant runner-up, its stylish “cheap chic”
position­ing and “Expect More. Pay Less.” mantra made it a
formidable challenger to Walmart’s always-lowest-price positioning.
In fact. for years Target grew at a faster rate than Walmart, nibbling
away at the giant’s market share and posing a genuine threat.
But what a difference a decade makes. Since the
Great Recession of 2008, Walmart’s annual revenues have
increased by more than S140 billion while Target’s have barely
moved. Not only has Walmart improved its game, but increased
competition from Amazon, Costco, Kohl’s, and dollar stores have
flattened Target’s growth. Still, Target hasn’t given up. It has
doubled down on improving its customer experience while at
the same time cutting corporate costs. So far, however, its efforts
haven’t seemed to make much difference.
All that may soon change. Target has made a major invest­
ment that it hopes will help it to regain its edge in the retail world and
restore its growth. For a cool $550 million in cash, Target
recently acquired Shipt. the exploding startup with a
thriving same-day delivery network across the United States.
With on­line grocery sales exploding, the future of retail favors
companies that can deliver goods fast and cheap. With the
Shipt acquisition, Target is sending a message-it’s serious
about establishing a competitive advantage in home delivery.
Target plans n9tonly to increase sales of its current inventory
but also to become a major player in an area of retail where it has
languished-groceries.
A New Way to Deliver Groceries
Founded in 2014 by a 32-year-old high school dropout, Shipt
quickly established itself as a force in the home delivery busi­
ness. After a few failed models, Shipt focused on
groceries. Members get unlimited same-day grocery delivery on
orders of $35 or more for just £99 a year. The Shipt app and
website offer users a seamless experience for ordering and
receiving grocer­ies and general merchandise.
But Shipt is not a grocer. It’s a home delivery service.
Rather than invest in its own inventory, Shipt built its
business by partnering with grocery chains such as Kroger,
Publix , and, of course. Target. When a customer places an
order, employees at partner stores don’t have to do anything.
Instead, one of Shipt’s personal shoppers goes to the store,
plucks the products from shelves, and delivers them to the
customer’s home. Shipt shop­pers wear green T-shirts with
the company logo. But similar to Uber and Lyft. they are
Independent contractors. They drive their own vehicles and
work when they want to. A Shipt personal shopper
makes between $16 and $22 an hour. Shipt finished its
most recent fiscal year with approx imately 100,000
shoppers delivering approximately $1 billion worth of
groceries and other merchandise.
Ex perts have predicted a reliable model for home
grocery delivery to the masses for the past 20 years. Until
now, how­ever, efforts have moved slowly, leaving behind
many casualties Today, same-day grocery delivery is a
rapidly growing sector with many large retail competitors
entering the fray. Fueled by the explosion in mobile devices
and consumer expectations for instant everything, same-day
grocery delivery is more in demand than ever. “One-stop
shopping was convenient in the 1990s says one retail
analyst. “But for today’s families you have to be able to do
instant food delivery as well.” According to a recent report,
online grocery shopping in the United States could expand
fivefold, eclipsing $100 billion in annual sales by 2025.
Why Partner When You Can Buy?
Although the Shipt acquisition may seem sudden for Target
was actually a long time coming. Target has always striven
to stand out from the rest of the discount retail world by
OFFering a more high-end customer experience. With
Amazon and Walmart fast establishing their same-day
grocery delivery capabilities, Target knew it had to make a
move or risk falling further behind. But why buy Shipt instead
of simply partnering with it, For starters, the acquisition
sends a strong signal to competitors and customers that
Target is serious about the grocery business and about
delivering its goods better and faster than large competitors.
Purchasing rather than partnering with Shipt also
gives Target more control. The acquisition lets the
company take Full
Case #3
Target
Questions for Discussion:
• 12 – 16:
As completely as possible, diagram the value
delivery network for Target’s grocery business,
from raw materials to finished consumer goods.
• 12 – 17:
Is Target a producer, a customer, or an
intermediary? How about Shipt? Explain.
• 12 – 18:
Discuss Target’s channel management
procedures.
• 12 – 19:
Regarding the same-day delivery venture, why
are Target’s partnerships important?
• 12-20:
Will Target’s acquisition of Shipt result in
growing revenues in the coming years? Explain.
Shipt, which Target bought in late 2017 for $550
million. During April, May and June 2020, Shipt’s
order volume nearly tripled from the same time
last year, Caruso said.
Target, which recently reported a record-breaking
sales quarter, saw revenue on orders fulfilled by
Shipt grow more than 350% year-over-year in the
second quarter.
Target Deal Days 2020: runs on the same days as Amazon
Prime Day: Huge savings Oct. 13 to 14
Target has announced plans to ensure a strong performance during
the important holiday season, hiring about 130,000 seasonal staff
Additional resources to ensure customers feel safe and comfortable
Some consumers are naturally concerned about COVID-19 safety
when shopping in-store. “Consumers are actively looking for use of
masks and physical barriers when deciding where to shop in-store,”
according to an Aug. 28 survey of U.S. consumer sentiment from
McKinsey.
Same-day fulfillment and inventory planning
One-stop shopping appeals to consumers and could boost average
basket size
The Amazon
& Walmart
Factor?
Walmart
• Partnering with Instacart to offer consumers
same-day delivery, reported on Aug. 11.
Walmart+
• Launched on Sept. 15, 2020
• $98 per year
• Free same day delivery
Drone Delivery
•Walmart has struck deals with three drone operators to test how
the technology could be used for on-demand deliveries and to help it
better compete with Amazon.
•It is testing different drone uses, from dropping off groceries to
delivering Covid-19 at-home test kits.
•Amazon recently got approval from the Federal Aviation
Administration to operate its own drone fleet.
•United Parcel Service and Alphabet-owned Wing also have FAA
approval for drone delivery.
UBER

Amazon

UPS

Google

With Tata set to take on
Ambani, this is how a highstakes, all-out retail war is
about to play out
Tata Group is talking to Walmart
for a $25 billion investment in a
“super-app,” a multipurpose
platform combining fashion,
lifestyle and electronics retail,
food and grocery, insurance and
financial services, as well as
SoLoMo: Its Origin and Development: Being able to explore what’s
on offer in a couple of clicks, consumers became more fastidious,
expecting brands to adjust to their needs and preferences in an
instant. All this gave rise to a particular approach to marketing,
which is SoLoMo:
•Social: Regardless of the business type, it should be available via
the internet and social networks such as Facebook, Instagram, or
Twitter.
•Local: A consumer’s location is essential for businesses, especially
in retail, to make products and marketing messages more
personalized and engaging.
•Mobile: Smartphones, tablets and laptops permeate our daily
routine, so the importance of making a business available online
shouldn’t be underestimated.
Product discovery wars 2020: Google vs. Amazon
Google renamed its Shopping Express product discovery tool to Google
Shopping, and improved capabilities to make it easier for consumers to
find and buy products online.
Currently, more consumers use Amazon instead of Google to research
products because Amazon has made it so easy for them to shop and buy
and thus Google’s market share of search ad revenue is expected to drop
from 73% this year to 70% by 2021, while Amazon’s market share will
grow from 12.9% to 15.9% in the same period, according to an eMarketer
forecast.
Google’s defensive move to improve its product discovery platform
benefits both online retailers and traditional retailers with online stores. By
removing the friction from online browsing to purchase, shoppers can now
more easily buy products directly through Google’s shopping platform (like
they would on Amazon or another retailer’s website).
Second, traditional stores with a solid online presence can get their
products in front of more shoppers.
advantage of the Shipt technology platform across its entire net­
wark of stores, letting it to provide faster and more convenient
same-day delivery on a wide variety of goods. Now, just over a
ear after the acquisition, Target customers can take delivery via
Shipt of groceries, home goods, and electronics, among
other things. “By the end of 2019, we’ll offer same-day delivery
on all major product categories at Target,” claims John
Mulligan, Target’s chief operating officer.
Prior to the acquisition, Target was already partnering
with Shipt rival lnstacart. But the strong compatibility between
Target and Shipt was apparent to both companies. “What
sets us apart, and really one of the big reasons we were
drawn to Target. is the value we place on delivering quality,
personalized experiences to our customers,” notes Shipt’s
founder. “Our localized network of … shoppers goes above and
beyond to make sure our customers are well served.”
In the Race or Out in Front?
The Shipt purchase was primarily prompted by
developments at Target’s main competitors. At the time of
the Shipt purchase, Walmart offered same-day grocery delivery
in only six U.S. mar­’
Purchase answer to see full
attachment

Explanation & Answer:
5 Questions

Tags:
Walmart and Amazon

Targets grocery business

distribution channels

User generated content is uploaded by users for the purposes of learning and should be used following Studypool’s honor code & terms of service.