International Operations
To: Ms. Jodeen A. Kozlak, Director of International Operations, Target
From: Robert Aguero, Strategy Communication Intern.
Date: February 6, 2014
Subject: The Key to Success
Dear Ms. Kozlak,
As Director of International Operations, you have contributed tremendously to the success and evolution of Target Corp. As Target Corp. continues to find new and innovated ways to improve operations in the U.S., Target still lacks international presence that could be essential to the success of Target Corp. In order for Target to compete with other competitors in retail industry, Target Corp. must expand into China. This emerging market, rich with success, will lead to improved brand recognition, established international presence, and most importantly increased company profits.
China is booming. The population of China is 1.3 billion. With an average GDP of about 10% per year China recently surpassed Japan as the worlds second largest economy. With a growing rate of 8% per year, China now plays such a significant and influential role in the global economy. Yet, the already successful emerging market of China still has room to grow.
With more than 25 of the worlds largest retailers conducting business in China, its no secret that the retail sector is emerging rapidly. According to Thomas White International retail sales increased 16.3% in 2012, while the GDP flourished at 9.7%. With Chinas retail sales accounting for approximately $2.1 trillion in 2012, we are expected to see retail sales double in the next three years.
Chinas economy offers limitless market potential. With a high demand for high quality consumer product, Target Corp. makes for an easy entry into the Chinas market. Target Corp. primary target market consist