Target and E-Business

Target and E-Business

ACC/340

January 27, 2014

University of Phoenix

Abstract

Electronic business (E-business) is the process of conducting business on the internet (Nelson, 2005). The business aspect of the definition relates to all forms of business including sales to customers, servicing those customers, and collaborating with other businesses. E-business provides opportunities for businesses to reach a customer base that extends worldwide, taking retailers from brick and mortar to international sales. This paper will evaluate the effect e-business has had on Target over the years and the advantages, limitations, and risks that are involved in the endeavor.

Target and E-Business

Target Corporation began as a dry goods company named Dayton Company established by the founder George Draper Dayton in 1902. Mr. Dayton developed a brick and mortar business that flourished during the early 1900's (Target, 2014). The company's first expansion occurred in 1954 with the opening of a Dayton's in Rochester Minnesota. Following this first expansion, Dayton's continued to open more locations in the surrounding suburbs of Rochester. In 1962, the company changed the store name to Target and was a "new idea in discount stores" (Target, 2014). By differentiating itself as a discount store chain, the company opens its first store outside of Minnesota, in the Denver metropolitan area. By 1967 corporation has expanded to a national scale and continued the success of affordable, quality merchandise, community giving, and good corporate governance. By 1998, Target stores totaled 851 units with annual sales of $23.0 billion and more than nine million registered Target Guest Card users (Target, 2014). In 1999, Target launched its e-commerce website that offered merchandise that was not available in-store. By 2003, Target had teamed with Amazon.com to continue the strong increase in on-line sales.

Target continues to grow internationally through the building of new brick-and-mortar locations as well as increased interest in on-line sales. At fiscal year-end 2012, Target had 1,778 U.S. stores with 361,000 employees. Total revenue for the same period was $73,301,000, which was an overall sales increase of 5.1% and 2.7% of the increase occurred in stores.

Advantages

In 2011, Target Corp. re-launched its e-commerce website with the integration of social media and e-mail capabilities. In 2012, Target invested heavily in the digital services provided to customers. Target launched the Target app and QR code programs in 2012 and continues to enhance mobile technology and in-store digital campaigns. The corporation earned the Mobile Marketers 2012 "Mobile Commerce Program of the Year" which emphasizes the corporation's commitment to deliver personalized shopping for all customers using all selling channels. Target also launched its "Give With Friends" program that uses a new social buying app allowing Facebook users, to gather