Research A Company That Has Successfully Made The Transition

Research A Company That Has Successfully Made The Transition From A Br

Analyze a company that has successfully transitioned from a brick-and-mortar business to an e-business. Examples include Blockbuster, Target, Wal-Mart, Barnes and Noble, Circuit City, CompUSA, Best Buy, Pizza Hut, Domino's, and others. Conduct a thorough analysis and write a three or more page White Paper-style case study addressing the following key areas:

Company Overview: Provide a brief one-paragraph overview of the company.

Changes in Business Processes: Describe the business process changes implemented during the transition to e-business.

Survivability Without E-Business: Assess whether the company would survive without its e-business component and justify your answer.

Survivability Without Brick-and-Mortar: Assess whether the company could survive without its physical stores and justify your reasoning.

Advantages and Drawbacks of IT Solution: Discuss the unique advantages gained from the IT solution and note any noticeable drawbacks or challenges faced.

Motivation and Timing of Transition: Explain what motivated the company to shift to e-business and whether they were early or late adopters of online commerce.

Competitor Analysis: Identify the company's major competitors and analyze whether they face the same competitors in both online and brick-and-mortar markets.

Paper For Above instruction

In this case study, we will examine the strategic transformation of Target Corporation as a representative example of a company that successfully transitioned from a traditional brick-and-mortar retailer to a prominent e-business. Target, founded in 1902 and headquartered in Minneapolis, Minnesota, has evolved from a local department store to a national retail giant that harnesses online commerce to complement its physical stores (Target Annual Report, 2022). The company's adaptation to digital technology exemplifies how traditional retail businesses can thrive in the digital age by integrating e-commerce into their overall business strategy.

Target restructured several core business processes during its transition to e-business. Notably, the company developed a robust online shopping platform that offers customers the ability to browse products, place orders, and choose between in-store pickup, curbside delivery, or home delivery options (Target.com, 2023). The supply chain management processes were also optimized—with integrated inventory systems linking physical stores and warehouses—to ensure real-time stock updates across channels. Customer service operations incorporated digital channels, including chat support and mobile order tracking, enhancing overall customer experience. Furthermore, Target's logistics and last-mile delivery processes were revamped to meet the demands of online order fulfillment efficiently.

Assessing Target's survivability without its e-business component suggests that the company would face significant challenges. The pandemic accelerated online shopping's popularity, with sales on Target's digital platforms growing substantially—by over 20% in 2022 alone (Nilsen, 2023). Without its e-commerce operations, Target would lose a substantial portion of its revenue, particularly from younger, digitally native consumers who prioritize convenience and online shopping options. Moreover, competitors like Amazon, Walmart, and other online-first retailers have gained market share by offering seamless digital experiences, highlighting the importance of Target’s online platform in maintaining competitiveness (Gao & Liu, 2021).

Conversely, Target's physical stores remain vital to its overall business model. The company's brick-and-mortar stores provide experiential shopping and immediate product access, which online channels cannot fully replicate. The wide geographic reach and deep community integration secured through physical stores support local brand loyalty, making it unlikely that Target could sustain its market position solely through e-commerce. Retail research indicates that while online sales are pivotal, the store network still accounts for the majority of sales, especially for categories like household essentials, seasonal items, and groceries (Berman & Evans, 2020).

The implementation of digital technology has conferred several distinct advantages to Target. The company enhanced customer data collection enabling personalized marketing strategies and inventory management. Its digital platforms facilitated targeted promotions and improved customer engagement. The integrated online-offline inventory system minimized stockouts and reduced costs associated with overstocking. However, challenges such as cybersecurity risks, initial high investment costs in IT infrastructure, and logistical complexities presented drawbacks. Managing a unified multichannel experience requires substantial operational coordination, which can strain resources, especially during scaling phases (Kumar et al., 2022).

The motivation behind Target’s shift to e-business was driven by increasing consumer demand for convenience, competitive pressures, and technological opportunities. The company recognized early that digital retailing would be central to future growth and adopted an innovative approach, investing heavily in online infrastructure before many competitors. While Target was not an early pioneer like Amazon, it has been considered a late adopter that strategically accelerated its digital initiatives in response to market forces and consumer preferences (Johnson & Smith, 2020). Its proactive adaptation, however, enabled it to catch up and even outpace some traditional rivals in certain digital segments.

Target's major competitors include Walmart, Amazon, Costco, and CVS Pharmacy. While Walmart operates both physical stores and online platforms, its e-commerce approach differs slightly, with a greater emphasis on low-cost online offerings (Walmart Inc., 2023). Amazon, primarily an online marketplace, is a direct competitor in the e-commerce sphere but lacks physical retail presence in the same scale, posing unique competitive challenges. Retailers like Walgreens or CVS compete more directly offline but are also expanding their digital offerings, creating overlapping markets for health and household products. Overall, Target faces a complex competitive landscape, with some competitors sharing both physical and digital presence, and others competing mainly online.

References

• Berman, B., & Evans, J. R. (2020). Retail Management: A Strategic Approach (13th ed.). Pearson.
• Gao, H., & Liu, Z. (2021). Digital Transformation in Retail: The Case of Target. Journal of Business Research, 134, 425-436.
• Johnson, M., & Smith, T. (2020). The Evolution of Retailers in E-Commerce Era. International Journal of Retail & Distribution Management, 48(7), 733-749.
• Kumar, V., Petersen, A., & Leone, R. P. (2022). Customer Centricity and Digital Transformation. Journal of Business & Industrial Marketing, 37(3), 612-630.
• Nilsen, A. (2023). Target's Digital Growth Surges During Pandemic. Retail Dive. https://www.retaildive.com/news/target-digital-sales-growth/634512/
• Target Corporation. (2022). Annual Report 2022. https://investors.target.com/static-files/annual-reports/2022
• Target.com. (2023). Shop Target online. https://www.target.com
• Walmart Inc. (2023). Walmart Annual Report 2023. https://s25015.pcdn.co/wp-content/uploads/2023/03/Walmart_2023_Annual_Report.pdf