Well, that was quick. Less than two years after it launched its Canadian expansion, Target Corp. is closing all of its stores across the country. The American retail giant is expected to post US$5.4 billion in pretax losses on discontinued operations for the fourth quarter of 2014. Target has only itself to blame for this massive failure. The company never got things right in the critical early stages of its Canadian adventure, disappointing customers again and again.
In an increasingly complex and competitive world, business executives are focused on improving their understanding of their customers. Organizations today are fortunate to have a wealth of customer information at their fingertips. Hours are spent conducting surveys and focus groups, and in analyzing transactional, demographic and other data in an attempt to optimize the way they segment their customers and drive them to behavior. In our work, we have observed some commonly held, but often incorrect, views about customers. We call them the customer fallacies.
Coming up with a winning bid for a complex asset is a thorny problem, and every deal is unique. At first glance, the recent $5.2 billion purchase by Rogers Sportsnet of the National Hockey League’s TV and multimedia broadcast rights seemed exorbitant. We put the deal through a simple framework to determine if the price was too high.