Challenge-Response

From the analysis above, one of the significant challenges that Target is facing is language and cultural barriers. The swot analysis reveals that Spanish residents might not particularly favor Target’s items, such as specific toys or clothing items. Besides, sociocultural adaptability has been considered essential for Target since it is crucial to focus specifically on products such as foods and clothing trends relevant to the Spanish culture. In that perspective, the ideal strategy for Target to meet this challenge is to adapt to the Spanish environment and deploy the go-to-market strategy.

As Target evolves in the new market, it will need to find an intersection where its products attract local customers while adapting to the Spanish culture. The go-to-market (GTM) strategy is ideal for companies launching new products or those entering a new market like Target. The strategy primarily signals the trustworthiness and usability of a business, attracting first-time customers (Kuester et al., 2018). It is a convincing moment that the company must appeal to the local customers to test their products, and if they do, the company gains a competitive advantage. The GTM may involve product launching, rebranding, change in the sales channel, and reduction of prices. The focus of GTM is to achieve a competitive advantage by offering a value proposition that competitors do not offer in the new environment.

The GTM strategy has several cons and pros. The advantages include that it keeps managers focused on the realities of the new market and avoids bringing the strategies of the old market that might not favor the new market. Also, the business realizes a unique selling proposition which moves it to a competitive edge. Thirdly, the business can find the demands of the new market straightforwardly and reveal the real competitors on the market. Lastly, the GTM is part of the whole process of creating brand awareness. However, the GTM has cons such as removing the company from the market synch, disproportionate value proposition delivery, and taking significant time to find the ideal advertising techniques.

Nevertheless, the recommendation is that Target should use marketing tools that target the appropriate potential customers and create a robust public relation. This might necessitate hiring local experts who are aware of where the needs of local customers meet with advertising strategies. This should also include cultural education for incoming employees to align with the needs of the local culture and product definitions in the local language (Novais & João, 2016). Also, Target should segment the potential customer to become more customer-focused and reduce disproportionate delivery of value proposition. Local employees will also help identify local trends, competition landscape, and the sociocultural behaviors in marketing to remain in sync with the market. Lastly, Target should increase employee engagement to attract and local retail talents who are valuable in adapting to the local culture.

Notably, marketing is a battle for competitive advantage, and the strong one retains it. Target competitors will respond to the strategy and dedicate themselves to retaining their competitive positions. Some practical responses will be hiring more experts, which will reduce the variety of local talents available to Target and increase the marketing vigor of its competitors. Competitors might also innovate their processes to align with the demands of the local culture, which they already understand better than Target. Besides, they have already identified the customer segments in the country. This reveals that while Target is suitably positioned to enter the Spanish market, managers should be aware of impending challenges and be proactive in adapting and grabbing a competitive position.

References

Kuester, S., Konya-Baumbach, E., & Schuhmacher, M. (2018). Get the show on the road: Go-to-market strategies for e-innovations of start-ups. Journal Of Business Research, 83, 65-81. https://doi.org/10.1016/j.jbusres.2017.09.037

Novais, A., & João, B. (2016). Cultural Influences on Entry Mode Choice in International Business: An Assessment and Review. Revista De Gestão E Projetos, 07(01), 01-14. https://doi.org/10.5585/gep.v7i1.399