1. Target in Hong Kong By Bill Fairbanks Vitaliy Konev Kenneth Nick Paul Slifer

2. Hong Kong Overview

3. Company Overview Target is a chain of discount department stores Founded in Minneapolis, MN in 1902 Has 1,494 stores in all US states except for Alaska, Hawaii, and Vermont Fifth-largest retailer in the United States Ranked 29th on the 2006 Fortune 500

5. Entering Foreign Market US market saturation Hong Kong has good economical and political conditions Success of Wal-Mart in China Absence of Wal-Mart in Hong Kong Starting point for expansion to the rest of China

6. Local Competition Local Retail Stores: –PARKnSHOP (#1 in South China) –Wellcome (#2 in South China) –c!ty'super (high-end supermarket) –CRC (China Resources Company) Possible future competitor: Wal-Mart

7. Entry Modes + Advantages +- Disadvantages - Open new stores Full control over stores and patent Keep all profits High costs High risk Unfamiliar market Unknown to Customers Acquisition Experience from US acquisitions Quick to execute Full control over stores and patent Experience and knowledge of local management Low risk Possibility to overpay for acquired firm Potential cultural problems and unexpected costs Joint Venture Local partner’s knowledge Shared costs and risks Customers’ and government’s trust Shared patents and exclusive rights w/ partner Shared control and profits Possible management conflicts for power

8. Summary

9. Questions?