Target a Serious Contender in the Same-Day Delivery Business

Target a Serious Contender in the Same-Day Delivery Business
The case study on “Target A Serious Contender in the Same-Day Delivery Business” highlights Target integrating Shipt to support the same-day-delivery service. Target’s main competitor Wal-Mart had already rolled out same day delivery and had become more competitive. Shipt is a same-day shopping service company that partnered with Target, but Target’s acquisition of Shipt changed the store experience. To evaluate the store experience, there is a focus on Target’s value delivery network. Target and Shipt’s position in the distribution channel, Target’s channel management procedures and the benefits of patterning with Shipt to ensure same-day delivery venture.
Target’s value delivery network
1 Raw Materials
Producers and Farmers
2 Wholesalers and Distributors
3 Target’s Main Store
Discount retailing
Packaging
Branding
4 Shipt
Home delivery service
Organizing delivery channels
5 Finished goods
Final consumers
Target is a producer, a customer, or an intermediary. The retailer produces various products and they have their own brands besides stocking brands from other producers. They are an intermediary that buys from producers and wholesalers, while linking with the distributors and customers buy from the retailer. Target is a customer as the retailer partnered and then acquired about Shipt to facilitate the same day home delivery service and Shipt had already partnered with various grocery chains in the U.S. including Target before the acquisition. Shipt is an intermediary that links the retailers such as Target with the final consumers. Shipt offers delivery service where products are taken from Target and deli...