Company Case: Target: A Serious Contender in the Same-Day Delivery Business (Value 40 points total):

Synopsis

There is a frenzy to get out in front of home grocery delivery. Amazon and Walmart are getting all the attention. But pretty much every grocery chain large and small is fighting for a piece. Target knew it had to get serious and purchased Shipt, a startup company that specialized in grocery delivery by using existing grocery chains' inventory. Given that home grocery delivery has been threatening to turn the grocery business upside down for the past 2-3 decades, this story is especially interesting. For groceries and home deliver, its time may have finally come.

Discussion Questions

As completely as possible, diagram the value delivery network for Target's grocery business, from raw materials to finished consumer goods. (Value 20 points):

Rubric:I'm expecting a diagram that shows both upstream and downstream members of the value chain and flow of major categories of products (e.g. dairy, meat, produce, dry goods, etc.). Multiple depictions are possible, so don't research to try to prove exact flows and partners (unless you wish). Keep it general.Give a supporting paragraph to explain the delivery network you have drawn.

Is Target a producer, a consumer, or an intermediary? How about Shipt? (Value 10 points):

Rubric: this is a simple short answer answering question and explaining reasoning, for both Target and Shipt.

Will Target's acquisition of Shipt result in growing revenues in the coming years? Explain. (Value 10 points):

Rubric: expecting a short answer paragraph with your opinion backed up by some marketing thought.