this post was submitted on 04 Aug 2023
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Target's failed expansion into Canada. It's taught as a case study on what not to do in business schools now.
Wendy's tried to get into the Netherlands, but couldn't, because there was already a snackbar (think small fastfood place but greasier) that was registered under the name "Wendy's" at the chamber of commerce. This spawned a lawsuit. You had Wendy's, a local snackbar who claimed rights to the name because they were already established, and Wendy's, a franchise coming from America. They claimed right to the name because they were a franchise, and not just a single fastfood joint.
To solve this issue, the local snackbar opened up a second location, making local Wendy's a franchise, and winning them the lawsuit
It was so weird when Target opened in my city. Everyone was pumped for the great deals Americans are always on about. The grand opening comes, and it was basically just a super expensive Walmart with half the products out of stock. Then they closed without notice like a month later. Employees came in the morning to open up and there were chains on the doors.