Canada was chosen as a state for international market expansion. When domestic organizations expand globally, their intention is to reach new markets and expand their product’s relevance. The other benefits of global expansion include increases in revenue streams, acquiring new customers, obtaining access to talent pools, and competitive advantage in the addressable market. As far as Canada is concerned, the evident advantage of global expansion includes a beneficial environment for trade and international partnerships, as Canada is a tariff-free zone for manufacturers regardless of the location within the state (Kreklewetz & Raphael, 2018). When it comes to the expansion’s impact on the business, the product introduction in the new markets increases the company’s recognition outside the domestic audience. The business’s integration into the global trade community may provide the company with the advantage of finding cost-efficient suppliers and a secure customer base throughout the world, increasing the product’s resilience to local market trends and influences (Osano, 2019). Hence, the strategic planning and the supply-chain management of the company gain more security due to the variety of supplier options and market entry possibilities.
The societal impact of businesses’ global expansion cannot be overlooked. The existing environment is designed to encourage small and medium domestic enterprises to create internationalized products that can be easily tailored according to the target customer’s needs. In the case of baseball bats, the product itself is highly dependent on the target culture, as baseball is a product with less relevance in the European and Asian markets. For this reason, the choice in favor of international expansion to Canada is based on the societal needs and perception of the product. Globalization in the market, by all means, promotes the rapid development of modern transportation and infrastructure. For example, the Asian market segment has evolved significantly in terms of supply chain and transportation over the past years in order to secure international cooperation with western countries.
The target culture of global expansion is another significant aspect to consider. In order for the product to be successful, it is of paramount importance to study the customers’ values, purchase behavior, and relevant marketing strategies. In the case of the US domestic business expanding to Canada, the customer portfolio, along with the customer needs, is relatively easy to identify. Hence, it can be concluded that expansion abroad is a promising strategic move for the company to avoid further sales flattening.
References
Kreklewetz, R., & Raphael, S. (2018). Geographically flexible foreign trade zones in Canada. Web.
Osano, H. M. (2019). Global expansion of SMEs: Role of global market strategy for Kenyan SMEs. Journal of Innovation and Entrepreneurship, 8(1), 1-31. Web.