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Introduction
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Entering the global market is essential for growth and development
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The external marketing environment has opportunities and threats (Lamb et al., 2021)
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The environmental analysis is necessary prior to entering the country’s market
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Perigord Bakery from the United States is planning to enter the Canadian market
Cultural Factors
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The majority of the Canadians are English-speaking (Commisceo Global Consulting, 2020)
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However, French population should be considered as well
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Similarities with the American culture
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Food is an important part of a Canadian culture
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Bread and sweet are nutritiously and culturally important
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Communication is characterized by tact and diplomacy, straightforwardness, and openness (Commisceo Global Consulting, 2020)
Demographic Factors
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Area – 9 093 507 km2
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Population – 37 943 231
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Density – 4,2/km2
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Life expectancy at birth – 83,6
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The biggest population group – age 15-64 (64.7%) (U.S. Department of Commerce, n.d.).
Economic Factors
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GDP – $1,742,790,000,000
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GDP per capita – $45,900
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GDP growth rate – 1.66%
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Unemployment rate – 5.67% (U.S. Central Intelligence Agency, n.d.)
Political/Legal Factors
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Ease of Doing Business – 23
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Starting a Business – 3
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Registering Property – 36 (World Bank Group, 2020)
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Political and Regulatory Environment – 15 (value 5,4) (World Economic Forum, 2021)
Technological Factors
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The Networked Readiness Index – 11 (value 5,6) (World Economic Forum, 2021)
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Income Level – HI-OECD
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Group – ADV (Advanced Economies)
Geographical Factors
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Location – Northern North America
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East – the North Atlantic Ocean
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West – the North Pacific Ocean
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North – the Arctic Ocean
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South – the United States
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Climate – temperate in south, subarctic and arctic in north (U.S. Central Intelligence Agency, n.d.)
Conclusion
The environmental analysis is essential for expansion:
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It will be highly beneficial for Perigord Bakery to enter the Canadian market
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Cultural, demographic, geographical, and networked readiness factors mostly contribute to this decision
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Franchising will be the most appropriate format
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Franchisees are familiar with cultural and regulatory peculiarities of regions
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Potential risks include a lack of control, reputational risks, and legal system challenges
References
Commisceo Global Consulting (2020). Country guides. Web.
Lamb, C. W., Hair, J. F., & McDaniel, C. (2021). MKTG13: Principles of marketing. Cengage.
U.S. Central Intelligence Agency (n.d.). The world factbook. Web.
U.S. Central Intelligence Agency. (n.d.). The world factbook. Web.
U.S. Department of Commerce (n.d.). International programs. U.S. Bureau of the Census. Web.
World Bank Group (2020). Doing business. Web.
World Economic Forum. (2021). The global information technology report 2016. Web.
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