As Uncle Bob’s business seeks to expand into Canada, it must adopt strategies that lead to effective entry and establishment. Effective establishment of distribution networks in Canada should be measured against achievement of a certain volume of business and a specific geographical coverage in Canada, all within a specific period of time.
It is important for the company to consider competition in the foreign market. The questions asked in this regard should be; how many other companies are doing the same business in the Canada? Is there a niche in the target market? (Ando & Kimura, 2003).
The business also needs to consider the compatibility of its products with the Canadian market. The market dynamics in the Canada are bound to affect the business and it is crucial for Uncle Bob’s management to establish consumer preferences of Canadians (Ando & Kimura, 2003). The big question should be; will Canadians accept Uncle Bob’s Breakfast Box combination?
The management should also address cost of production and distribution; what will be the cost of acquiring the materials to prepare the same package? What will be the profit margin? What will be the cost of labor in the new market? By comprehensively answering these questions, Uncle Bob’s management will be in a position to tell whether it is viable to start distribution in Canada (Ando & Kimura, 2003).
It is crucial for Uncle Bob to familiarize himself with the regulations and the legal structure of conducting business in a foreign market (Ando & Kimura, 2003). Questions in this case probe for; what period of time does it take to register a business? What are the charges of documentation in Canada? What will be the cost of running the business factoring in the legal influences? In all, the management of Uncle Bob should conduct a thorough research into the Canadian pastries market before launching any production and distribution towards the same.
Reference
Ando, M., & Kimura, F. (2003). The formation of international production and distribution networks in East Asia. Cambridge, Mass: National Bureau of Economic Research.
