Foreign Expansion into the Canadian Market

As American retailers continue their push into the Canadian market, one has to wonder about the overall effect that these new chains have on our economy. Some would be excited about the prospects of new chains and new products, while others would be cautious of the ever growing amount of foreign companies setting up shop in our country.

Perhaps the most prominent store to open in Canada in the recent future, is Target. The arrival of Target poses a substantial threat to existing, Canadian companies, The Bay in particular. As well, another established store in Canada (although American based), Sears, has a lot to lose with the entry of Target.

From the perspective of the foreign businesses, it seems Canada is a market ripe for expansion. With almost identical culture and customs, American corporations face little risk in expanding into the market. However, the opportunities are quite large. With fairly concentrated populations around cities like Vancouver, Toronto, Montreal and Ottawa, companies can focus their development in specific areas and still capture a substantial amount of customers.

As well, the division of the market between rivals (the rivals being basically limited to Sears, The Bay, Canadian Tire, and Walmart) splits the market, allowing Target greater ability to capture customers.

The Canadian market seems perfect for American corporations, and as a result, we will likely see increased expansion into our market.

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