After reading the article “Canadian manufacturer refuses to move off-shore” and Clarisse Ong’s blog post staying-in-canada-refusing-to-outsource, I agree with her response on the fact that refusing to outsource is beneficial to Canada. It saves job opportunities for the Canadian people, and it also contributes to the overall economic development. Moreover, as the article mentioned, Cancoil is competitive in the industry because of its innovation. This implies that Cancoil is aiming to achieve the differentiation strategy.

Picture Source- google.com

On the other hand, according to the article, the founder of Cancoil Thermal Corp, Chander Datta, stated that he is not tempted to move his business offshore to countries like China or India like a lot of the other Canadian manufacturers do. He believes that outsourcing to the third world is a short-lived phenomenon. He pointed out that the high cost of transportation together with the increasing low wages in the third world outweigh the benefits derived from the lower cost of production.

It applies to what we’ve learn about the generic strategy. A company should focus on only one strategy in the long run. If it attempts to achieve both differentiation and cost leadership strategy, it would project a confusing image for the company; and therefore achieve no advantage in the end.