International Diversification

September 5th, 2011 § 0 comments

Popular and Successful American companies realize there is a place in the Canadian market for them. Not long ago Hollister Co., cousin to upscale and trendy Abercrombie and Fitch, entered the Canadian market by opening stores in British Columbia. This gave people living in places like Vancouver better access to this brand of clothing. No longer do Vancouverites have to travel to Seattle so that they can purchase the Hollister brand. Hollister realized that there was a demand for their business and took the opportunity to expand. Other companies like Sephora and Forever 21 realized a strong demand for their stores in British Columbia and have done very well by opening stores across the border. Best Buy, affiliated to Canada’s Future Shop, has opened stores and is giving Canadian consumers a second big electronics store to shop. Other big US stores to recently cross the border include Whole Foods and Costco. Target, a slightly upscale Walmart, is planning on making homes for a number of stores across Canada within the next three to four years, so the battle between American companies could payoff for Canadian consumers. This exhibits the strategy that numerous companies are executing in order to try and gain broader consumers, which is a strategy that has been mentioned in class.

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