last updated 2010 March 25
International Business textbooks (which are mostly based on a U.S. model
of doing business internationally) have a big section on how to pick the
country into which your business will expand.
Such a section might be relevant if the economy of you country includes huge consumer products companies like Walmart, Coke, McDonald's, etc. - BUT, Canada does not have such companies.
Except for a small number of students that might get involved in mining exploration or work with Magna or Nortel, most Canadian students of international business will not see themselves sitting around a conference table trying to decide between the merits of setting up business in Argentina vs. Brazil.
Therefore a long conversation about Country Evaluation and Selection might be irrelevant.
Or is it?
What Canadian companies do you know that operate internationally, and might be expanding to other countries.
Here is a small list - can
you add any companies that you know from reading the newspapers, or watching
Blockbuster Video represents the fact that an increasing amount of international business development is not in traditional consumer product manufacturing but rather in consumer and industrial services
From Blockbuster's website
"BLOCKBUSTER operates more than 2,000 international video stores in 25 foreign countries throughout Europe, Asia, the Pacific Rim, and North and South America. The first international BLOCKBUSTER store opened in London in 1989 [textbook said 1990].
The country outside the U.S. with the most BLOCKBUSTER stores is the United Kingdom. It has more than 700 BLOCKBUSTER stores."
Blockbuster's first expansion outside the U.S. was to the U.K., not Canada - any guesses why?
2004 - now 2,600 stores outside the United States
student Farhan K. in MGTC44 in March 2010 emailed to say
"I just wanted to share an article I read on CNN.com about Blockbuster. The heading caught my attention: Blockbuster is 'bleeding to death'. Apparently the movie rental company is $1 billion dollars in debt and may have to file for bankruptcy soon unless they can do something about it. This news was a little alarming to me, because even though I don't use it, I have seen it's stores all over Canada."
CNN also mentioned "questionable business decisions -- like canceling all late fees -- ate into the company's profits"
o Where to Market?
o Where to Produce?
o What to Market?
||The answer takes us back
to first year marketing course
Answer depends on whether your firm has a
o Product Orientation
o Sales Orientation
o Marketing Orientation
Flexibility means the ability
of your company to adapt to changing conditions so that you can continue
to produce a product/service at a competitive price. In the world of 2005
flexibility is of critical importance since there have been many
severe changes in the world since the 1990's. A key part of being flexible
is understanding that country conditions change and listed below are some
names of regions in which severe changes have taken place in the past 5
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