Global Business: Analyzing Challenges that Canadian Firms Encounter

Background on Global Business

Across the globe, Canadian products show strong demand in several growing markets; however, it is never easy to reach those markets because of free trade agreements, transportation and telecommunications advancements, and global supply chains (Rodrik, 2018). Various businesses started to compete at a worldwide scale and enter the foreign market compared to their competitors. With increasing globalization, both countries and companies are progressing well but must stay aware of the rapidly changing environment into new markets. This requires organizations to do studies, surveys and get familiar with the culture among countries (Dominguez & Mayrhofer, 2017). In such a case, Canadian companies experience different opportunities and challenges that are required to start any business.

Access to new markets and customers can benefit any business, mainly for niche products and small companies when it comes to opportunities. The population of Canada is 3.5 million people, representing over 0.46 percent of the total population around the world (Statcan, 2017). When entering international markets, there will be a substantial increase in profits for Canadian businesses; also, more advantages include decreased production costs and economies of scale to operate. There is an excess production capacity of the companies, which shows 500 units less expensive to produce than 400 units, as assumed. This relates to the per-unit cost, decreasing as the business expands its sales into new foreign markets overall (Zaridis & Mousiolis, 2014). It is the opportunity to sell excess product capacity without being forced to give discounts or dispose of them among businesses in an overseas market. Furthermore, exporting causes faster growth, a product’s life cycle extension, and higher profits.

Another advantage is to reduce marketing costs to enter foreign markets; on the other hand, selling global products by businesses involves cutting costs through standardizing certain marketing activities. For instance, it consists of an organization's ability to make the product indistinguishable for markets overall, along with simply translating the packaging. Moreover, companies reduce marketing costs by keeping advertisements visual and dubbing them into local languages (Kotabe & Kothari, 2016). To go global, companies can also yield valuable in the exchange of information and ideas about marketing techniques, new technology and market competition. However, there are challenges as well other than a global organization to have an impressive accomplishment. The potential cultural challenges Canadian businesses might face entering foreign markets include differences concerning education, religion, customs, customer preferences, norms, languages, and other cultural factors (Martin, 2014). Other challenges include political instability, terrorist insurrection, and military takeover, which are risks and challenges globally.

Opportunities for Canadian Firms in Global Markets

There are Canadian companies that look towards entering or expanding international like Tim Hortons, Loblaw Companies Limited, Blackberry, and more, required to build a loyal local customer base, global expansion, competition, technology, cost, and such standard driving factors focuses on businesses to grow (Dignan, 2015). Blackberry is a mobile communications company providing a broad range of smartphones, Internet of Things, software, and business solutions to deal across the globe. The company's headquarters are in Ontario, Waterloo, Canada and was famous for its Research in Motion (RIM), but later developed as BlackBerry Limited (Friend, 2013). This company operates in over 50 locations worldwide, spanning Europe, North America, Asia, Africa, South America, Australia, and Canada for smartphones, popular overall.  

Furthermore, Blackberry worked on an internationalization strategy of partnership among companies and other iconic figures to improve its service delivery. Also, such partnerships involved Co-CEO Jim Balsillie, enabling to manufacture of its device. The company also partnered with Amazon to develop over 24,000 android applications for its Appstore (Reuters, 2014). Its other partnership with Foxconn resulted in several devices, but Z3 of BlackBerry was a milestone, mainly designed for Indonesia compared to other rapidly growing companies. The company enjoys the advantages of growing its mobile market with a positive brand reputation, research and development, diverse product mix, innovative ideas, and better management. This enables the brand to remain competitive opposing brands like Apple and Samsung. It led BlackBerry to plan a growth strategy to develop the CORE program and new relevant technologies overall (Arellano, 2013). The company is also changing its design with the operating unit to adopt organizational structure, including enterprise services, messaging, devices, and BTS business.

Being a Canadian Entrepreneur or the business operator of Tomato-based Sauces- a business venture of Canada, it is crucial to fulfilling the roles and responsibility to expand the business products and services or operations in a few countries to make it successful and famous to increase the productivity level and growth of the business in an effective way (Secondi et al., 2019). For me, it's a chance to highlight my business in front of the large population and gathering my thoughts gives me energy, which I use to think creatively and come up with unique ideas to help the company grow into other nations like the United States, United Kingdom, Japan, and China. Because the Tomato sauce is now only available in Canada, more research is needed before being marketed elsewhere. I'll do some study on the geography, population, and other characteristics of the host nation.

This data may give you an idea of who your consumers are, where they are located, and what they want and need. When it comes to exporting tomato-based sauces, there are political, economic, and social risks to consider. Assessing and evaluating these possible hazards is critical for worldwide success as a business owner or representative. Various cultures and subcultures will be investigated to determine what works best in terms of communication and advertising. Analyzing the relationship between government and business is critical for knowing how the host country's society is structured (Guiné et al., 2020).