Corporate Globalization: Bring American "Dutchbros Coffee" to Canada

Corporate Globalization Assessment
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Corporate Globalization Assessment
Executive Summary
Dutch Bros Coffee decision to start operations in Canada is a good move. Given its strong presence in the US, the business can leverage its brand loyalty in the US to expand to Canada succesfully. The Canadian market has a huge potential for coffee products. This paper provides an analysis for Dutch Bros Coffee to enter the Canadian market. The analysis covers various aspects which are instrumental for entry. While Canada is a viable market, the business needs to invest more into establishing relations with clients in Canada. This will establish its reputation among clients and increase its market share in the new market
Introduction
It is important for businesses to continually think about how to expand to new markets. In a globalized world, businesses need to identify ways of capturing overseas markets to increase their market share. Expanding the coffee brand Dutch Bros Coffee to a new market in Canada is critical in allowing the business to tap into the growing coffee market in Canada. However, businesses need to undertake a comprehensive analysis of both external and internal factors that can determine their success. A comprehensive evaluation of Dutch Bros Coffee will allow the management to establish how the business is likely to perform in the new market and help the management in making the most appropriate decisions.
Macro Analysis – PESTLE and Implications
The PESTLE analysis will allow the management to understand the external factors that will affect Dutch Bros Coffee in Canada.
Political
Canada’s political environment is relatively stable, which offers a good environment for new businesses. Political stability will be a key factor in ensuring that Dutch Bros Coffee can comply with the required regulations. The business will find it easier to meet the required laws, licenses and regulations. For the business to have a smooth entry into the Canadian market, it needs to understand all the legal requirements.
Economic
Canada's market is welcoming to foreign brands. The economy is diversified making it possible for any business to establish its operations and succeed. The coffee industry in Canada has experienced growth over the years. This provides Dutch Bros Coffee with an opportunity to take advantage of the growing economy. However, factors like inflation can adversely affect the profitability of the business. Inflation is likely to increase the cost of production, hence decreasing the businesses’ revenue.
Sociocultural
Canada is a multicultural society because of its willingness to accommodate people from diverse cultures. As a result, it has different consumer preferences. Dutch Bros Coffee needs to identify the various consumer tastes and preferences of the Canadian market. It needs to offer differentiated products to ensure all customers can identify with them.
Technological
Canada is technologically advanced with consumers embracing digital solutions in purchasing products. For instance, clients pored products from apps and websites, and have them delivered at their door steps. Dutch Bros Coffee needs to invest in the ...