Pizza Pizza's Expansion to Mexico

Business and Marketing
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November 25, 2023
Contents 

Expanding to Mexico  3

Risks of the New Market  6

Challenges Associated with Supply Chain 9

References 11
Expanding to Mexico
The company can successfully expand to Mexico based on its approach to introducing the brand. The global economy has significantly changed over the years, allowing for better organization and governance (Gereffi, 2005). Based on this growth, Pizza Pizza will successfully integrate its products into the Mexican market. Proper organization and governance will allow the company to align its operations with the national policies of Mexico (Gereffi, 2005). Another aspect that determines business growth is understanding the cultural environment (Hill et al., 2018). Canada and Mexico have different cultures. The success the company has experienced in Canada is based on its understanding of the country’s culture. The company has succeeded in selling pizza flavors that align with the preferences of customers in Canada. The goal of the company, as it targets Mexico, is to try out new flavors (Coulton, 2023). Focusing on these new flavors indicates that the company is focused on aligning its new restaurants with the unique culture of Mexico. Food is prepared differently regionally based on the cultural upbringing of individuals. Restaurants that successfully operate in various parts of the world have ensured that the foods they sell are based on the taste favored by customers.
Based on the company’s focus on trying out new spices for its Mexican market, it will create a working relationship with locals. A working relationship will allow the company to generate and sustain a consistent sale of its pizzas. Apetrei et al. (2015) state that culture shapes international business and is central to business practices. International business is unique and requires companies to implement appropriate strategies to attain the intended targets. International business's aspects of politics, economy, and legal system differ from domestic ones (Hill et al., 2018). Generally, the Pizza Pizza Company will expand to the new environment based on its understanding of cultural differences between Canada and Mexico.
Second, the company will expand to the Mexican market based on its understanding of the country's political economy. The political economies of Canada and Mexico are different. Due to political economies, countries have unique economic systems (Hill et al., 2018). For example, some economic systems focus on individuals, while others focus on collective goals. Pizza Pizza has successfully understood the Canadian economic system, allowing it to set up 700 restaurants. The company understands the importance of economic systems when conducting international business. Conversely, the company understands the political issues of safety (Coulton, 2018). Organized crime is a serious problem in Mexico, and since the company is aware of this problem, appropriate measures will be implemented to allow it to set up its restaurants successfully. Third, the...