Canada Goose Case Study

CASE STUDY: CANADA GOOSE: THE SOUTH KOREAN OPPORTUNITY
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Contents
 TOC \o "1-3" \h \z \u  HYPERLINK \l "_Toc320042330"
Answer to question 1  PAGEREF _Toc320042330 \h
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Answer to question 2  PAGEREF _Toc320042331 \h
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Answer to question 3  PAGEREF _Toc320042332 \h
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Answer to question 4  PAGEREF _Toc320042333 \h
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Answer to question 5  PAGEREF _Toc320042334 \h
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Answer to question 6  PAGEREF _Toc320042335 \h
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References  PAGEREF _Toc320042336 \h
15

Answer to question 1
Six important factors about South Korean culture
South Korean culture, including its business traditions, has greatly been influenced by China (Fairbank, Reischauer and Craig, 1978). Historically, the South Korea adopted Confucianism more strictly than China itself (Buswell, 1992). Because of this reason, South Korean people are generally very polite and do not ask personal questions regarding age, religion, education, salary or family life. In South Korean business tradition, the most important thing is the status and it is significantly important to estimate relative status or age of counterparts. Chocolate, as a gift, is well appreciated in South Korea. Facial expressions and hand moves during a conversation should be controlled and must not offend the other party. Also, it is unwelcome to be too much vigorous.
Four important factors about ethics in South Korea
The main ethics in South Korean business market is modesty. By nature, South Korean people are very humble and expect the same from others. In business, this is even more important. During a business conversation, it is not welcome to say a compliment unless it is something positive. Also, it is very important to express negative information in a positive way. Sounding negative is often considered as a rude attitude. In case of a request for a favor, it is not right to decline the request; and if it has to be rejected, the tone must be very apologetic.
Answer to question 2
Five advantages to enter South Korean market
About eighty eight percent of total population of the country lives in urban areas for the lack of land. The rate of urbanization has been increased in recent years (Hoo-nam, 2009), making it a perfect market with a very wide number of customers. So for reaching to any level of customers, Canada Goose Inc. will not have to make a nationwide marketing campaign.
South Korea is one of the fastest growing economies in the world with increasing income rate for its people. With current market status, it is shows a great potential for luxury and brand products. So this can be a great opportunity for Canada Goose Inc
In recent years, the South Korean culture is greatly influenced by western culture and their people are adopting social trends in many aspects in their life. This can be a big advantage for the Canada Goose Inc. to join the market.
For last decade, the South Korean government is encouraging foreign companies to invest in the country and reduced its regulations regarding direct investment. The credit risk in the country has been decreased by greater degree in recent years, making it an excellent choice for the Canada Goose Inc
The market of outwear for cold weather in South Korea is still open to any western company. There is almost no competition and that makes a perfect timing for the Canada Goose Inc
Disadvantages to enter South Korean market
Overall disadvantages or risks to introduce a new foreign investment in South Korea are very low. One of the major risks to be considered in foreign investment is political stability. This is more critical for South Korea because of North Korea. However, the South Korean government has successfully implemented democracy in the country which reduces the risk in greater degree.
There is also a possibility of macroeconomic risk because of the fiscal position and inflationary environment of the country.
The government influence and control over the regulatory and legal environment can also be a disadvantage for any making an investment in South Korea by the Canada Goose Inc. Because of higher bureaucracy and lack of transparency, this is probably the riskiest factor.
Foreign exchange rate and payment risk is another disadvantage to consider. South Korea has already faced a major financial crisis in 1997. Although the country has improved the debt maturity profile since then, it should still be considered as a disadvantage.
Compared to western countries, the tradition and culture in South Korea is totally different. As this is the first attempt for the Canada Goose Inc. to enter into the Asian market, the situation would be very difficult at the beginning. The company needs to set up a whole new formation regarding business traditions, ethics and marketing strategies.
Answer to question 3
The four segments of a SWOT analysis are: Strengths, Opportunities, Weaknesses and Threats. With some contradictions (Menon et al. 1999; Hill and Westbrook, 1997), this is the best way to determine the current state of Canada Goose Inc. before going into the South Korean market.
Strengths: Canada Goose Inc. is an international brand. The company has successfully created a huge market in Canada, America and Europe. The company also has globally distributed marketing zones beside these three, from where the company earns about ten percent of their total revenue.
The company was established in 1957 and since then, it has successfully established effective marketing systems for its global market. The company marketing strategies include regional factors as well as its experiences from running the business over a very long time.
Because of its authenticity and highest standard of quality, the company has a huge reputation among the customers. The company is known for not compromising its quality or genuineness event with economic crisis and that makes it one of the most popular brands in its genus.
In terms of standard, the Canada Goose Inc. does not have many competitors in both local and international market.
Effective screening process to select partner in foreign country is another great strength of the company.
Opportunities: Products from Canada Goose Inc. have a growing demand. Not only because of its quality but also for not having many brands as good as this one is the main reason for that.
For the same reason, the company has an almost open market in the areas where it has not been introduced yet. So it can initiate open market restructure in those countries.
Most of the potential marketing zones and possible customers of the company are known for rich lifestyle and higher income.
Apart from their fashion potentiality, the products of the Canada Goose Inc. are essential for daily use and everybody needs them.
The brand is well established in its defined market niche.
Weakness: Targeting an unknown and new market is a weakness for Canada Goose Inc. as it wants to go for South Korean market as well as in all other possible markets around the world.
The products from the company are often considered as high prices. The company maintains very high standard and quality, and for that, the products are expensive.
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