Genki Sushi in Canada: SWOT Analysis and Market Objectives

Genki Sushi in Canada: A Business Proposal
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Genki Sushi (GS) in Canada: A Business Proposal – SWOT Analysis and Objectives
Section Introduction
While Genki Restaurants are primarily based in Asian states, they have increasingly made headways in Australia and the United States due to the popularity of sushi delicacy. The internationalization of Sushi has been part of GS's long-term mission, and the currently imminent entry into the Canadian market only serves to fulfill part of this mission. Entry into a new market requires an understanding of the market and how external and internal forces shape them. This is based on the fact that markets differ in terms of these forces or the extent to which they affect customer needs, customer purchasing power, and the willingness of customers to try new or foreign products and services. In other words, an approach that works in one market may not be successful in another market because of these differences. Thus, part A of the current section is a market investigation, based on SWOT analysis, that will inform the entry of GS in the Canadian Market. Outcomes in the SWOT analysis will also shape the organization's international and market objectives discussed in section B.
PART A: Market SWOT Analysis
Market Strengths
The Canadian market has several strengths that can help GS thrive in its sushi internalization mission and expansion of its market bases. These strengths include the popularity of the sushi delicacy, diversity, and consumer preference for foreign products and cuisine.
Popularity of Sushi Delicacy
Sushi is one of the delicacies that have surpassed Chinese food in popularity due to its rich and unique taste of seasoned rice and fish. In addition, an open kitchen makes it popular for people who prefer dining at the restaurant since they can judge the freshness and quality of the food. Further, Sushi is not only popular but has also been assimilated or combined with other Canadian delicacies. Peyton (2017) wrote that while Sushi translates to seasoned rice, the term is a blanket for an assemblage of raw fish, rice, and discretionary seaweed in Western cultures. To the extent of this definition even further, Canadians have invented new sushi-based delicacies like California Rolls, Sushi Poutine, and Sushi Pizza. Further, Sushi is a popular food of choice, evidenced by the success of online and brick-and-mortar restaurants like Gozen sushi, Japonais Bistro, and Sushi-Ya Japan, among others. In regional markets like Toronto and Montreal (Omori, 2017), Sushi is an already established dish with a guaranteed steady market.
Market Diversity and Consumer Willingness to Try New Products
Another key strength of the Canadian market is its diversity. Canada is among the most culturally diverse Western society. According to Gören (2013), Canada is the only Western society ranked in the top 20 of the world's most culturally diverse nations. Present ethnicities include Canadian, European, African, Chinese, and First Nations. Under first nations, there are over 600 recognized bands or governments. Looking at socioeconomic and political factors, women are doing even better than men on several fronts (Turcotte, 2015). This is due to deliberate and directed efforts to empower women in the past four decades. Further, Canada is was among the first nations in the world to embrace, promote, and implement legislation protecting the rights of the LGBTQ community.
This national diversity is also reflected in the Canadian market. There are a variety of tastes, both foreign and local, and in the variety of food delicacies that Canadians can choose from. According to Jesse Vergen, chef and owner of Saint John Ale House, "Canadian Cuisine is the sum of many diverse cultures, products, and traditions in the country" (Vergen, 2017). Canadian food, argues some authors, is entirely international. As discussed by Marcone, Madan, & Grodzinski (2020), one can find any kind of cuisine across the country. Therefore, this diversity is a critical strength that GS can utilize to add variety to the welcoming market.
Market Weaknesses
To some extent, Canada's diversity may also be a market weakness. While Canadians are open to diversity and quality foreign products and services, they are also increasingly being coerced to prefer local products. For instance, in the 2019 national budget, an investment of over $25 million across five years was committed for the AAFC to develop a national approach: The Buy Canadian Campaign (Connolly, 2020). As part of the new Food Policy, the campaign is intended to better connect Canadians with and instill pride in Canada's agriculture, food system, and seafood products. If the drive is successful, it provides a market weakness in which GS may not thrive.
Further, the variety of Sushi is relatively tiny. Genki Sushi, for example, has over 156 restaurants in Japan and 200 more overseas. Sushi is usually top on the list of foods people want to eat when they walk into these restaurants. However, as Yajima (2020) documented, there are only four types of Sushi in its original form: salmon, fried shrimp, California, and ell (unagi) rolls. This small variety of Sushi is a massive disadvantage for the younger generation that has embraced diversity and has an affinity for novelty things. Further, this small variety of Sushi must wrestle with the already existing sushi delicacies blended with other cultures.
Market Opportunities
Despite this weakness, the Canadian market also has a variety of opportunities for GS to exploit. The market's diversity and positive reception of Sushi are already foundational opportunities. However, another possibility is that most Canadians would like to try new products. In a recent consumer survey report by BrandSpark, seven out of ten Canadians would test new products. They would spend extra to get more. A further 65% to rely on recommendations of other consumers to make food purchase decisions (Gov, 2021). GS stands to benefit from this opportunity as a foreign entity, especially through an aligned marketing strategy.
Additionally, key areas for focus for Canadian consumers include health, premiumization, sustainability, effectiveness, and convenience. All these areas align with GS's current business strategy. In terms of comfort, for instance, Takashi Hoshito, the CEO of Genki Sushi, emphasizes that GS is committed to improving quality in everything it does. These include the speed at which food is delivered to customers (Hoshito, n.d.). In terms of health, 67% of Canadians reported making health improvements, including changes in food choices (Gov, 2021). Issues like obesity have become a crisis increasing public demand for healthy food options provided with convenience and affordable prices (de Gara & Sheppard, 2020). Nutritionists (Tey et al., 2018) have shown that Sushi is often regarded as a weight-loss-friendly meal, mainly when it is not made with high-fat sauces. At GS, part of the mission is to promote health and wellbeing by providing healthy food choices (Hoshito, n.d.). In terms of the environment, Canada has an array of environmental legislations and the backing of environmentally conscious consumers (Nielsen, 2011). This is also an opportunity because GS's environmental policy is consistent with the Canadian consumer mindset.
Further, while the assimilation of Sushi with other cultures is a healthy sign of cross-cultural interaction, it is also an opportunity for GS. Here, many consumers are used to blended varieties of Sushi a...