Canadian Expansion Research have recently been contacted by the Minister of Trade and Commerce for Canada, who contacted me for the purpose of encouraging Burger Delight to expand into the Canadian market. I have researched the Canadian market and have found expansion into the area to be a promising possibility. The major benefits are the similarity between America and Canada which assure product acceptance, ease of entry and profitable sales.

I have provided an overview of the research below, describing the research findings and providing justification for continued consideration of the possibility of expansion.

Canadian Culture

The major factor that supports the idea of expansion into Canada is the similarity between Canadian culture and American culture. The similarities extend from language, to belief systems to lifestyle.

These similarities mean that product and promotional programs developed for the American market would be equally effective in the Canadian market, allowing for the marketing campaign expenditure for the American marketing programs also being utilized for the Canadian market, effectively spreading the cost of product and promotional development.

The similarities would also allow for easier entry into the market, as the retail chain could develop mirroring the American chain. There would be no time or expense for researching to adapt the product to a foreign market. The similarity in culture also almost guarantees product acceptance.

Canadian Economy

Canada can be described...

In its market-oriented economic system, pattern of production, and high living standards" (Emulate Me).
Canada has been experiencing 3% growth since 1993 and has a per capita GDP of around $24,000 with a real per capita GDP growth rate of 4.3% (Emulate Me).

Canada has natural resources, a skilled labor force and modern capital plants meaning that its economic conditions are good and are also solid.

This makes Canada not only a good market to enter at the current time, but also a safe market to enter with little risk of an economic downturn in the future.

In an environment of major change, entering the Canadian market provides a good opportunity for Burger Delight to spread its risks outside of America, while still operating in safe and stable markets.

Relationship Between America and Canada

Canada and America share a close business relationship with over $1 billion worth of trade being conducted per day between America and Canada (U.S. Department of State). The business environment is one of Canadian acceptance of American products, with American exports to Canada being larger than exports to all members of the European Union combined (U.S. Department of State).

The business environment was also much improved with the passing of the Free Trade Agreement and then the North American Free Trade Agreement. The agreement reduces trade barriers and provides guidelines for trade. Since its passing, trade increased by 40% and…