Canadian Tire

Topics: Canadian Tire, United States, Canada Pages: 2 (710 words) Published: January 24, 2013
Many critical factors caused the company’s failure in the United States. In the early 1980s, the United States faced a severe recession due to the establishment of a contractionary monetary policy which reflected negatively on the American economy. Other factors to consider is the fact that Canadian Tire poorly chose to open up its stores in underdeveloped areas. Furthermore, one of the disadvantages in the beginning of a global expansion includes the loss of control. As a result of these factors, the American stores didn’t experience much growth and stores had to continuously slash prices on already low priced products. With low rates of growth and increasing competition from retail companies such as Walmart and Target which had a large group of loyal customers, Canadian Tire stood no chance in the American market.

Many critical factors caused the company’s failure in the United States. In the early 1980s, the United States faced a severe recession due to the establishment of a contractionary monetary policy which reflected negatively on the American economy. Other factors to consider is the fact that Canadian Tire poorly chose to open up its stores in underdeveloped areas. Furthermore, one of the disadvantages in the beginning of a global expansion includes the loss of control. As a result of these factors, the American stores didn’t experience much growth and stores had to continuously slash prices on already low priced products. With low rates of growth and increasing competition from retail companies such as Walmart and Target which had a large group of loyal customers, Canadian Tire stood no chance in the American market.

Originally known as an automobile service garage and auto parts depot in Toronto, Canadian Tire now provides products and services for everyday life to Canadians nation-wide. With nearly 487 retail outlets employing over 68,000 people, the company states that, “85% of the Canadians live within a 15-minute drive of their local...
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