TOPIC: The Export of Canada Goose Inc. Jackets to South Korea
Table of Contents
Executive Summary 1
Chapter 1: Research Methodology and Data Collection 4
Chapter 2: Barriers to Entry 5
Chapter 3: Proposed Distribution Channel 9
Chapter 4: E-Commerce 12
The case study involved choosing a product line to be imported from or exported to Canada. An existing export was chosen in the form of Canada Goose jackets. These jackets are to be sold from Canada to South Korea and the chosen distribution channel was to be direct exporting via a distribution agreement.
Canada Goose jackets would invariably have to face a number of barriers to entry ranging from consumer and economic barriers through to political and legal barriers. Korea is a growing economy with a high level of technological advancement but the culture varies significantly from that of Canada’s so consumer issues shall have to be considered. As with any country, Korea faces political barriers that shall have be contemplated as well as unexpected business infrastructure issues and the union problems that Korea faces.
Based on the analysis of these various barriers a distribution agreement was chosen as the best possible initial market entry strategy and justified by analyzing the market and product requirement of Canada Goose jackets. Furthermore, the suitability of e-commerce is discussed and is a must in the Korean business environment given their hi-tech population and substantial access to internet.
Canada Goose Inc. was founded in 1957 with the idea of producing extreme weather outerwear for the Canadian marketplace. They also produce rainwear, sleeping bags and down-filled accessories. Additionally, they have export experience throughout the United States, United Kingdom, Italy, Greenland, Japan and Algeria. Canada Goose Inc. just recently entered into the Korean market. As recently as February 2012, they announced Connex Solution Inc. as their exclusive distributor in Korea, with the official launch of Canada Goose products taking place in September of 2012.
Chapter 1 will deal with the research methodology as well as present a few recommendations for future research. Korea has a population of just over 48 million and is among the world’s 20 largest economies. They have displayed incredible growth and global assimilation to become a high-tech industrialized economy. The Korean market does, however, pose a number of barriers to entry and it would be interesting to take a closer look at them, especially with Canada Goose Inc. having entered the market so recently. These barriers range from Environmental to Customer and economic barriers and will all be looked at in more detail in Chapter 2.
As stated earlier, Canada Goose Inc. chose to use an exclusive distributor, Connex Solutions Inc., as their market entry channel. With their entrance to the Korean market being so recent, no success of the chosen distribution channel could be recorded yet. It would hence be intriguing to propose a distribution channel based on the barriers to...