Market strategy analysis help: The Hard Reality of Global Expansion
Introduction
One of the suggested strategies for her o cycles to enter Canada particularly British Columbia is
through Greenfield strategy. This article helps hero cycles to understand the strategy better by
considering the four dimensions of distance. These dimensions will help Hero Cycles to compare
its strategy leading to the advantages and disadvantages of entering the given market.
Discussion
This article broadly discusses the four dimensions of distance and whether it is safe for a
company to enter a market. The four dimensions are mainly Cultural Distance, Administrative or
Political Distance, Geographic Distance and Economic distance.
Cultural distance
According to Pankaj Ghemawat the countries cultural attributes determine how the people
interact with one another. A great importance is given to factors such as religious belief, social
norms, race and languages as they can create a lot of difference. According to Hofstede’s ranking
there is a vast difference between India and Canada. India believes in collectivism while Canada
believes in individualism. Even the structure of the organisations are very different from one
another, India is centralised while Canada is decentralised showing the difference between the
power distance index. Cultural distance turns out to be a disadvantage for hero cycles to enter the
market all by itself as entering a market which is so different from its own culture can create
serious problems for the company.
- Administrative and Political Distance
This dimension focuses on the associations and barrier of a country. Canada and India have not
yet signed a 100% free trade which is not allowing Canada to enter India in full strength on the
other hand British Columbia a province of Canada welcomes companies to do trade with them
and at the same time supports the trade (Westhead, 2010). On further analysis it is observed that
companies often restrict themselves from entering countries that have a reputation for corruption
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