International expansion is one of the great opportunities for businesses seeking to grow their profitability and their reputation, and Canada is a young market with abundant appeal.
For UK and European organisations, Canada's cultural parallels and mutual language are just the beginning when it comes to reasons for exploring this vibrant territory, but how do you know it's the right move for you, and how can you maximise your chances of success? At gigCMO, we provide our marketing leadership to help businesses develop go-to-market strategies that will help them thrive in new markets.
Here, let's talk about what businesses need to consider when it comes to expanding into new markets, particularly in Canada.
Why a Company Need Marketing Leadership to Expand Internationally?
Think of it as akin to preparing for a major athletic competition. While it's possible to train on your own using online resources, achieving high performance requires investing in a comprehensive support system.
Most organisations and marketing teams are already operating at full capacity and often lack the bandwidth to take on additional challenges. They may also be missing critical capabilities and insights needed to gain a competitive edge.
At gigCMO, our Fractional CMO Service addresses deficiencies, tops up existing capabilities, and ensures integration with key partners that will help your expansion journey be seamless. Our playbook-driven approach ensures that your business not only navigates challenges efficiently but also sustains growth in your current market. Our Fractional CMO Service is an extension of your team, enhancing your marketing capabilities and operations for long-term success.
What is the First Step in the Decision for a Business to Expand Globally?
Amongst the experts in international business expansion is transformational leader and strategist Adam Joyce, President of Rainmaker Global Market Access. Rainmaker helps companies internationalise. They recently worked with a company whose target for the first year was $1.1 million in profit in a new municipality. Instead, the company achieved $4.3 million, with the process from hiring to the end of the first year taking 18 months. In contrast, the company had previously entered another market independently, taking three years, three times the investment, and achieving less success. It's a remarkably simple concept - if you have a company that wants to grow beyond its domestic area, they facilitate that.
We asked Adam Joyce what are the first things business leaders need to know when expanding in Canada, and his response:
"The first thing you need to know is your business. Do you understand your corporate readiness? Do you have the right capacity and capabilities? Have you understood your deficiencies related to coming into the Canadian market or as a Canadian company going into another country? Do you know what market you want to go into?"
"People will often say they want to go to America, Europe or Canada, but those are huge markets! What's your starting point? Is it Toronto? Calgary? What made you think that was the best starting point?"
"There are a lot of questions to grapple with when it comes to any kind of growth, so the foundation is, do you know your goal is beyond your ambitions? Once you know that, you can build on it with market analysis and so forth."
The Dynamics of Regional and Global Expansion
Understanding the regional dynamics and specific needs across various Canadian cities is crucial for any business aiming for successful expansion. Toronto, Saskatoon, Calgary, Edmonton, and Vancouver are among the rapidly growing cities in Canada, each with unique industry focuses and government incentives designed to attract specific sectors.
For example:
- Edmonton: Known for its logistics, warehousing, and rail industries, Edmonton offers targeted incentives to businesses in these sectors.
- Calgary: Focused on engineering and aerospace, Calgary provides a supportive environment for companies in these fields.
- Lethbridge: Primarily centred on agriculture, yet it may present significant opportunities for transportation businesses due to being an underserved market.
However, it's essential to note that regional focus doesn't limit opportunities. A transportation business, for example, may find viable prospects in Lethbridge despite its agricultural focus, benefiting from being a pioneer in an underserved market.
"There are certain industries that each area is developing, and you could go onto any one of the provincial websites and look that up. They're pulling for everything from sustainable energy to engineers, transportation and agriculture. Canada is still a young country; it's growing, and there's lots of opportunity, land, and resources, as well as a multicultural fabric that's constantly inviting more people. It may not be as dense a market as the USA, and it isn't as capitalistic, but that's not a bad thing," said Adam Joyce in our interview.
How to Determine the Right Market?
Selecting the right target markets and the order in which to approach them is crucial. This decision should be based on thorough research and analysis. Key steps include:
- Market Segmentation: Understanding the values and needs of potential target audiences and the total addressable market (TAM) in your new territory.
- SWOT Analysis: Conduct a comprehensive analysis of strengths, weaknesses, opportunities, and threats in potential markets.
- PESTEL Analysis: Evaluate the political, economic, sociological, technological, legal, and environmental conditions to determine the relevance of your business proposition in the chosen market.
Evaluating Your Business Readiness
Assessing how your business aligns with regional opportunities involves evaluating your corporate readiness. Consider the following:
- Strategic Fit: Does the region's industry focus align with your business's strengths and strategic goals?
- Government Incentives: Are there specific incentives available that could benefit your expansion?
- Market Opportunity: Is there an underserved market or gap that your business can fill effectively?
- Local Partnerships: Can you establish beneficial partnerships with local businesses and organisations to enhance your market entry?
Take our Market Readiness Assessment to determine how well your business is positioned to capitalise on new market opportunities. This assessment has already helped many businesses successfully navigate new markets and achieve sustainable growth.
What are the Challenges of Moving into the Canadian Market for UK/European Businesses?
The Canadian market prides itself on political stability, but it comes with a bureaucratic cost. To get projects going, the amount of bureaucracy and inclusiveness that's needed can be challenging. It's all an attempt to be helpful, providing sustainability and preservation, but it's part of the bureaucratic challenge to get established. That's why you need to understand your market competition.
How can UK Businesses Thrive in Canada?
Canada excels in sectors like clean energy, artificial intelligence, healthcare, and aerospace. UK businesses can collaborate with Canadian organisations on innovative projects. Innovate UK provides up to £5 million for joint ventures to develop products, processes, or services for overseas markets.
Additionally, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) further strengthens the trading relationship between Canada and the UK by removing over 99% of tariffs on goods and establishing common rules and standards for services. The agreement also establishes common rules and standards for suppliers of digital, financial, professional, and business services, enabling firms to tap a market of over 500 million people, opening up a new world of talent, potential and progress.
For more insights and investment opportunities in Canada, check out our perspective on Indigenous Investment in Canada.
What does gigCMO's Fractional CMO Service Do for Businesses?
Expanding into the Canadian market requires strategic planning, market knowledge, and operational excellence. gigCMO's Fractional CMO Service provides businesses with the expertise and resources needed to navigate this complex process and achieve successful market entry.
Companies that work with our Fractional CMO Service have access to the experience and skills of a commercially driven marketing leadership and have repeatedly succeeded in delivering high revenue growth and return on marketing investment. Our Growth Playbook ensures that delivery is consistent with proven best practices and strengthens the capability of our clients to succeed in Canada.
If you're looking to expand into international markets and want expert guidance to help you achieve your goals, contact gigCMO for a FREE consultation and find out how we can help you grow your business and revenue in new markets.
