Ibb300- Assign (Done)

IBB300-Internatonal Strategies HOOI SIEW WEI (n6046746)

Introduction:

This report is aim to discuss the way SnowSports enter to the new market in Canada,

it have to consider the internal and external factors that will affect to the company

organization. In the beginning of the report, it will brief to talk about the history of the

SnowSports Company, and identify the problem and the issues that facing by the

SnowSports. Firstly, PESTLE will be use to analysis in the country, and then Porter 5

forces will be use to analysis in the industry and SWOT analysis for the firm’s

organisations. Lastly, recommendation will be discussed either SnowSports should

enter to Canada market.

Background of the SnowSports Interactive:

The founders of the SnowSports are Steve Kenny, Michael Brett and Shubber Ali,

they were met each other in 2002 and 2003. In January 2004, Steve and Shubber

talked about the product of tracking system, Flaik, in which to track skiers’ and

snowboarders’ location and provide other real time information. SnowSports

Interactive Pty Ltd had become a private company in Brisbane in the middle year of

2005. Later on, big opportunities had emerged when Steve met Tony Peterson, who is

the Manager of the Mt. Buller and Mt. Stirling, and signed an agreement on the

tracking system and wireless Internet sales. Additionally, they include wireless

product, Whispar, in which the system is currently install in the Mt Buller’s ski resort

and it is a good source of revenue for a company who had just started up. SnowSports

Interactive is a relatively new company trying to penetrate into the ski resort market

for winter season (SnowSports Interactive, 2006).

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Problem/Issue identification

The main issue here is SnowSports Interactive is tend to sell or lease the infrastructure

into Canada, the company is analyzing the country to see whether it is worth market

to enter into and how would they encounter into the ski industry in Canada.

Despite many trials and advancement pursued by SnowSports Interactive, they face

many critical problems. One problem would be whether the Canada’s ski resorts were

able to handle and take the helm of tracking system. Since nowadays climate changes

in the world were one of the problems they face these days, and it has influence in the

ski industry around the world including Canada. For example, due to the winter

period is getting shorter, ski season will get shrink, and demand decrease is the

problem faced by SnowSports Interactive.

There is lack of experience staffs in Canada to handle with Flaik, because the product

and services offer by the SnowSports is highly technology and needed technical

management to take in charge of the tracking system that sells in Canada. Besides, the

government is changing their policies over time and the way government controlled

the citizens working condition is another problem faced by the business.

Scope and limitations

SnowSports is focuses on the potential ski resort in the Canada. As Canada’s ski

industry is well-known around the world and it is famous place for skiing and snow

activities, thus increasing the potential for them using SnowSports product. The

limitation of SnowSports is unable to control the management and services provide to

encounter with the problems in SnowSports product in Canada.

Market research- Canada:

According to the Ski Canada Magazine (2007), it shows the highest ranking’s ski

resorts are held in Canada. The top of the ski resort in the world is Whistler Resort.

Most of the ski resorts have earned high revenues and achieve high market share in

the ski industry in Canada. Based on the research in Canada, there is a plenty of

potential ski resorts still have not install the tracking system, thus Canada had chosen

as a new market to be analysed.

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Resources –Based Consideration:

According to Peng (2006), SnowSports using the resources based view consideration

to concentrates on their internal strength and weakness (S and W). In addition, has

used the VRIO framework to determine the strategic resources available to them.

Based on the figure 1, show that the Analysis of SnowSports by using the VRIO

framework.

VRIO Framework Analysis

Value This has created value to the SnowSports if they enter to the new

market –Canada. It’s bringing them to achieve the economic of

scale, also increase the brand awareness of the product.

Rarity Since the SnowSports’s have special features among the

competitors; it has created the opportunity for them to export

their product to other market such as Canada. Also, they must

have unique skill to execute such strategy.

Imitability Due to the SnowSports have the competitive advantages, where

the special high quality and good in performance’s product-Flaik,

this will limit the competitor imitate their product.

Organization Fundamentally, if the SnowSports export their product-Flaik to

Canada, these will add value boil down, which the SnowSports

have take advantages of benefit. For example, this will minimise

their cost and increase the profitability of the organization.

Figure 1: VRIO framework of SnowSports

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Analysis:

1. Country Analysis- PESTLE

The PESTLE analysis should be use to provide a context for the organisation’s role in

relation to the external environment. It covers Political, Economic, Social-cultural,

Technological, Legal and Environmental factors. Thus, the SnowSports Company

have used the PESTLE analysis as a basis for future planning and strategic

management.

1.1. Political Analysis

The British government grant full autonomy to Canada after Canadian politicians

devised the federal model and division of powers to develop their identity in

Westminster system despite from enshrined by British Parliament in the

Constitution Act 1867. The political system knows today is patterned partly; this

gave the authority to the Queen and making Canada as a sovereign democracy

(Canadian Political system, 2007). Overall, the political is stable in Canada.

1.1.1. Type of the Government

According to the Oliver (2007), Canada is parliamentary democracy. This

means that head of state is the Queen after the system changed by the

Canadian politician and the authority comes from Canadians, also has federal

system changed by the Canadian politician and the authority comes from

Canadians, also has federal system in within. The federal government have

some power in national areas, such as trade, the military and development.

Canada is also sometimes referred to constitutional monarchy.

1.1.2. Tariff

Canada government are favours in the reduction elimination of tariffs, despite

on Canada’s consumer often pay higher price for goods and also to decrease

the tariff impose from the trading partners on their exports. To increase flow in

trade by eliminating trade barriers, three countries which is Canada, Mexico

and United States has signed North American Free Trade Agreement

(Government of Canada- Tariff, 2007). For those companies who intend to

export goods and services in these countries will have low trade barriers of

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entry. Low tariff barrier would easier for tracking system-Flaik entry into the

ski industry in Canada.

1.1.3. Taxes

Canada-US tax treaty was signed recently; it will benefit both business and the

economy. Previously, Canada’s tax are high, is about 30% for an average

person, it will gives tax relief to Canadians who receive U.S social security

benefits and the business in Canada (Canada, 2007b; Government of Canada,

2007b). Canadian businesses that removing the withholding tax will reduce in

borrowing costs and making the business to be more efficient and competitive

(The Canadian Press, 2007). Due to the tax reduction, the Canadian businesses

will result in reduce in their cost of capital and increased in their investment.

This eventually allows Flaik to enter into the industry as there are more

chances to get the Canadian business to invest in SnowSports. According to

OECD, Canada has the highest marginal effective tax on capital in the

developed world (Economist.com, 2007).

1.1.4. Trade Agreement

There is close cooperation in United Nations (UN) has established the

relationship between Australia and Canada. Both countries have common

interest in world trade system and also involves in the General Agreement on

Tariffs and Trade (GATT) and World Trade Organisation (WTO). In addition,

Australia and Canada also work actively and closely in international

organisation such as the Organisation for Economic Co-operation and

Development (OECD), the Asian-Pacific Economic Cooperation (APEC)

forum and many other UN agencies. Canada also has bilateral relationship

with United States and Afghanistan (DFAT, 2007). Through the close

cooperation between Australia and Canada, this encourage the SnowSports

Company could enter into Canada to launch its product-Flaik and also gain

competitive advantaged over its competitors in Canada.

1.2. Economic Analysis

Canada has market economy system, which this country is depend on the buyers

and sellers play a significant role and prices are determined through demand and

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supply interaction (World Economic, 2007). Also, the country’s economic well-

attribute on those factors such as “the wealth of natural resources, the strength of

its manufacturing and construction industries, the skilled labour force, and the

health of the financial and services sectors” (DFAT, 2007).

1.2.1. Income level

Based on the World Bank’s country data show that Canada is a high income

level country (The World Bank, 2007). As the income level of the Canadian

are high, they will have the ability to afford to go to ski resort, thus increasing

the potential of them using SnowSports’s product. This in turn will increase

the attractiveness of SnowSports Interactive’s products and services towards

the Ski Resort Company.

1.2.2. Inflation

Refer to the Appendix 1, show that the latest report of inflation rate in Canada

is declining from 2.2% in July to 1.7% in August (Government of Canada,

2007). This also has resulted the purchase power has increase in the Canadian

market. Since the inflation rate of the Canada is slowly declining and low,

there will be price stability. Thus, the Ski resort will be charging at the

constant price to the customers.

1.2.3. Gross Domestic Product Rate (GDP rate)

The Gross Domestic Product rate (GDP) of the Canada is increase slightly in

2007, which can refer to Appendix 2. The growth after 2006 has led the

increase in the Canadian’s living standard. Since their living standard is high,

most of the Canadian will more likely to go for skiing, which led the increase

sales of the Ski resort.

1.2.4. Tourism rate

Based on the Canada’s International account (2007) show that the balance of

payment in the international travel account between the 1st quarter 2006 and 1st

Quarter of 2007 (Refer to the Appendix 3). In the 1st quarter of 2007, the total

receipts from all visitors travelling to Canada reached $3.0 billion, for an

increase of 2.3% over 2006. According to the weather of the Canada, the 1st

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Quarter of the year is during the January to March- winter; this has resulted

that have increase people visit to Canada during the winter period. Thus, this

will bring more attractiveness to the ski resort to use the SnowSports’s

product- Flaik; since there are increasing foreigners to go for ski.

1.3. Social-Cultural Analysis

Historically, European and traditions has influenced Canadian’s cultural,

especially British and French. Eventually, the elements of the culture of Canada’s

aboriginal people and immigrant population have become incorporate into

mainstream Canadian culture.

1.3.1. Cultural

Canada remains one of the most multi-cultural and multi-lingual countries in

the world. Since the Canada has a variety of artistic cultures, has resulted most

of the Canadian are interest in dance and music gets clearly reflected in

“symphony orchestras, opera companies, classical and modern dance groups,

and live theatre, which are quite common in Canada” (Canada Economy,

people, cultural, flag, 2007). In addition, according to the business edge news

magazine (2004), stated that “many people are like to ski”, this has resulted

the increasing the people skiing in the Canada. Since the cultural of Canada

are quite similar to Australia, where both Canadian and Australian are like to

ski, thus, this has brought the attractiveness for SnowSports to export their

Flaik to the Canada’s Ski resort.

1.3.2. Ethics and religion

Canada has a variety ethics, such as British Isles origin, French origin, Other

European, Indigenous Indian and Inuit, other mostly Asian, African, Arab and

mixed background (Refer to Appendix 7). Also, there have different religions

in Canada, such as Roman Catholic, Protestant, other Christian, Muslim, other

and unspecified and none religion (Refer to Appendix 8). Although Canada

has different Ethics and religion compare to Australian, SnowSports have to

adhere to the local custom to enter to the Canada market.

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1.3.3. Demographic

According to the world bank data (Canada, 2007), show that the total

population in Canada has increase 0.3 million from 32.6 million in 2006 to

32.3 million in 2005. Also, has resulted the population growth rate have

increase 0.8% in 2007. Based on the Canada’s age structure show that the

majority age in Canada are in 15 to 64 years old, which held 69.2% (Refer to

Appendix 6). Also, 99% of the Canadian are literate and maintain a high

standard of living. There are large portion people in the age between 15 to 65

years old and most of the Canadian are literate. Since most of the Canadian are

literate, they will more consider the safety on playing ski. Thus, this will be a

big market for the SnowSports to launch their product to Ski resort in Canada

market.

1.3.4. Language

From the Canada’s country data show that the majority of the people in

Canada are using the English language (GeographyIQ, 2007). English and

French are the official languages where there have 59.3% people are using

English, 23.2$ using French and 17.5% people are using other language. Due

to the majority of the Canadian are using English language to communicate; it

is easier for the SnowSports to communicate with the Canadian, since the

mother language using by the SnowSports are English.

1.4. Technology Analysis

Due to the popularity of broadband access in Canadian businesses and households

has increased as the internet has now integrated into day-to day life. With 114

internet hosts per 1000 population in the country, there shows that they have quite

strong internet users (economist.com, 2007).

1.4.1. Global Positioning System (GPS)

Based on the CGDI (2005) found that Canada had supported Global

Positioning system (GPS) in their country. In early days, it helps Canadian in

understanding earthquakes in eastern Canada. Also, the GPS applications are

improving by requiring accurate and updated data to ensure their marketability

and relevancy. While Flaik is also kind of Global Positioning System, so

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SnowSports can enter into Canada market without worrying on the prohibiting

in the technology use.

1.4.2. IEEE 802.11 b/g standard in Canada

According to OECD (2002), a recent adoption of the IEEE 802.11 b/g have

opportunities for new and innovation suits of consumer equipment become

available in Canada. This shows there is compatible use of 802.11b/g internet

wireless connection in the country. To ensure that Canadians are provided

with the most advanced communications facilities and devices, in 1999

Industry Canada designated 300 MHz spectrum in the 5 GHz band for the

operation of license exempt wireless local area networks (OECD, 2002).

Canada government support IEEE 802.11b/g wireless connection in their

country, so that the tracking system, Flaik can be use to connect to the

Whispar services to track the location of the skiers.

1.4.3. Regulation of Wi-Fi in Canada

In addition, there are some regulations for the use of 5150-5250 MHz band, it

includes a maximum EIRP of 200mW and it is for in door use only, while the

use of 5250-5350 MHz band includes the maximum EIRP of 1W (OECD,

2002). Also, Canada doesn’t allow the 4900-5000MHz band and 5470-

5725MHz band available for 5GHz WLAN services. So, if SnowSports want

to launch Whispar in Canada, they must not against the regulations, but still

Whispar can launch in the country since the internet services is available there.

1.5. Legal Analysis

In Canada, the Parliament of Canada passed the acts of law and the provincial

legislatures are the primary sources of law. Also, each of the government have the

power to create legislation is found in the constitution Act 1867, which

enumerates the valid subject matter that either government may create.

1.5.1. Common Law & Civil Law

Canada’s historical connection with United Kingdom causes the common law

bind into the country’s legal system. All provinces and territories in Canada

are based on English common law, except in Quebec is civil law system. All

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courts must follow the decisions of more senior courts (CIA, 2007). Because

of the uniqueness in Quebec, despite of their training in common law or civil

law, hey have extra special training for the lawyers in other legal system.

1.5.2. Copyright

There is copyright law bind in Canada. It is mend to protect the right of copy

applies to all original literacy, dramatic, musical and artistic works. It is also

includes of copyrights protection for computer programs and systems. In the

result of, if SnowSports’s product wants to sell in Canada, they have to keep

away from copyrighting from and to others. Besides, if Flaik wants to be

protected by Copyright laws, the company needs to go through the application

for registering for a copyright and also paying an amount of fee.

1.5.3. Trademark

In order to protect the intellectual property through trademark in Canada, it

may have to register in Canada pursuant to the Canadian Trademarks Act

(Trademark Law in Canada. 2006). Based on the internet sources, the fee to

register for a trademark in Canada is quite similar with the Australia, so there

is not much difference (amount) in applying in trademarks in Canada. It is also

good news for SnowSports’s product to enter into Canada’s ski industry.

1.6. Environmental Analysis(Location)

Canada is located in the northern-most region of North American and is one of the

second largest countries in the world (Canada, 2007). With the Atlantic, Pacific

and Arctic oceans, Canada boasts the longest coastline of any country.

Furthermore, Canada has a total area of 9.9 million square kilometers, also

included 755,170 square kilometre of water. As well, Canada is a vast land with

diverse geography and the climate also varies widely (Canada, 2007).

1.6.1. Climate (season period)

The seasons of the Canada are similar to the Australia, which the Canada also

has the season of winter, spring, summer and fall (Travel to Canada-Season,

2006). Overall, Canada features cold winters and short, hot summers. Based

on the Canada’s season (2006) show that from May to Mid- September is idea

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for touring, camping out and seeing the sights and the rest of the year is the

best for skiing and snowboarding. Also, there are stated “the ski season runs

from December until late March in the east, and extends to late May (and

sometimes even June) in the ski hills of the west” (Canada, 2006). Since the

winter period in Canada is long, the Canadian will more likely to spend their

time go for ski. This is increase the attractiveness for the Ski resort to use

SnowSports’s product, since Flaik can enhance the safety of the skiers in the

Ski resort.

1.6.2. Ski Area

Refer to the Appendix 4, show that the most of the ski area in Canada are in

Alberta, British Columbia and Quebec. In Alberta, there are four main ski

resorts in that area such Ski Banff-Lake Louise- Sunshine, Sunshine Village,

Lake Louise Mountain Resort and Ski Marmot Basin. While in the British

Columbia, the majority of the Ski Resorts are Big While Resort, Silver Star

Resort, Fernie Resort, Kicking Horse Mountain, Sun Peaks and Whistles.

Also, in the area of Quebec, there have Eastern Townships, Quebec City-

Charlevoix, Tremblant and Stoneham (Ski Canada, 2007). Overall, there are

quite a lot ski resorts in Canada, this has resulted a very big business

opportunity for SnowSports to launch the Flaik in Canada market.

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2. Industry Analysis-Porter 5 Forces

Figure 2: Porter 5 Force

The Porter 5 forces analysis is a framework for business management developed by

Michael Porter in 1979. The 5 forces determine the attractiveness of a market. They

consist of those forces close to a company that affect its ability to server its customers

and make a profit.

Based on the Figure 2, it is clearly seen that the four forces which includes bargaining

power of buyers, bargaining power of suppliers, threat of new entrants and the threat

of products combined with other variables which in turn tends to influence the fifth

force, the level of competition in an industry. The five main forces shown in figure 1

are the key factors that influence industry performance.

2.1. Rivalry among competitors

Intensity of rivalry is average as entry to the tracking system industry is

intermediately easy; due to the cost to produce the product is high. Generally,

competitive rivalry will be high because there are some of equally sized and some

of the competitor would have similar strategies (SnowSports Interactive, 2006).

Although there have some of the competitors in the market, but there are not easy

for the competitor to imitate SnowSports’s product, due to the Flaik have the

competitive advantages in relative to other competitors (SnowSports Interactive,

2006). Furthermore, since there have not much competitor in the market so there

are low in the threat of rivalry. As the result, the rivalry will increase slowly as

buyers have average switching cost.

Bargaining Power of Buyers

Threat of New

Entrants

Competitive Rivalry within

an Industry

Threat of Substitute Product

Bargaining Power of Supplier

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2.2. Threat of Potential entrants

Threat of the new entrants is low as SnowSports have provided the product

potentially and with special features in related to other competitors. Therefore,

they will not easy to attract new entrants. Also, the customer switching cost will

be high will inturn discourage new entrants enter to the same industry.

2.3. Bargaining power of Suppliers

Since the SnowSports Company is not going to manufacture the Flaik product in

Canada, so that, the threat of the supplier’s bargaining power is low. This has

resulted bargaining power of supplier is low and it does not affect the SnowSports,

so that, the SnowSports have the big opportunity enter to the Canada market.

2.4. Bargaining power of buyers

Based on the Ski Canada Magazine (2007), there are quite a lot Ski Resorts held

in Canada. Since there is much a lot potential Ski resort in Canada, thus, the

buyers have held the moderate bargaining power. This probably will bring the

average threat to the SnowSports; due to there are quite a lot buyers in the market.

Thus, may less affect the SnowSport’s selling price to the Canada’s Ski resort,

which led the profitability high.

2.5. Threat of substitutes products

Threat of the substitute is low for Snowsports, which the substitute products of the

Flaik are ski jackets (tracking suit), compasses, watches and snowmobile. Since

Snowsports’s Flaik can track the skier position and provide other real time

information such as speed, number of runs, and vertical distance travelled. So,

there are less attractive for the customers to switch from one substitute product to

another because the product that customers can purchase over Snowsport’s Flaik

that have offers more benefit than other substitute products.

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3. Firm Analysis – SWOT Analysis

SWOT is an abbreviation for strength, weakness, opportunities and threats. The

SWOT analysis headings provide a good framework for reviewing strategy, position

and direction of a company or business proposition, or any other idea. The SWOT

analysis for SnowSports is shown in figure 3.

Strength Weakness

Superior product, performance and good in

quality

Specify in product differentiated

Can easily redesign their technology

Provide latest technology

Recruit experience management and team

Great ideas from specialised team members

Commenced negotiations with strategic

commercial and technological partners

Have a common language

Easily gather information from Canada

government

Supportive in protection intellectual property

Past experience

Limited capital and resources

No control over the weather

High costs in protecting their brands

Limited experience employees

Opportunity Threats

Could enter to the potential Market

Local competitor have poor product

Profit margin will be good

Increase brand awareness

Achieve high market share

Achieve to Market leader in the ski industry

Rapid growth in Australian economy

To gain the customer loyalty

Potential Competitor

Government regulation

and controls

Changes in legislation

Changes in currency rate

Face competitor in new

entry

Seasonal market demand

Figure 3: SnowSport’s SWOT Analysis

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3.1. Strength

SnowSports Interactive has superior product, performance and good in quality. It

was designed in small light-weight to be worn by the skiers and snowboarders, in

order to track whereabouts of their family or friends. They have product

differentiated in relative to other competitors where they have provide more

features, such as locate friends, safety applications and resort management.

Furthermore, the company have a strategy that could redesign their technology in

order to satisfy the customer’s needs. This shows there is product innovation

ongoing in the company. It is also considered as a latest technology with unique,

proprietary applications and services for ski industry among other competitors,

such as NAVMAN, NASTAR and SlopeTracker.

SnowSports had recruited an experienced management and research and

development team. Most of the perfect ideas was came from the team of the

members as they have different background and specialised. Their friendships had

cause them to have more understanding with each others in the team will be easier

to solve problems. They also identified and commenced negotiations with

strategic commercial and technology partners, so that they can work more closely.

It is easy to communicate with customer in Canada, as they were using the similar

language as in Australia. Moreover, the company can easily get information from

Canada government about the number of ski resort and also can gather the ski

resort’s data and contact details. It will be easier for Snowsports company think

about which ski resort should sell or lease their product to. In addition, it allows

communicating with them. In order to prevent plagiarisms, Snowsports are

supportive towards protection intellectual property; they have expected to protect

their brand by using patents, trademarks, copyrights and so on. So that, customer

will not misdirect towards their product.

Besides that, they have experiences in Mt. Buller and this has shows that the

success record in Australia. They will get the benefits from experience to enter

into Canada.

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3.2. Weakness

They have limited capital to finance and difficult for them to travel over to Canada

to discuss and negotiate about the terms and conditions. Also, Canada do not have

Whispar company, they have limited resources like the system to support them in

enter the market and for the services. Snowsports need to travel to Canada to give

service to them and this increase in costs.

SnowSports product is segmented to ski industry in the resorts and skiers, the

company’s weaknesses is that they can’t control the weather as the weather could

change in any time. For example, they can’t estimate the how long winter season

will last; therefore, they could have just roughly forecast their sales. Besides that,

the company is protecting in their brand name and product’s copyright. The cost

of protecting had occupied their capital and they have less capital to do promotion

in Canada. Also, due to the lack of experience workers in selling the Snowsports

product in Canada will cause the management to face problems and slower down

the selling progress to another stage.

3.3. Opportunity

There are a lot of opportunities to pursue Snowsports since it is already in a global

market. Since Snowsports Company have success to launch their Flaik in one of

the Australia ski resort, so that, they might be able enter the other potential

markets in the world such as Canada, US, Europe, Japan and so on.

Local competitor such as NASTAR, SlopeTracker, Suunto and NAVMAN, they

have fewer features than Snowsports. For example, SnowSports Company’s

product Flaik also have the competitive advantage which their design as a small

light-weight tag and it ability to track whereabouts of their family and friends.

Possibility, it will increase the brand awareness of the Flaik. In addition, if the

SnowSports can sell more of their product-Flaik to other country around the

world, it will bring the benefit for them due to the increasing on their profitability

and market share in the ski industry. If the SnowSports have the highest market

share in the ski industry, possibility can lead them to be the market leader.

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Also, it will bring benefit to the Australia’s economic; due to SnowSports have

increase to export on their product to the other countries. Furthermore,

SnowSports can gain the customer loyalty on their product, as they have provided

the professional services to the customers. Since the customer feel satisfied on the

SnowSports product, this will led the customer’s intention to buy or increase their

repurchase action toward SnowSports’s product.

3.4. Threat

Overall the threats of Snowsports are the government regulations and control is

threats of the company as the company could be limit by the regulation for extent

their product to another product stage level.

There is also the legislations in Canada could change time to time, this could

impact on the company as well. Furthermore, the changes in currency rate

overtime could have cause difficulty and complicate the decision making in the

company. In addition, there is also a threat for Snowsports for not being able to

expect on the high and low in the economy of Canada.

As well, new entry to the ski industry in Canada, it will be risky to the company as

they need to choose which ski resort to sell or lease the product to. The market

demand of the product is unstable as the product is seasonal, in which it depends

on the season period.

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4. Recommendation

There are many actions and alternative courses to be done to improve the business of

in SnowSports. The first recommendation would be, before enter to Canada market;

better marketing research should be conducted in the first place. According to

Deresky (2006, 226), the process of gathering and forecasting relevant trends,

competitive actions, and circumstances that will affect operations in geographic areas

of potential interest is called environment scanning. Although the factors of political,

legal and social-cultural are stable, but economic factor that instability is still need to

be focused. For instance, in the risk of transfer their funds.

Due to the lack of experience workers, SnowSports should have provide some

training programme for the workers to gain better knowledge and gain more skills. In

addition, human resource management should try to conduct performance appraisal as

this is a good way to communicate with employees and to better know employees and

their standard of performance. It will be more efficient in running the business.

Because of lack of capital, SnowSports can find ways to attract local or foreign

investors to invest into the company. Since the capital inflow can overcome their

financial problems and also there will be more future investment could be made in the

long run. On the other hand, to increase more competitive advantage, SnowSports

could improve in their product, Flaik, such as adding torchlight into their product

feature. For example, the skiers and snowboarders can use torchlight to show S.O.S

signal during emergency.

SnowSports should update their internet website often, to update the information and

news to the customers. Beside, they also can provide a space for the existing customer

to give their feedbacks and testimonials, so that they could improve in the product of

necessary. Also, they must follow the regulation of Canada’s internet connection.

5. Conclusion

After using three models and concepts to analysis the country, it has resulted good

opportunity for SnowSports to enter into Canada’s ski industry. Although there are

several threats occur, but they have the ability to overcome it with their strengths. As

the result, Canada is a potential market for SnowSports to enter.

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Reference:

1. Business Edge News Magazine. 2004. Poor early season saw more skiers

heading west. www.businessedge.ca/article.cfm/newsID/14818.cfm (Accessed

on September 21, 2007).

2. Canada. 2006. Weather and Season. www.explore.canada.travel/ctc/ke/things_

to_know_2.jsp?cat=4301&localeId=16. (Accessed on September 21, 2007).

3. Canada. 2007. Country overview-Location and Size. www.nationsencyclope

dia. com/economies/Americas/Canada.html (Accessed September 21, 2007).

4. Canada’s International Travel Account. 2007. First Quarter 2007. www.

corporate.canada.travel/en/ca/research_statistics/statsFigures/tourism_perform

ance/quarterly_international_travel_accounts/2007/ITA_Q1_2007.html

(Accessed on September 21, 2007).

5. Canadian Political system. 2007. Overview. www.onestopimmigration-

canada.com/canadian_political_system.html (Accessed on September 22,

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Appendix :

Appendix 1: Inflation Rate 1998-2007

Consumer Price Index (CPI)

2005 basket content

Year-over-year percentage change

YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

1998 1.1 1.0 1.0 0.9 1.1 1.0 1.0 0.9 0.7 1.1 1.2 1.0

1999 0.7 0.7 1.0 1.6 1.5 1.6 1.9 2.1 2.6 2.3 2.2 2.6

2000 2.2 2.7 3.0 2.2 2.4 2.8 2.9 2.6 2.7 2.8 3.2 3.2

2001 3.0 2.9 2.4 3.5 3.9 3.4 2.7 2.8 2.6 1.9 0.6 0.7

2002 1.3 1.4 1.9 1.7 1.1 1.2 2.1 2.5 2.3 3.2 4.4 3.8

2003 4.5 4.7 4.2 2.9 2.8 2.6 2.1 2.0 2.2 1.6 1.6 2.1

2004 1.3 0.7 0.8 1.7 2.4 2.5 2.3 1.8 1.8 2.3 2.4 2.1

2005 1.9 2.1 2.3 2.4 1.6 1.7 2.0 2.6 3.2 2.6 2.0 2.1

2006 2.8 2.2 2.2 2.4 2.8 2.4 2.3 2.1 0.7 1.0 1.4 1.7

2007 1.1 2.0 2.3 2.2 2.2 2.2 2.2 1.7

Source: Statistic Canada,

www.canadianeconomy.gc.ca/english/economy/inflation .cfm

Appendix 2: Gross Domestic Product rate

Source: Statistic Canada

www.statcan.ca/Daily/English/070831/d070831a.htm

Appendix 3: Canada international travel account

21

http://www.statcan.ca/Daily/English/070831/d070831a.htm

http://www.canadianeconomy.gc.ca/english/economy/inflation%20.cfm


Table 1: International Travel Account

Balance of Payments

(Not seasonally adjusted, Preliminary Figures, $ millions)

1st Quarter

2006

1st Quarter

2007

Percent

Change

United States

Receipts from Americans traveling

in Canada 1,322 1,251 -5.4%

Payments by Canadians traveling

in US 3,790 3,864 2.0%

Balance with US -2,467 -2,613 5.9%

All Other Countries

Receipts from Overseas visitors

traveling in Canada 1,634 1,772 8.4%

Payments by Canadians traveling

Overseas 2,970 3,308 11.4%

Balance with Overseas -1,336 -1,536 15.0%

Total

Total Receipts from all visitors

travelling in Canada 2,956 3,023 2.3%

Total Payments by Canadians

travelling outside of Canada 6,760 7,172 6.1%

Total Balance (travel deficit) -3,803 -4,149 9.1%

Sources: Statistic Canada

www.corporate.canada.travel/en/ca/research_statistics/statsFigures/

tourism_performance/quarterly_international_travel_accounts/2007/

ITA_Q1_2007.html

22

http://www.corporate.canada.travel/en/ca/research_statistics/statsFigures/tourism_performance/quarterly_international_travel_accounts/2007/ITA_Q1_2007.html




Appendix 4: Ski area in Canada

Sources: Canada-welcome to ski Canada

http://ski.canada.travel/au/?sc_cid=au1&gclid=CICqrqqC1I4CFQ4cYAodZXM6zw

Appendix 5: Canada Data Profile

Canada Data Profile

Click on the indicator to view a definition 2000 2005 2006

People

Population, total 30.8 million 32.3 million 32.6 million

Population growth (annual %) 0.9 1.0 0.8

Life expectancy at birth, total (years) 79.2 80.2 ..

Fertility rate, total (births per woman) 1.5 1.5 ..

Mortality rate, infant (per 1,000 live births) .. 5.0 ..

Mortality rate, under-5 (per 1,000) .. 6.0 ..

Births attended by skilled health staff (% of total) .. .. ..

Immunization, measles (% of children ages 12-23

months) 95.0 94.0 ..

Prevalence of HIV, total (% of population ages 15-

49) .. 0.3 ..

School enrollment, primary (% gross) 99.5 .. ..

School enrollment, secondary (% gross) 107.1 .. ..

School enrollment, tertiary (% gross) 58.8 .. ..

Ratio of girls to boys in primary and secondary

education (%) 100.0 .. ..

Sources: world Bank, Canada

http://devdata.worldbank.org/external/CPProfile.asp?PTYPE=CP&CCODE=CAN

23

http://devdata.worldbank.org/external/CPProfile.asp?PTYPE=CP&CCODE=CAN

http://ski.canada.travel/au/?sc_cid=au1&gclid=CICqrqqC1I4CFQ4cYAodZXM6zw


Appendix 6: Canada’s age Structure

Age Percentage % People (Male & Female)

0 to 14 Years old 17.3% Male: 2,972,383

Female: 2,824,289

15 to 64 Years old 69.2% Male: 11,604,723

Female: 11,290,839

65 Years and over 13.5% Male: 1,927,035

Female: 2,575,972

Appendix 7: Ethnicity and Race

Ethnicity/ Race Percentage %

British Isles origin 28%

French Origin 23%

Other European 15%

Indigenous Indian and Inuit 2%

Other, mostly Asian, African, Arab 6%

Mixed background 26%

Appendix 8: percentage of the Canadian’s religion

Religion Percentage %

Roman Catholic 42.6%

Protestant 23.3% (including United Church 9.5%, Anglican 6.5%, Baptist

2.4%, Lutheran 2%)

Other Christian 4.4%

Muslim 1.9%

Other and unspecified 11.8%

none 16%

24

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