Why should The Cheesecake Factory invest in Canada?
Canada prides itself on its diversified economy, wide resource base, and secure banking and tax environment. The nation also has the world’s tenth largest economy, and between 2008 and 2011, it led the G-7 with a GDP growth rate of 1.0 percent. Canada’s banking system is also number one in the world for financial strength. This will be very beneficial for The Cheesecake Factory because they can safely invest their business in Canada and not have to worry about the economy crashing. Canada’s economy was also the first among G-7 nations to recover from the employment losses that occurred during the global recession. This would be an advantage for The Cheesecake Factory because employment rates will be stable. The Canadian dollar is also currently higher than the American dollar. This will benefit The Cheesecake Factory because they would not have to change their prices when opening a chain in Canada. Therefore, The Cheesecake Factory will generate high profits with the Canadian currency
2. Innovation Strategy
Canada’s innovative immigration policy is enabling fast population growth. This fast growing population increases consumer spending, which creates opportunity for new businesses. With The Cheesecake Factory’s successful model in the US, they are sure to reap the benefits of this increased consumer spending in Canada.
3. Seamless North American Market Access
As an American based company, The Cheesecake Factory has a well established infrastructure, including a vast supply chain network. Starting up operations in Canada allows The Cheesecake Factory to utilize their American supply chain in their Canadian locations. This can be done rather easily through the benefit of multiple border crossings near major Metropolitan areas. This ultimately reduces The Cheesecake Factory’s cost of operations in their Canadian locations.
- Stable Economy
Canada prides itself on its diversified economy, wide resource base, and secure banking and tax environment. The nation also has the world’s tenth largest economy, and between 2008 and 2011, it led the G-7 with a GDP growth rate of 1.0 percent. Canada’s banking system is also number one in the world for financial strength. This will be very beneficial for The Cheesecake Factory because they can safely invest their business in Canada and not have to worry about the economy crashing. Canada’s economy was also the first among G-7 nations to recover from the employment losses that occurred during the global recession. This would be an advantage for The Cheesecake Factory because employment rates will be stable. The Canadian dollar is also currently higher than the American dollar. This will benefit The Cheesecake Factory because they would not have to change their prices when opening a chain in Canada. Therefore, The Cheesecake Factory will generate high profits with the Canadian currency
2. Innovation Strategy
Canada’s innovative immigration policy is enabling fast population growth. This fast growing population increases consumer spending, which creates opportunity for new businesses. With The Cheesecake Factory’s successful model in the US, they are sure to reap the benefits of this increased consumer spending in Canada.
3. Seamless North American Market Access
As an American based company, The Cheesecake Factory has a well established infrastructure, including a vast supply chain network. Starting up operations in Canada allows The Cheesecake Factory to utilize their American supply chain in their Canadian locations. This can be done rather easily through the benefit of multiple border crossings near major Metropolitan areas. This ultimately reduces The Cheesecake Factory’s cost of operations in their Canadian locations.