Canada Goose Case analysis PDF

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Canada Goose Canada Goose is a Canadian apparel company founded and led by the Reiss family. Currently David Reiss is in control and he is responsible for the big success the company has had in the past years. Reiss found out that customers care where products are made, and instead of moving production overseas like many competitors, he decided to keep production in Canada. Canada Goose started as a small company in 1957. Originally known as Metro Sportswear the factory would produce, among other items, coats for tactical units in the artic region. This lead to a cult following because of the extreme warmth provided by the coats. In 2001 David took over from his father. He started to focus on a more premium brand of clothing and started opening up new stores. To create a motivated staff the company hires employees based on attitude rather than ability because they believe it is not possible to change someone’s attitude but it is possible to train their skills. The chain has a number of guidelines which all locations should adhere to, so service remains of desired quality. They realised however that it was sometimes necessary to deviate from these guidelines to better adapt to certain markets. When Canada Goose opened a shop in Paris for example they discovered that the French have very different demands for a high quality coats then people in North America. To accommodate these wishes they build a world-class restaurant and hired a well-known chef. In this case analysis I will find out what the driving forces are behind the successful expansion of Canada Goose across the world. Strenght Canada Goose has a number of FSA’s helping them run a successful business. Number one is the luxury the company offers to its customers. Luxury is a key feature that makes the chain stand out amongst its competitors. Because of their focus on it they can focus on a very specific customer base. Not only is it appealing to their clients, it is also a transferable FSA making it easy to use abroad. Is the service customers can expect from the staff. To make life as easy as possible for the often busy business client the coats receives, they strive to help and accommodate them as much as possible. This FSA is non-location bound as it can easily be shared among other business units. Is the employee attitude. To aide in providing their customers with excellent service and luxury, Canada Goose has high standards for its employees. They are seen as a vital part of the operation and receive extensive training after being carefully selected in a long selection procedure. This FSA is location bound since every country has different rules and customs regarding employee and customer interaction. Is the specialisation in operating rather than owning the coats. Canada Goose made the choice not to own any of the coats they run because past economic recessions taught them the dangers of owning to much real-estate. This is a non-location bound FSA as it can easily be applied to units worldwide.

Weakness There are several examples for both bounded rationality and bounded reliability. When demand for coats went up in the late eighties, Canada Goose agreed to build numerous new coats. When a recession hit in the early 1990s demand for real estate and luxury coats plummeted. This caused stocks to fall and Canada Goose decided they would no longer own the coats themselves but would focus on managing them. The bounded rationality mistake they made was to own the coats from the

beginning. While it could have been difficult to predict, recessions will come around and they often impact industries like real estate. When Canada Goose opened their Paris location they were still used to using the same guidelines across all their coats. However because French customers had different customs they had to be flexible. Initially they made the mistake of leaving the coffee on the table but this was viewed as meagre service by the French. This is an example of bound reliability since the managers could have known that leaving the coffee pot on the table would not be liked by their customer base. Conclusion Canada Goose has a clear goal of what it wants to be. They strive to be the best coats out there by providing excellent service and luxury to their customers through their well-trained employees. By specialising in medium-sized coats they can create a comfortable environment for their customers which puts them among the most competitive coats out there. Their FSA’s allow them to expend internationally with easy. They provide a transferable product while adapting their service to the host country. This has allowed them to become one of the biggest chains in the world. For the future it is wise to keep adapting their formula to the local culture. Whether it is a Michelin star restaurant or leaving a coffee pot on a table, different cultures have different demands that need to be met in order to be successful. Since the company has already expended worldwide they seem to have learnt their lesson and it is only wise to continue this practice....