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Canada Goose Inc.Individual Case Study #CPL2-552-761 Strategic ManagementObjective Our objective is to establish a detailed expansion strategy locally and globally by analyzing the critical success factor, innovative product development, and distribution strategy.Company and Industry Analysis Canada...

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Canada Goose Inc.

Individual Case Study #1 CPL2-552-761 Strategic Management

Objective Our objective is to establish a detailed expansion strategy locally and globally by analyzing the critical success factor, innovative product development, and distribution strategy. Company and Industry Analysis Canada Goose is a luxury brand with the highest quality in the North American apparel Industry established in 1957. Canada Goose is a great Canadian success story that is over 60 years in the making jackets for the coldest climates in the world. Canada Goose has made many strategic choices along the way that have led to the success it is experiencing today. Today, Canada Goose has eight factories in Canada, training schools, stores in 12 cities around the world, and prosperous E-Commerce business. For the Knitwear category, the company decides to manufacture in Italy and Romania. Few of the competitors are North Face, Patagonia, Columbia, and Rudsak Positioning Canada Goose can be positioned as a brand with a unique identity, highest quality, exclusive design, and luxury. The market-positioning map of Canada Goose has given in Appendix A. Critical Success Factor Brand’s authenticity: “Made in Canada” is the brand and value for the consumers to protect from extreme cold weather. Who knows cold better than Canadians. Efficiency from learning Curve from own Training school: Canada Goose has its training schools for giving training on how to operate an industrial sewing machine, set a zipper, and more. Skilled sewers and workforce ensure the quality of the product, which is the backbone for the success of this company. It’s a story not only a brand: The authentic reputation of Canada Goose is the foundation for an iconic brand. The people who lived and worked in the coldest places wore the Canada Goose Brand. The expedition team in the North Pole and TV and film crews shooting in remote cold-weather locations where temperatures could fall well below freezing were wearing Canada Goose Jacket. The stories from these people are blending with their outfit-a story of survival in cold Mother Nature. Word of mouth: Canada Goose is adopting cultural branding. The technique is you try to get people to use the product and talk about it with their friends. That is not in the hands of the marketing team; that is in the hands of the consumers. It is much more powerful and credible, much more approachable. Competitive Edge Own training school creates a skilled workforce, which gives the company a competitive edge compared to its rivals. This specialized workforce is working for upholding the image of “Made in Canada” which has a true

meaning for consumers. Canada is one of the coldest countries in the world (average temperature -5.1 Celsius)1. A country has the experience of the necessity and usefulness of its product. Therefore, Canada Goose’s “Made in Canada” identity gives a competitive edge over its rivalry. Growth Strategy Canada Goose is mainly a local business with high quality and looking for expansion opportunities in the product line segment as well as develop business globally. There are several points are worth noting in this regard. 

In 2017, the company went public, so the company has better financing opportunities.



From 2015 to 2019, revenue and net income have stable growth. However, the net profit margin is

low. The company may look for minimizing the cost and continue with the same pricing strategy 

From 2018 to 2019, the sale revenue and net profit have increased by 37% and 45% respectively2.

Distribution and Marketing The distribution of the product depends on local retail stores (Flagship stores) and e-commerce. The marketing is solely based on word of mouth and reputation about the quality of the product. Recommendations 1. Remain local but reach global - maintain the Canada Goose brand. The global demand for products arises from its necessity. There are regions or countries in the world, where the temperature is very low and at the same time, the income level of the country is high enough to have this kind of brand. Canada Goose has already expanded its market in Italy and Romania. They can look for future opportunities where the demand and purchasing power matched with the product lines of Canada Goose. Switzerland, Norway, Sweden, Finland, and Russia may be new markets to expand for Canada Goose. These are the countries with low tempearyre and higher purchasing power. Apart from these countries, Asian countries can be a focus for expansion in near future. (Appendix B: Possible Countries for Global Expansion: Per Capita GDP and Lowest Temperature Comparison). 2. Minimize the cost of production through learning cuve approach and economies of scale. Minimization of the cost will allow Canada Goose to be competitive with other luxury brands more efficiently by offering more quality products and services. Cost minimization does not 1 https://en.wikipedia.org/wiki/List_of_countries_by_average_yearly_temperature

2 https://ycharts.com/companies/GOOS/revenues_annual

mean compromise with the price rather focuses more on the quality and sustainability of production competition.

Appendix Appendix A – Canada Goose Positioning Map (vs. Competitors)

Market Position Map of Canada Goose

High Values

Canad a

North Face

Columbi a Low Price

Low Costs

High Costs

Appendix B – Possible Countries for Global Expansion: Per Capita GDP and Lowest Temperature Comparison...