School of

Business and
Economics

Report on Canada
Semester: Summer 2022
Name ID
Tasnime Hossain 1912827030
Group Members Rafid Sadat Chowdhury 1912297030
Name & ID: Silvia Rahman Shashy 2031385630
Abid Sahariar Pulok 1912032630
Lamisa Tasnim 1931014030
Course Code: BUS251
Course Title: Business Communication
Section Number: 7
Name and initial of the
Tanya Ahmed (Tya)
course instructor:
Declared Word Count:
Date of submission 20th August
 Analytical Report
For MDO Inc.

EXPANDING BUSINESS IN GLOBAL

MARKET: CANADA

RAVEN E-BIKE
LETTER OF TRANSMITTAL
20th August 2022

Tanya Ahmed

Lecturer

Department of Management, School of Business and Economics

North South University

Subject: Submission of a report on Canada for expanding Business of MDO Inc.

Dear Ma’am,

For giving us the opportunity and scope to work on this report, we would like to convey our
gratitude. Here, we are delighted to announce that we have recently completed our study on
selecting a suitable European nation for the American electric bicycle manufacturer MDO Inc. to
grow into.

We made an effort to gather as much information as we could on Canada as a strategic area for
MDO to expand its operations. We looked into many aspects and made an effort to integrate
them into MDO Inc. Aspects that we have studied include culture, history, environment, business
problems, and competitive analyses. Following this, MDO Company might adapt some
recommendations to their plan.

For us, it was a true privilege to work on the aforementioned topic. We gave it everything we had
to make it exceptional. We trust that our report is suitable for what you require. Accept our
report with gratitude, and feel free to contact us with any questions you may have during class.

Thank you.

Sincerely

Abid Sahariar Pulok (1912032630)

Lamisa Tasnim (1931014030)

Tasnim Hossain (1912827030)

Rafid Sadat Chowdhury (1912297030)

Silvia Rahman Shashy (2031385630)

ABSTRACT:
This report was created as a component of the BU251 course at North-South University for the
summer 2022 semester. in order to understand and employ various company cultures and
communication styles. Other than that, the overall purpose of this report is to conduct research
on Canada on behalf of MDO Inc. to investigate, analyze, and decides whether they should
expand their E-bike business there. To conduct this report, we have researched Canada’s people,
their culture, geography, Language, religion, PESTEL analysis, currency, competitive analysis,
and so on. Other than that, we have also studied the business culture, environment, and
advantages and challenges of expanding business in Canada. Both a constitutional monarchy and
a parliamentary democracy are systems of government in Canada. Canada also maintains close
diplomatic ties with the UK, the USA, China, France, and other countries. Because of its close
ties to so many nations, the nation has benefited greatly from lower tariffs and simpler
regulations when doing business with foreign investors and companies. Canada encourages
technology innovation and growth wholeheartedly. Canada has become a safe haven for tech
entrepreneurs and firms looking to launch or expand their operations. Finally, MDO INC
produces e-bikes with the intention of reducing global warming while also enhancing people's
health. The chance to draw clients wishing to cut their regular transportation expenditures has
been made possible by the rise in oil prices. On the other side, when MDO INC expands, it will
face some challenges. In Canada, they want to start a manufacturing company and a warehouse.
Canada has a high cost of leverage when compared to the USA. First off, at 15.5 CAD, Canada's
minimum wage is fairly expensive and will raise the cost of production. Canadians, more than
people in other countries, demand high-quality goods, and services.
TABLE OF CONTENTS
Letter of Transmittal........................................................................................................................3
Abstract:...........................................................................................................................................4
Executive summary.........................................................................................................................6
Summary of why MDO Inc. should expand.................................................................................7
Findings and Analysis of Canada....................................................................................................7
Climate.........................................................................................................................................8
Currency.......................................................................................................................................9
People of Canada...........................................................................................................................10
PESTLE.........................................................................................................................................13
SWOT ANALYSIS.......................................................................................................................15
Country culture communication Information................................................................................16
Decision-making, problem-solving, and negotiation.....................................................................18
Competitive analysis......................................................................................................................19
Challenges......................................................................................................................................29
Recommendations..........................................................................................................................30
Conclusion:....................................................................................................................................30
Reference.......................................................................................................................................31
EXECUTIVE SUMMARY
Raven E-bike, produced by MDO Inc. aims to improve the lives of its consumers. Our E-bike
proves the exercise that our customers desire to have a healthier lifestyle. In addition, it uses
solar energy to mitigate the effects of greenhouse gas produced by the combustion of fossil fuels.
MDO Inc. was a US-based company that wanted to expand to another country to achieve
globalization. Thus, we were hired as consultants to conduct research and find out which
country would be the best for their future plans. We selected “Canada” as our target country to
expand to due to numerous factors. One such factor is that it has an abundance of natural
resources that makes it easier for us to produce E-bikes in Canada. Moreover, their population
has a high disposable income and is open to new innovations in technology. Furthermore,
Canadians are concerned about environmental issues so they would be more eager to adopt
transport using renewable sources of energy. This report aims to provide a comprehensive
picture of operations in Canada. To understand the macro factors in Canada, we have used a
PESTEL Analysis. In addition, we used a SWOT analysis to understand our strengths,
weaknesses, threats, and, opportunities in the Canadian industry. We also did a competitive
analysis to access the level of competition for the firm when penetrating the E-bike market in
Canada. Additionally, we analyzed the market segments, target market, product mixes, and
promotional mediums required to start targeting the potential customers in Canada. We used
various resources for our research such as news articles, blogs, etc. Lastly, we provided some
insight into the challenges MDO Inc. may face and gave recommendations for whether MDO
Inc. should expand to Canada based on our findings.

Raven E-bike

Raven E-bike is a two-wheeled revolutionary E-bike that utilizes solar panels to generate
electricity. It has a motor that makes riding the E-bike faster and easier for the consumer while
also giving them the exercise they desire. Moreover, it has a battery that stores energy for when
solar energy is not available or when the rider does not want to move the E-bike manually. It also
has a display that allows the rider to see what speed they are moving at. Its unique selling point is
that it uses solar energy which is renewable energy and does not produce any harmful gases for
the environment.
SUMMARY OF WHY MDO INC. SHOULD EXPAND

MDO Inc. produces E-bikes, Raven E-bikes, that aim to not only improve people’s health but
also to fight back against global warming. The company has deep roots in producing bicycles but
shifted completely to producing E-bikes when it saw a gap in the market in the USA. As they
had previous experience and resources required in an industry related to E-bikes, they succeeded
to capture the market swiftly and reap loyal customers. MDO Inc. has been the market leader in
the USA for a great number of years and its growth has become stagnant. As many corporations
similar to theirs have been expanding globally, they decided to expand to Canada due to the
increasing demands and stable political environment. Moreover, the rising oil prices have opened
a window of opportunity for the company to capture the attention of people wanting to cut down
their daily transport costs. They also want to set up a manufacturing factory and warehouse in
Canada due to the unstable and high gas prices.

FINDINGS AND ANALYSIS OF CANADA

History

The original occupants of the region now called Canada were the aboriginal people. They used to
hunt and harvest crops as a way of living. However, a Viking called Bjarni Herjolfsson stepped
into this land while attempting to survive a storm in 986. Later by 1000 Vikings wanted to dwell
in this region but were unable to due to the resistance from the aboriginal people. This had led to
Canada being a forgotten land till the 15th century when English King, Henry VII once again
discovered this land. Hence, migration to Canada accelerated by the 17th century which led to the
Canadian population expanding in numbers rapidly.
However, the French king soon became interested in occupying this region as well leading to
battles between the English and the French. This conflict lasted well into the 18th century until
the civilians lost trust in their monarchy and began demanding democracy. In 1867, Canada
founded a democratic government, and Ontario, Quebec, Nova Scotia, and New Brunswick were
federated as the Dominion of Canada.
The most development for Canada occurred in the 1920s but unfortunately, the population had
also grown so fast that it had led to a large number of people being unemployed. Later in the
1950s and 1960s, the economy of Canada began to develop substantially which led to Canada
becoming an affluent nation. Now, Canada is a prosperous county with an abundance of natural
resources and wealth.

Geography

Canada is the 2nd largest country in the world, with Russia being on top. With an estimated three
million lakes, Canada has the most water surface area of any nation. Canada covers a land area
of 9,984,670 square kilometers. Its size is comparable to that of the US and China. Its size is
equivalent to that of Mexico five times over and India three times over. In addition, UK is 1/40th
of the size of Canada while South cover is 1/100th the size. The southeast of Canada, near the St.
Lawrence River and the Great Lakes, is where most of the country's industrial activity takes
place. Here, the climate is similar to that of the states nearby in the United States. To the
northeast are the Appalachian Mountains of southern Quebec, the Maritime Provinces, and the
Island of Newfoundland.
The most significant geographical feature of Canada is The Shield, a rough region of pre-
Cambrian granite that surrounds Hudson Bay and takes up most of eastern and central Canada, or
nearly half the country. This semi-arid area and the Arctic Archipelago to the north are sparsely
populated and, as of now, largely underdeveloped. Another separate geographical area is the
Canadian Prairie, which continues the Great Plains in the middle of the continent. This area lies
between the Canadian Rockies and the westernmost point of the Shield. It is Canada's
breadbasket and an area with a wealth of natural resources, including gas, oil, and other minerals.
Far Western Canada, which is peppered with impressive mountain ranges, is where the majority
of British Columbia is located. On Vancouver Island and the temperate southwest coast, the
majority of people live.

Figure: Map of Canada

CLIMATE
Due to its extensive latitude, Canada has a wide variety of climates. Climate is significantly
influenced by ocean currents, particularly the warm waters of the Gulf Stream in the Atlantic and
the Alaska Current in the Pacific. The predominant air currents in the Pacific bring heavy
precipitation and temperate winter and summer temperatures to coastal British Columbia.
Southern Ontario and Quebec get milder weather because to the Great Lakes. The cold Labrador
Current and Gulf Stream collide around the coast of Newfoundland and Labrador, chilling the air
and frequently generating fog. The northern two-thirds of the nation experience short, mild
summers and extremely frigid winters, similar to northern Scandinavia. With extremely frigid
winters, scorching summers, and little precipitation, the central southern interior plains feature a
typical continental climate. Southern Ontario and Quebec experience hot, muggy summers and
chilly, snowy winters, which is similar to some regions of the American Midwest. Canada's
entire country, with the exception of its west coast, has a winter season marked by consistently
falling snow and average temperatures below freezing.

CURRENCY
The official currency of Canada is the Canadian Dollar (CAD). In 1871, the Canadian dollar
took place of various currencies by the federal governing body, passing the Uniform Currency
Act. Canada has been repeatedly alternating between pegging the CAD to the USD (United
States Dollar) and letting it float freely. However, after 1970, the Canadian Government decided
to let it freely float. The Bank of Canada currently circulates banknotes of 5 CAD, 10 CAD, 20
CAD, 50 CAD, and 100 CAD and coins of 5 cents, 10 cents, 25 cents, 50 cents, 1 CAD, and 2
CAD. In August of 2022, 1 USD can be converted to 1.28 CAD while 1 CAD can be converted
to 0.78 USD. All paper money is printed by the Bank of Canada. Each bill is the same size, but
each one is a different color.

Bills Color of the bill

CAD
5.00 blue

CAD
10.00 purple

CAD
20.00 green

CAD
50.00 red
CAD
100.00 Brown
Figure: The most common paper bills

PEOPLE OF CANADA

Ethnic groups

Canada has a highly diverse population consisting of a large variety of races, nationalities,
cultures, and heritage. This has earned Canada the title of a “multicultural country”. In fact, in
1971 Canada was the first of many countries to openly embrace multiculturism. Originally, the
regions of Canada were occupied by indigenous people before the 17th and 18th centuries, when
colonization began by the British and French. Over time, immigration from countries across the
globe brought new cultures, languages, and religions. In 1982, a Charter of Rights and Freedoms
was also constructed by Pire Elliot Trudeau, the then Prime Minister of Canada. The aim of this
Charter was to protect the culture and rights of ethnic groups.
During a national survey, it was found that there are over two hundred ethnic groups in Canada,
13 of which have over 1 million people among them. Currently, over 26% of the total Canadian
population consists of immigrants, which is one of the highest percentages of immigrants in the
total population in the G8 countries. In addition, the majority of the ethnic minority groups in
Canada consist of East Asians, South Asians, Aboriginals, and Black and Southeast Asians as
shown in the chart below.
Figure: The distribution of minority groups within Canada

Demography

The population in Canada is approximately 38 million in 2022 and has been steadily increasing
as a great number of people from across the globe migrate to Canada annually. By 2050, the
population has been projected to expand to 50 million as the birth rates and death rates are 10.21
and 8.08 each indicating that more people are being born than dying. The infant mortality and
maternal mortality are also low standing at 4.44 deaths and 1 death per 1000 live births. There
are 98.58 males per female in Canada making the percentage males and females be 48.64% and
50.36% respectively. In addition, the life expectancy for the population is 83.62 years but
females have a higher life expectancy than the males do. There are 5 age groups that the
Canadian population can be divided into: 0-14 years: 15.99%, 15-24 years: 11.14%, 25-54 years:
39.81%, 55-64 years: 14.08% and 65 years and over: 18.98%. Additionally, the median age is
41.8 years. The biggest age group in Canada is the 25-54 years of age and is probably the part of
the working population in Canada.
Figure: Percentages of age groups in Canada

Language

Canada has two official languages which are English and French. However, in a 2016 census of
population, it was found out that the Canadian population utilizes 200+ languages in their
everyday lives. This can be contributed to the large variety of ethnic groups found among the
population. Approximately 20% of the people in Canada are at least bilingual. Despite English
and French being the official languages, 75% of the population speaks in other languages.

Religion

Canada is a country that has no official religion which allows its citizens the freedom to choose
and practice their own religious beliefs. In 2019, it discovered that approximately 70% of the
population practiced a religion of which 63% were Christians. Other religious groups included
Sikh, Muslim, Jewish, Hindu, Buddhist and many more. The people in Canada believe in
tolerance and harmony among its numerous religious groups. Hence, it has allowed them all to
co-exist in peace.
Figure: Percentages of religious groups in Canada

PESTLE

Political

The government of Canada has a parliamentary democracy system as well as a constitutional

monarchy system. In addition, Canada maintains a strong diplomatic relationship with the UK,
USA, China, France, etc. This strong bond with many countries has greatly benefited the country
in terms of cheaper tariffs and easier regulations when doing business with foreign companies
and investors. Currently, the prime Minister is Justin Trudeau who has been in office since 2013.
He has sustained a friendly rapport with Joe Biden, the president of USA. The close bond
between the two leaders makes investing in Canada more politically stable than other countries.
Additionally, the political stability in the country makes it a safe political environment for both
tourism and businesses. 

Economic

Canada's economy is considered one of the top ten economies in the world. It was one of the
founders of United Nations (UN) and is also a members of the World Trade Organization
(WTO), Organization for Economic Co-operation and Development (OECD), etc. It also
established the North American Free Trade Agreement (NAFTA) which means that Canada has
free trade agreements with neighboring countries which includes the USA. 

The mixed economy system of Canada allows private companies to thrive in their respective
businesses without the interference from the government. Moreover, the annual GDP of Canada
was 1643 billion USD in 2020 and is projected to reach 1740 billion USD by the end of 2022.
Additionally their GDP per Capita of Canada Gross National (GNI) Income in 2020 was 43,241
USD and 1.805 trillion USD respectively. In 2020, during the nationwide Covid-19 lockdowns,
the country's economy had to go through a challenging period as its unemployment rate had
reached 13.5%. However, the economy made a steady recovery once the vaccines were
administered to the civilians and the lockdowns ceased. 
 Sociological

Canada is considered as the world's 2nd largest county covering 6.7% (9,879,750 km²) of the
world’s landmass losing only to Russia which covers 11.50% (9,879,750 km²). However, despite
the large area, its population is small in comparison consisting only of 38 million people which is
only approximately 0.5% of the world’s total population resulting in a high GDP per capita. This
has led to the people in Canada having higher disposable income and thus, the living standards of
Canadians are very high. Therefore, they demand higher quality products and services from
companies relative to people in other counties. However, due to immigration, the population size
has been steadily increasing over the years and is projected to increase to 50 million by 2050.
Their population is also very diverse consisting of a large variety of cultures, ethnicities,
religions, etc. who have managed to co-exist in harmony. The Gini coefficient scale, a tool
utilized to measure the spread of income in a country, was 33.3 in 2017 which indicates that
there is adequate equality in Canada.

Figure: 10 Largest countries by % of Earth’s Land Area

Technological

Canada is a country that fully embraces technological innovations and growth. Its population has
been using the internet and electronic devices in both their professional and personal lives. This
is making the technological sector one of the fastest growing sectors for them. Therefore, the
interest in investing in Information Technology and related industries has been growing. The
stable political environment and free trade policies due to NAFTA have made Canada a safe
haven for tech entrepreneurs and companies to start in or expand their businesses to. 

Environmental

Canada has been endeavoring to tackle environmental issues such as pollution and climate
change. For example, Justin Trudeau, the Prime Minister of Canada has plans to reduce carbon
emissions to zero by 2050. A survey found that a vast portion of the Canadian population has
concerns about the climate change and what it could mean for their future. In addition, clean
energy is growing in popularity as it is thought of as a suitable alternative to fuel energy.
Moreover, Canada is also worried about conserving biodiversity as it has 10% and 25% of the
world’s forest and wetland respectively. However, over the last few years, the number of species
in Canada has been rapidly decreasing due to environmental issues. These issues can be man-
made such as cutting trees for urbanization or water pollution or it can be natural such as
wildfires or pest infestation. The biodiversity in Canada is essential for the country’s economy as
it generates jobs via tourism.

Legal

Canada is a country that has strict laws and regulations that ensure the rights and safety of its
working citizens. Such regulations include maternity leaves, vacation leaves, working hours, etc.
Furthermore, the country prohibits any mistreatment due to anyone's race, religion, skin color,
etc. in the workplace. The minimum wage law in Canada dictates that the minimum wage is
$15.5 per hour. In addition,

Political affiliation of America with Canada

The political affiliation of the USA and Canada has always been one of the best. This can be
mainly contributed to them having deeply layered economic ties. They are both members of the
North American Free Trade Agreement (NAFTA) leading to them having free trade agreement.
Furthermore, they are also members of numerous multinational institutions such as the World
Trade Organization, United Nations, North Atlantic Treaty Organization, and Organization for
Economic Co-operation and Development. Their long history of cooperation has provided jobs
to millions of workers in both countries. Moreover, they have worked synchronically to
implement border controls, foreign policies, bilateral trade, energy security, etc. In fact, USA and
Canada have a geographical advantage when it comes to deepening their political ties as they
share the world’s longest border. This border has made trading and migrating for work between
the counties easily feasible. In 2020, due to the pandemic, the two counties worked together to
control their borders to stop the spread of the coronavirus, and only people who are vaccinated or
are transporting essential products cross through. Furthermore, the President of the USA, Joe
Biden, and the Prime Minister of Canada, Justin Trudeau initiated a project in 2021, aiming to
improve the environment and economy of both counties. They intend to do so by constructing
and following a roadmap for the renewed USA-Canada Partnership. Furthermore, they intend to
guard democracy by being an ally with Ukraine and face the aggressive attacks of Russian on
Ukraine.

SWOT ANALYSIS
Strenths
         High growth industry in Canada
         Canada has a stable government
         Requires no licensing or registration
         Low-cost ownership of e-bikes
         Easy to drive
         It has a regenerative energy system.
Opportunities
         Encouraged sector by the government of Canada
         Rising rate of fuel cost is very high
         Requires a very low maintenance
         Permitted in eight providences in Canada
Weaknesses
         High labor wage
         Global shortage of chipsets.
         Changing the battery is a bit expensive.
         Not suitable for long distance travel
Threats
         Other technologies. Example: Hybrids, Hydrogen fueled vehicles.
         Indirectly harms the environment
         There may be lack of bike lanes

COUNTRY CULTURE COMMUNICATION INFORMATION

Canada is known as a bilingual country, English and French are spoken and written as their
national languages. Statistically total of 22.8% of people speak only French, 75.4% English, and
17.9% both (Heritage, n.d.). English speakers are known as Anglophones, and French speakers
are known as “Francophones”. Their pattern of communication is slightly different from each
other. Compared to Francophones, Anglophones are more polite and reserved.

Verbal Communication:    As we know Canadian people are considered one of the politest and
peace-loving people around the world, they always try to avoid conflict so relatively they are
diplomatic or tactful communicators. They carefully choose their word to remain polite, but that
doesn’t indicate that their indirect style of communication deciphers others. Their way of
speaking is clear enough to convey their message directly and easy to interpret. They are direct
but respectful. (Canadian Culture- Culture Atlas, n.d.)

Area and Formality: Generally interrupting people when they are speaking is considered rude
behavior, and Canadians do not appreciate this sort of behavior. (Canadian Culture- Culture
Atlas, n.d.) They tend to communicate without any obligation, that's the reason they use more
formal and polite sentences for example, “would you mind?” or “I was wondering if you
could?”. This gives people the right to choose an answer as opposed to being forced into one.
(Vulture, n.d.)

Variety in dialect: Just like other languages, Canadian English also has a range of dialects. The
Cultures of different regions of this country have a great influence on the language over time.
There is a total of 8 different dialects in Canada. And they are Aboriginal Canadian English,
Cape Breton English, Quebec English, and 5 others. (What Is Canadian English? - WorldAtlas,
2018)
 Non-verbal communication: - 

Eye contact: - Here people often make eye contact to show sincerity, but don't hold it for a
longer period. It seems to scrutinize. That means eye contact should be direct and broken
intermittently. Reluctance to not make any eye contact during a conversation is identified as
boredom and dishonesty. 

Physical contact: Canadian people are more likely to maintain a distance and not touch each
other that much. They are in general not so tactile with people they are not close to enough, but
close or good friends may hug each other. More important if any man comes in physical contact
with any woman more than usual that’s considered sexual harassment. 

Personal space: - Canadian people appreciate people who respect their personal space and don't
try to invade it. They maintain arm’s length distance between themselves. 

Gestures: In conversations, Canadians tend not to gesture much. Still, most prefer to chat with
the people who make them, as it gives the impression that the people who make them are very
interested in conservation. Other than that, there are some bad gestures that people don’t like, for
example, an elbow perched on the table while eating. 

Pointing: - It is a bad gesture and considered rude and a form of leering to point at one. You can
point using your index finger, but be careful not to do it at other people

 Punctuality: People around this country highly value punctuality. It is always a wise decision to
arrive 10 to 15 minutes early for any meeting. For business culture, punctuality is the top
priority.

Body language and appearance: For any kind of business meeting and meals the dress code is
always preferred to be conservative and well dressed. Dressing code sometimes depends on the
weather. And it is most preferable to not wear any kind of scent that can trigger asthma or
allergies, as this is common among Canadians. To express your excitement for joy do not use the
“V” sign, it is considered a serious offense.  

Mannerism: According to Canadian tradition, business gifts are given after the close of a
transaction. They are usually unboxed immediately and visible to everyone. The best choice is a
gift that represents the culture and beauty of your home town or offers a traditional meal. And if
you decide to give flowers, it will be a wise decision not to choose white lilies, as they are
associated with funerals. Also, avoid red roses; they are reserved for more romantic settings.

DECISION-MAKING, PROBLEM-SOLVING, AND NEGOTIATION  

 Negotiating individuals or groups may conduct negotiations in Canada. 

 When negotiating with a group of Canadians, a well-aligned team with clearly defined
roles can be quite effective.
 Meetings must be scheduled in advance.
 Although the exchange of business cards is not required, it is best to bring a sufficient
supply.
 Give your business card to everyone in the room.
 It is advantageous to include both French and English translations on your business card.
 While getting to know each other is one goal of the first meeting, the primary focus will
be on business topics.
 Smaller transactions may be decided and finalized during the first meeting.
 Negotiating is typically viewed as a collaborative problem-solving process by Canadians.
 While there may be disagreements during the negotiation process, you should maintain a
positive attitude and demonstrate a willingness to collaborate with the opposing party to
reach an agreement.
 They may reveal a lot of information to gain trust. They prefer information that is concise
and to the point.
 Negotiations in Canada are frequently rushed. In general, Canadians prefer a
monochronic work style.
 When confronted with rigid behavior, avoid displaying irritation or anger; instead, be
willing to bargain over some items individually. Otherwise, clearly state that your
agreement is conditional and subject to other factors.
 Canadians dislike haggling and do not enjoy bargaining. So, state your position clearly
and be prepared to advocate for it as needed.
 Canadian negotiators may take firm positions at the start of the bargaining process. They
may be more willing to make concessions if you convince them that you intend to hold
your own.
 Most people in this country expect negotiations to be conducted "in good faith." Do not
deceive or otherwise mislead your counterparts, as this can harm or even destroy business
relationships.
 When attempting to create time pressure while explaining your offer, exercise caution.
When negotiating with Canadians, avoid using aggressive tactics.
  Starting with an extreme offer may be perceived as unfriendly.

COMPETITIVE ANALYSIS 

Canada is a mixed market economy country. A mixed Market economy country allows
independent participation in production which creates healthy competition in the market. In
Canada, E-bike is an emerging industry but it hasn't been well established yet. There some
popular E-bikes companies exists in Canada. Among them, these three are more popular. So, we
are considering them as our direct competitors.

Rad Power Bikes Trek Bikes Biktrix Electric Bikes

Raven E-bikes will directly compete with these brands. These are quite popular E-bikes in
Canada. Maximum of their E-bikes are manufactured with Li-on (Lithium Ion) batteries
which are not quite durable and are harmful to the environment. In our brand “Raven” we use
solar energy using solar panels in our E-bikes. In addition, we will use Alkaline batteries which
are more long-lasting than lithium-ion batteries and they are easy to dispose of, and are better for
the environment. Also, our competitors set their price between (2000-5000) Canadian
dollars, but we availed our base model E-bike at 1624 CAD. So, we are the cost leader in this
segment. We are hoping these two features of us will help the company to dominate the E-
bike industry in Canada.
 Market Segmentation

Geographic All over the Canada

Area

Age
25-55
Demographic

Gender Male, female and others

Marital Status Both Married and unmarried
Demographic Occupation Retired persons, Job Holders,
Businessman, Students, and
Behavioral Sportspersons.
Education People with all kind of
education level
Income 1,000 CAD -50,000 CAD
Usage
Heavy, Medium and Low
User status Occasional and Regular
Behavioral
Loyalty Status Medium, Low
Psychographic
Personality Introvert, Ambient and
Extrovert

Lifestyle Adventurous,
Psychographic Style enthusiast,
Trendy, Travellers
 Target Market Analysis

By analyzing the customers, we have set a standard to identify our potential market. Our primary
market is the people aged between 44-55. People of this age are more interested in E-Bikes.

Our secondary market is the young people aged between the ages of 25-44. These people are
mainly devoted to cycles as they can be bought at a cheaper price. We are targeting people
whose income is between 1,000 CAD to 50,000 CAD. We also are focusing on people who are
more adventurous, style enthusiasts, and love to travel. Moreover, we will also aim for people
who care for the environment or are attempting to save money on transport costs, given the rising
gas prices.

Market Positioning

We will introduce our Raven E-bikes to the Canadian people. ‘’Ride Smoothly, Live
healthily.’’ We will use this tagline which promotes the benefits of using Raven E-bikes. We
will influence the customer perception regarding our brand by implementing the benefits of
health and positive impacts on the environment of Raven E-bikes. Raven E-bikes utilize solar
energy and so don’t emit greenhouse gas, in the same way, the four-wheeled vehicles running on
fuel do. It will drive customers to move from four-wheeled vehicles to two-wheeled E-bikes. It
also provides several health benefits which is a key point for customers to think about adopting
E-bikes.

Marketing Mix

Product

Our product is the Raven E-bike which utilizes solar energy to run the motor instead of running
on fuel that is harmful to the environment. In addition, it has a battery system that acts as a
backup for when they do not have access to sunlight. The motor powers the motor which propels
the cycle to move forward. To prevent excessive speed, it has a sensor which is helpful to avoid
accidents. Our E-bikes come in 4 different colours; Black, Green, Yellow and Red.
In our store, we will also sell the necessary accessories that a rider needs. We have helmet,
saddles, tires, etc.

Pricing

Our E-bikes’ price will start from 1600 CAD which is much lower than our other competitors.
Pricing is a key factor to grab the attention of customers. In order to capture the Canadian
market, we are setting the price low. We will also have some discount offers on New Year,
Christmas day, and Easter Sunday.

Place

We will use both online and offline platforms to sell our products. We will mainly focus on the
three biggest cities in Canada; Toronto, Montreal, and Vancouver. We will have total of 115
showrooms in 58 different cities in Canada. Customers can directly buy from these outlets. We
will launch a website of MDO Inc. from where customers can buy our cycles online. We will
also have an app that will be used for online ordering. In the parts of Canada where we won't be
able to set up our outlets, people from that parts can still enjoy our services through online
ordering.

Promotion

SALES PROMOTION
A limited time offer will be available of our products after successful expansion into Canadian
Market. A limited time offer is very beneficial to boost a product’s sale. We will avail a 30%
discount offer of our products for first 5 weeks.
Don’t miss the opportunity to pay less and buy more

STAFFING

Staffing is an important component for organisational development. According to Labour Force

Survey, (2022) Unemployment rate of Canada is 4.9%. The labour market of Canada is very
employed friendly. So, we will need to make shrewd HR policy to hire and manage the right
employees.

RECRUITMENT

Mdo.inc will post their job advertisement through social media, Newspaper, LinkedIn and other
Job websites. We will also take necessary help from HR consultancy firm in order to find the
proficient candidate for Mdo.inc. In Canada, many universities arrange job replacement program.
So, we will make a contract with them to find right candidates for our company.

SELECTION PROCESS
Selection is the process to choose the right candidate from the applicants. We will use several
efficient tools to find out a competent candidate. Some of these are:
  Application form
We will provide application forms through our websites. The interested candidate will
directly apply through this form where they will put all the necessary information about
their academics, co-curricular activities, skills, and work experiences.
 Investigation of candidate’s background
After getting responses, our HR team will conduct a background investigation. Where
they will check if the person has many criminal records. They will also investigate about
their previous job experience, academic image, social media activity, and other necessary
criteria. Any negative image of the candidate will be considered disqualified from the
selection process
 Personality test
In a personality test candidate’s personality test will be measured to check if the person is
competent enough to handle the critical situations that He or she will need to face when
they will be employed in MDO.inc.
 Intelligence test:
Candidates need to sit for an IQ test. The test is required to test the candidate’s
Intelligence level. The successful completion of this test is the requirement for attending
the final interview.
 Final interview
A final interview will be conducted. Successful completion of this interview round will
make eligible candidates join as core workers of the company.

In Canada, the government is constantly working for making the workplaces employee friendly.
In order to do that, the government has set some specific rules and standards, which are different
from the U.S.A. We need to consider some of the specific things to avoid legal complications:

TERMINATION OF EMPLOYEES
In the U.S employer can fire any employee without giving him prior notice. But things are
different in Canada. In Canada, an employer must need to give proper notice to the employee
before dismissing him and the notice should consist of the reason for termination.

LEGALIZATION OF MARIJUANA
The Canadian government has legalized marijuana. It is legal to consume marijuana in Canada
for people aged above 18. Adults can consume up to 30grams of cannabis (Federal legislation,
2018). The supreme court of Canada has also ordered that no organization can conduct any usual
drug tests while recruiting employees. This makes a huge challenge for employers to get
productive output from the employees.

MINIMUM WAGE
The minimum wage rate in Canada is 15.5 CAD per hour. Any discrimination in wages could
result in legal complications for the organizations. It will be difficult to some extent for MDO.inc
to pay 15.5 CAD per hour to its all blue-collar employees. We have to make a stable payroll
system to adjust this high wage rate.

ADVERTISING POLICY
Canada has some specific advertising policies which cannot be overlooked. Consumer Protection
Act (CPSA) has set some specific rules that brands need to follow. These policies are made to
protect consumers from any kind of falsification and misguidance regarding products. Some of
the rules of CPSA we need to consider are:

• Advertisements must not contain inaccurate statements, illustrations or representations.

• Advertisements must not exclude necessary information in order to misguide consumers.
• Advertisements must not contain deceptive prices or discounts.
• advertisements must not contain products that are prohibited in the minor case which may
lead to underage consumers purchasing them.
• Advertisement must display any discrimination based on gender, race, or religion.
• Advertisements must not offer any guarantee or warranty unless it is descriptively
explained with the information of the guarantor or warrantor.
• Advertisement must not copy or imitate content from other brands.
• Advertisement must not defame other brands.

ADVERTISING
We will use launch tv commercials which will be shown in Canadian TV channels. This will
enable our brand to reach its potential customer in the butterfly stage of entering Canadian
Market.
Our product Raven E-bike will be one of the tools of advertisements. It will hold the logo of
MDO inc. including the website address in its body.
 RAVEN
E-Bikes
Figure: TV commercial of Raven E-bikes

PROMOTIONAL CAMPAIGN

We will conduct several campaigns for environmental wellbeing. We will promote the
effectiveness of E-bikes to reduce ecological footprint through the campaigns. The people of
Canada are concerned about environmental issues and are interested in using more non-
greenhouse gas emitting and renewable energy sources. This will be a whip hand for us to grab
the attention of our targeted customers.

APP
An app will be introduced for Raven E-bikes, after entering the Canadian market. From the app,
the customers will be able to order Raven E-bikes online. The app will be consisting of all the
necessary information about our products, the function of the products, and the stores. The app
will also offer some additional features. Using the app customers will be able to get updates
about weather changes, and to see the map and routes.

SOCIAL MEDIA
We will promote our Raven E-bikes by creating a page on Facebook and Instagram. Social
media is a significant platform in the 21st century to promote any kind of Business. It is so
beneficial to reach the maximum number of people through Social Media.

NEWSPAPER
Around 60% people of the total Canadian Population read newspapers every day and most of
them are aged above 40. Since our primary market is people of 40+ years old, newspaper
marketing will a great promotional tool for us. We will promote our Raven E-bikes by posting
advertisements in Newspapers.

BILLBOARD MARKETING

We will use billboards, holding our brand’s advertisements, in the busy areas. A billboard is a
famous tool of marketing and it is very popular in Canada. According to Corporate Sign Inc.,
(2018)1% of Canadian people regularly read billboards while driving,56% people posted funny
pictures of billboards on social media and 58% of people bought products after seeing the
advertisement on billboards.
Figure: Billboard in a Canadian Road

Computation of cost and sales price of product

Materials Cost (CAD)
Electic motor 400
Battery 400
Throttle 12
Brake system 18
Tires 40
Lights and reflectors 12
Display 80
Solar panel 180
Miscellenuos 50
Variable manufacturing cost per unit 1,192

Labor Wages per hour (CAD) working hours per day working days in a year number of workers Cost (CAD)
16 8 260 100 3328000

Factory rent square feet cost per square feet (CAD)

200,000 0.85 2040000

Supervisors Salary per year (CAD) Number of supervisors

44000 8 352000
Total fixed cost 5720000
Materials Cost (CAD)
Variable manufacturing cost per unit 1,192
units sold 100,000
Total variable manufacturing cost 119,200,000
Total fixed manufacturing cost 5,720,000
Total cost 124,920,000
Total cost per unit 1,249
Gross margin (30%) 375
Sales price 1,624

Pro-forma Income Statement

Year 2022 2023 2024
Revenue 162,396,000 178,635,600.0 196,499,160.0
COGS (124,920,000) (137,412,000) (151,153,200)
Gross income 37,476,000 41,223,600 45,345,960
Operating costs:
Research and Developement 100,000 110,000 121,000
Design 70,000 77,000 84,700
Salaries 1,000,000 1,100,000 1,210,000
Marketing 1,000,000 1,100,000 1,210,000
Distribution 1,000,000 1,100,000 1,210,000
Customer Service cost 150,000 165,000 181,500
Ware house rent 3,000,000 3,300,000 3,630,000
Utilities 50,000 55,000 60,500
Other 30,000 33,000 36,300
Total operating costs (6,400,000) (7,040,000) (7,744,000)
Operating income 31,076,000 34,183,600 37,601,960
Tax expenses (26.5%) (8,235,140) (9,058,654) (9,964,519)
Net Income 22,840,860 25,124,946 27,637,441

Growth: We expect a 10% of our business every year as the demand of e-bikes in Canada is
increasing overtime. Moreover, the recent gas price hikes and concerns about climate change in
Canada will motivate more Canadians to shift to Raven E-bikes.

CHALLENGES
There are some challenges that MDO INC will need to face when expanding. Firstly, the
minimum wage of Canada is relatively high, starting at 15.5 CAD. This will greatly increase the
costs of manufacturing. Moreover, the consumers of Canada expect high-quality products and
services relative to people of other countries. Furthermore, the weather in Canada can be heavily
detrimental to our company. During monsoon, the sky will be cloudy which makes it hard for our
E-bike to gain solar energy. In addition, there are numerous competitors in Canada such as other
E-bike companies, bicycles, and many other modes of transport. In addition, the lack of bike
lanes in certain areas may hamper our sales in those areas.

RECOMMENDATIONS
Canada is the 8th wealthiest country in the world. Their population is highly diverse in terms of
ethnicities, religion, language, etc. so they would be more welcoming to foreign companies
entering the market. The political climate of the country is also stable and the political affiliation
with US is good so American businesses can easily set up businesses there. Moreover, their
population has a high GDP per capita leading to them having a higher disposable income to
spend on non-necessity items. Another positive factor for MDO Inc. is that the Canadian
government and people would be more willing to adopt solar energy for the Raven E-bike due to
the environmental issues caused by climate change and the rise in gas prices caused by the
Russian war with Ukraine. Furthermore, the deep trading relationship the US has with Canada
due to NAFTA makes it so MDO Inc. can easily sustain trade relations there. In addition, the
customs and communication culture of Canadians are relatively similar to that of the US so
communication and negotiations between the people of these two nations are relatively easier
and more convenient. Therefore, we would recommend that MDO Inc. expand its business to
Canada.

CONCLUSION:
Canada has a diverse and rich culture. And many of its citizens are among the most modest in the
world. Given the political and technological backing it has, the Raven e-bike has a good chance
of succeeding in this industry and generating a significant amount of revenue. The attitude of
Canadians toward high-quality goods and services is more positive. Despite having some fierce
rivals in the market, they still have some benefits. because consumers are more interested in eco-
friendly items now. MDO can therefore anticipate having a sizable market share. Thus, we can
conclude that MDO Inc. made the right choice in deciding to introduce the Raven e-bike in
Canada. Furthermore, they can readily grow their company internationally.
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