Border Crossings: Doing Business in the US

Vincent di Norcia is an associate professor of philosophy and business
ethics at Laurentian University.

The authors have done a superb job of detailing the problems and
pitfalls facing Canadian firms that seek to move into the U.S. retail
market. Any business considering such a move should read this work.
Ignoring its lessons will likely cost them their investment. Of the 32
transplanted retail operations studied here only 7 are holding steady or
growing.

Penetrating the U.S. market, the authors warn, is not easy. First,
correctly interpreting the target market is an absolute prerequisite for
success; one cannot simply transplant Canadian ways and assumptions into
another country. Second, management must commit adequate resources to
the U.S. venture, which must make its own decisions, have its own goals
(in co-operation with the Canadian parent), learn the market while
operating, and adapt accordingly.

An elite of Canadian firms, like Provigo and Loblaw, can succeed and
have succeeded. The Bombay Company, now a U.S. operation successful in
Canada, was originally a Canadian concept. The book’s description of
its meticulous, careful planning and marketing and competitive smarts
shows what sound business intelligence can achieve.

An indirect lesson of the authors’ analysis is that there are many
opportunities for smart, aggressive Canadians in their own market. As we
slowly drag ourselves out of a recession Canadian businesses should gain
access to the resources needed to improve their domestic performance and
consider moving into the United States and competing with the toughest
businesspeople anywhere. This book is one of the key resources needed.
Don’t leave home without it.