International Marketing: Challenges in Canada's Mining Industry and Market Expansion Strategies
Overview
This coursework assignment addresses three questions in international marketing: Canada's gold mining industry challenges and price determinants, Lululemon's market expansion strategy into China with recommended approaches and risk mitigation, and the influence of cultural factors on pandemic response using Canada as a case study.
What this coursework covers
- Analysis of Canada's gold mining industry including production rankings, regional distribution, and challenges such as price fluctuations, climate change, workforce gaps, and infrastructure deficits
- Lululemon's expansion into China via direct export strategy with discussion of market entry challenges including cultural barriers, local competition, regulatory compliance, and recommended mitigation strategies
- Cultural influence on COVID-19 pandemic response examining Canada's social safety net, universal healthcare, government assistance, and multiculturalism
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International Marketing
Question 1
Canada's mining industry is one of the largest globally, with its gold production being ranked fifth globally as of 2019. In Canada, gold is the most valuable mined mineral. Notably, the largest production of gold happens in Ontario, followed by Quebec among various Canadian provinces (Katta, Kumar & Kumar 118718). In Canada, gold production is mainly done in hard-rock underground and open-pit mines.
The gold mining industry is faced with several challenges that result from several factors. One of the industry's problems is continued price fluctuations, which have resulted from varying global economic situations. Other challenges being experienced include climate change concerns, pressure for mining companies to reduce capital and operation costs, changing demographics have resulted in the inadequate workforce, expensive social license for mining companies, and infrastructure gaps, among others.
The gold industry, especially, price, has significantly been affected by the COVID-19 pandemic. In recent years, the price of gold has significantly depended on the value of the U.S. dollar. In essence, the price of gold is inversely proportional to the value of the dollar. Also, the price of gold is usually determined by the global jewelry demand. For example, in 2019, jewelry accounted for about 50% of gold demand (Katta, Kumar & Kumar 118718). The price of gold also depends on the rate of production in other gold mining countries. In recent years, these are some of the factors which have affected the price of gold.