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In addition, the region in which Ltd is headquartered offers a wide array of untapped resources. Consequently, the resource base in China exceeds that of Canada, hence indicating the large refractory exports from China. However, the importation costs within Canada are lower than that of China due to the superior value of the Canadian dollar and the high costs of domestic products. While at it, the industrial analysis goes further to give a depiction of the transportation mechanisms between the Chinese and Canadian economies. Though both transportation mechanisms are modern, the Chinese economy enjoys a better transport framework.

In China, the cost of transportation is relatively cheap, hence making the export costs lower than those of Canada do. In addition, the advanced transport frameworks are pivotal in championing the efficiency of production and distribution from China to the Canadian economy. The bilateral trade agreements between these countries make it easier to export from China, as the Maritime transport arrangements enable Chinese companies to save on the transportation costs. However, the industry encounters several obstacles within the Canadian market. First, Ltd does not have high technology products.

This is inhibits the company from building a formidable market share within the Canadian refractory industry. Second, Ltd does not have a subsidiary branch in Canada. This increases the production costs, as the company encounters several drawbacks in the implementation of the strategic plans. The lack of a subsidiary plant in Canada is a contributor to the lack of strong communication foundations upon which the organization can connect and subsequently share the latest organizational, market, industrial and economic developments. In the production of refractory fiber, encounters stiff competition mainly from Zibo Tongfa Refractory Insulation Materials Co.

This competitor offers stiff rivalry for the company both in the Local and foreign markets. Consequently, Zibo Tongfa Refractory Insulation Materials Co. , Ltd has a domestic market share of approximately 53%, though it deals in a variety of refractory products. The company has a strong marketing presence, using the internet to attract more

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preview essay on Analysis
  • Pages: 10 (2500 words)
  • Document Type: Essay
  • Subject: Marketing
  • Level: Ph.D.
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