Deliveroo Expansion Strategy in Canada: Market Analysis, Objectives, and Entry Plan

Situation

Political

Canada is a democratic nation with a functioning parliamentary system and a constitutional monarchy. It maintains cordial ties with the USA, the world’s most powerful nation (Macdonald, 2019), and solid ties with the UK, France, and many other nations worldwide. The country is politically stable and, in fact, among the safest nations in the world. Canada is a good location for business and tourism due to its low crime rate and reliable law enforcement.

Economic

Canada has one of the top ten economies in the world. It belongs to the Commonwealth of Nations, the World Trade Organization, the G20, and other organizations (Picot & Ostrovsky, 2021). Additionally, Canada has free trade agreements with other nations. Canada attracts the interest of investors and enterprises worldwide due to its robust and dynamic economy, varied and enterprising population, world-class infrastructure, and one of the greatest financial systems in the world.

Technological

One of the fastest-growing industries in the country is technology. Canadians’ three most common uses of technology are for education, careers, and leisure. Additionally, the IT industry offers high-paying jobs to people. Public and private investment in Canada’s technology sector is rapidly increasing (Picot & Ostrovsky, 2021). Moreover, the state has become a rich field for entrepreneurial progress due to political, economic, and social stability.

Sociological

Over the past four decades, population growth has been relatively constant, showing no signs of slowing down. In Canada, there is a severe lack of skilled personnel in several industries, and many business owners claim that this lack is impeding the expansion of their firms (Picot & Ostrovsky, 2021). With a flexible immigration system and population development, the government is addressing this issue. People with the necessary qualifications and experience can apply to immigrate to Canada, which encourages immigration.

Legal

In Canada, laws are in place to protect specific employee rights. Employers must adhere to certain minimal criteria for the number of hours employees work, the minimum wage, sick days, vacation days, and many other things. Discrimination against individuals based on gender, color, ethnicity, age, or any other factor is illegal under the Canadian Human Rights Act (CHRA).

In Canada, there are numerous ways to conduct business. For instance, the most typical ones are branch plant operations, companies, joint ventures, general or limited partnerships, trusts, single proprietorships, and co-operatives. Corporations are the most common type of entrance into Canada for foreign enterprises.

Environmental

Every year, millions of tourists travel to Canada to enjoy its scenic splendor. However, Canada is currently dealing with a variety of environmental concerns. For instance, Canadians are being impacted by various air pollutants, acid rain, smog, and climate change. In fact, many Canadians consider air pollution to be a serious environmental issue. However, it is essential to note that the Canadian government has taken several steps to reduce climate change, which causes greenhouse gas emissions and air pollution.

Objectives

  • Successfully expand Deliveroo in Canada.
  • Ensure the best customer experience with our services.
  • Provide training and support for our new employees.
  • Use a CRM system and report monthly sales.
  • Be the leading delivery service in the country.

SMART Objectives

  • Specific: Enter the Canadian market in 2022.
  • Measurable: Acquire 10% of the market share at the start.
  • Attainable: Improve performance due to the 10% increase in new clients.
  • Relevant: Increase revenue to create the basis for future growth.
  • Time-based: Start successful expansion in 2022 and continue in 2023.

The SMART objectives are linked to Deliveroo’s primary goal. It is vital to enter the Canadian market in 2022 and acquire 10% of its share initially. Moreover, performance must be enhanced due to the planned 10% increase in new clients. Another relevant objective is creating the basis for future growth due to increased revenue. The expansion should start in 2022 and continue in 2023.

Hofstede Cultural Dimensions

Table 1 – Comparison of Canada’s and the United Kingdom’s Cultural Dimensions

Dimension Canada United Kingdom
Power distance 39 35
Individualism 80 89
Masculinity 52 66
Uncertainty avoidance 48 35
Long-term orientation 36 51
Indulgence 68 69

Comparing Hofstede’s cultural dimensions of Canada and the United Kingdom, it is possible to admit a slight difference. Countries’ cultures are similar because they have the same roots and belong to the Western group. The difference constitutes around 3-9 points maximum, which is insignificant (Compare countries, 2022). This means that the potential entry into the Canadian market will be less complicated because of the lack of necessity to adapt to radically new conditions. At the same time, the simplicity of cultures reduces the risk of conflicts and failures, which is also vital for enhanced outcomes.

Strategy

Porter’s Generic Strategy

The goal of differentiation is to make the company’s goods and services more distinctive and alluring than its rivals. The specifics of the industry and the products and services will determine how the company accomplishes this. Still, it usually involves providing features, functionality, durability, support, and a brand image that the customers appreciate (Lauer,2019). When pursuing a differentiation strategy, large firms must maintain agility in their new product development procedures (Drahokoupil & Piasna, 2019). Otherwise, they risk being attacked from multiple angles by rivals using Focus Differentiation methods across various market niches.

Ansoff Matrix

The market penetration quadrant of the Ansoff matrix aids you in formulating plans for utilizing aggressive distribution and promotion to sell more of your current goods and services to your current clientele (Ansoff et al., 2019). The company uses this technique to enhance its market share in the present market environment (Bala & Verma, 2018). This tactic entails increasing sales to existing and potential clients who can be considered in the same market. One significant restriction is that nothing in the company’s effort to increase market share may jeopardize its success. It is essential to understand what has contributed to the product’s success thus far and to ensure that nothing the company does will change that.

Tactics

Customers would place orders online and receive their food on time. Offices for delivery men would ensure the management of the food delivery process and regulate internal activities. Delivery would be affordable, and the price would be elastic as it changed according to the price of competitors in the market. Deliveroo’s rapid expansion is due to its essential partners. The core idea behind Deliveroo is to give domestic and local users specialized listings of top-notch private restaurants in such regions or jurisdictions (Timko & van Melik, 2021).

The introduction stage could be the most expensive for a business introducing a new product. Because there is a tiny market for the product, sales are low but are expected to rise (Shenker, 2021). On the other hand, if the market is competitive and the product needs to be launched, costs for things like research and development, customer testing, and marketing might be very costly (Ungerman et al.,2018). Conventional marketing methods, like advertising, are better for promotion. However, advertisements would be placed on social media, so digital marketing is critical in this context.

Table 2– Adapting Marketing Mix to Product Internationalization

Standardization Adaptation Glocalisation
Product A standard of high quality is used Local clients’ needs will be considered Global products will be adapted to current needs
Promotion Social media will be used Local media will be employed Global websites will be employed
Price Flexible price Price will be established regarding competitors Global pricing will be combined with local needs
Place High speed of delivery Local top-notch restaurants Food places, offices, online services

In such a way, the strategy will imply creating standard and effective practices, such as guaranteeing high-quality products to meet local clients’ needs. For this reason, offerings will be adapted to their requests. For promotion, local media, such as social and global media, will be employed to acquire the desired result. The price will be flexible and established based on the competitor’s strategy. Finally, high-speed delivery will be offered to clients who want to order food from top-notch restaurants and other places.

References

Ali, B. J., & Anwar, G. (2021). ‘Porter’s Generic Competitive Strategies and its influence on the Competitive Advantage.’ International Journal of Advanced Engineering, Management and Science, 7(6), pp. 42-51.

Ansoff, H. I., Kipley, D., Lewis, A. O., Helm-Stevens, R., & Ansoff, R. (2019). ‘Why Make Strategy Explicit?.’ In Implanting Strategic Management (pp. 17-23). Palgrave Macmillan, Cham.

Bala, M., & Verma, D. (2018). ‘A critical review of digital marketing.’ Journal of Management, IT & Engineering, 8(10), pp. 321-339.

Compare countries (2022). Web.

Drahokoupil, J., & Piasna, A. (2019). ‘Work in the platform economy: Deliveroo riders in Belgium and the SMart arrangement.’ ETUI Research Paper-Working Paper.

Macdonald, D. (2019). ‘Business and environmental politics in Canada.’ In Business and Environmental Politics in Canada. University of Toronto Press.

Lauer, T. (2019). ‘Generic Strategies, Outpacing and Blue Ocean–Discussing the Validity of Three Strategic Management Theories Using Case Studies from Airlines and Grocery Retail.’ Theory, Methodology, Practice, 15(01), pp. 57-66.

Picot, G., & Ostrovsky, Y. (2021). ‘Immigrant and second-generation entrepreneurs in Canada: An intergenerational comparison of business ownership.’ Economic and Social Reports, Statistics Canada.

Shenker, J. (2021). They’re stealing our customers and we’ve had enough’: Is Deliveroo killing restaurant culture. The Guardian, 25.

Timko, P., & van Melik, R. (2021). ‘Being a Deliveroo rider: practices of platform labor in Nijmegen and Berlin.’ Journal of Contemporary Ethnography, 50(4), pp. 497-523.

Ungerman, O., Dedkova, J., & Gurinova, K. (2018). The impact of marketing innovation on the competitiveness of enterprises in the context of industry 4.0. Journal of Competitiveness, 10(2), p. 132.

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StudyCorgi. "Deliveroo Expansion Strategy in Canada: Market Analysis, Objectives, and Entry Plan." October 4, 2025. https://studycorgi.com/deliveroo-expansion-strategy-in-canada-market-analysis-objectives-and-entry-plan/.

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StudyCorgi. 2025. "Deliveroo Expansion Strategy in Canada: Market Analysis, Objectives, and Entry Plan." October 4, 2025. https://studycorgi.com/deliveroo-expansion-strategy-in-canada-market-analysis-objectives-and-entry-plan/.

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