Muhammad Kublai Khan
June 15th, 2018
Petro-Canada is a retail and wholesale corporation with a network of 1500 gas station outlets across Canada. Our headquarters are located at Calgary, Alberta. The company has a merger with Suncor Energy and has a combined market capitalization of $43.3 billion. Our goal for this year is to expand to Japan, which is the world’s third largest economy with proven oil reserves being essentially zero. Japan is a country, which consumes around 4.5 million oil barrels a day, and virtually every barrel is imported. Petro-Canada sees this as a great opportunity to begin international expansion. We have access to a lot of oil, as Canada has one of the largest proven oil reserves in the world, unlike Japan. Since Japan has barely any oil, and Canada has a surplus, this is expansion will be successful.
Petro-Canada’s partner, Suncor Energy, is also now the main supplier of its products. Suncor produces oil, natural gas, wind-generated electricity, and ethanol. After being refined the specific outputs are bitumen blends, sweet and sour crude oil, diesel, gasoline, jet fuel, asphalt, chemicals, heavy fuel and home heating oils, petroleum coke and sulfur. After Suncor has refined the products, we at Petro-Canada are responsible for managing our network of more than 1500 retail and wholesale outlets across Canada. If you have lived in or visited Canada, it is very likely that you have crossed one of our outlets.
Nature of Expansion
This expansion will turn out to be profitable for Petro-Canada and the economy of Canada, but will also hold an impact on the Japanese people. Japan has been importing oil from all across the world at higher prices, thus their population buys oil at a higher price than most other countries. We at Petro-Canada plan to open numerous gas stations and storage facilities across Japan. Since we produce oil in our own refineries, it is much cheaper for us to refine oil and export it. This would result in a decrease of oil prices in Japan, and Petro-Canada will become one of the largest oil companies operating in Japan.
Petro-Canada is already a developed brand, and is providing 16% of Canada’s consumer oil. The first step to this expansion would be to conduct market research and identify the Japanese market. To adjust to the Japanese ways of marketing, a Japanese sales agent must be hired. This will allow for better marketing and more profits. Once our sales agent does his market research, and reports back to us, we will begin looking for plots and locations all over Japan for our gas stations. We plan to open a head office in Tokyo, which will also include our oil storage facility. This area will be highly secured and only authorized personnel can enter.
Analysis of Competition
Expanding to a country with an economy like Japan’s is never easy. There will be a lot of competition, but we hope that our strategies are successful. Our main competitors will be Shell...