Madison Company is a large manufacturer and distributor of cake supplies. It is based in Chicago (Headquarters) and Trinidad. It sends supplies to firms throughout the United States and the United Kingdom . It markets its supplies through periodic mass mailings of catalogues to those firms. Its clients can make orders over the phone and Madison ships the supplies upon demand. The main competition for Madison’s in the United States comes from one U.S. firm and one Canadian firm. A British firm has a small share of the U.S. market but is at a disadvantage because of its distance. The British firm’s marketing and transportation costs in the U.S. market are relatively high. 1. Madison Company plans to penetrate either the Canadian market or two other Caribbean Countries (Jamaica and Haiti). Explain what factors deserve to be considered in deciding which market is more feasible?

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Madison Company is a large manufacturer and distributor of cake supplies. It is based in Chicago
(Headquarters) and Trinidad. It sends supplies to firms throughout the United States and the United
Kingdom . It markets its supplies through periodic mass mailings of catalogues to those firms. Its
clients can make orders over the phone and Madison ships the supplies upon demand.
The main competition for Madison’s in the United States comes from one U.S. firm and one
Canadian firm. A British firm has a small share of the U.S. market but is at a disadvantage
because of its distance. The British firm’s marketing and transportation costs in the U.S. market
are relatively high.

1. Madison Company plans to penetrate either the Canadian market or two other Caribbean
Countries (Jamaica and Haiti). Explain what factors deserve to be considered in deciding which market is
more feasible?

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