Strategy Analiysis:
Tim Hortons Case Analysis
Competitive advantage test:
- Tim Horton's understanding of the Canadian market aids to maintain its competitive advantage.
- In the USA has brand awareness the is limited to the Northeast and Midwest regions. thus the greater need for a marketing financial resources.
Four Generic Strategies:
- Tim Hortons is adapting a focus low cost strategy.
- This strategy boosted Tim Hortons volume advantage
- Its prices are well placed below market.
Strategic Fit Test:
- In Canada,Tim Hortons presence is significant
- It is logical to invest in expansion, development and renovation programs.
- In the USA investment in advertising, design and consumer relations is an optimum startegy.
Suppliers' Force:
- Supplies are widely available.
- Tim Hortons Implemented vertical integration.
- Centralized manufacturing on site baking.
- Suppliers power is Low.
Strengths:
Force of competitors
Establishing to the end of 1960s:
- Numerous similar businesses.
- There was no product differensiation.
- The Globe and Mail predicted the the coffee and daughnut concept has reached its peak and there is no more room for growth.
- Power of competition is high.
- Inclusive and accessible Brand.
- Well involved in the community.
- Consumer affinity and sense of pride.
- Distibution Advantage.
- Diverse Menu.
Porters Five Forces Analysis
Weacknesses:
From the 1970s and on:
- Tim Hortons neutralized the competition by defferentiatin it self and its products.
- Fast and agressive expansion throughout Canada.
- Power of competition is moderate to low.
- Lack of popularity in the USA
- Weak franshise celection.
- limited beverage choices compared to some competitors.
Threat of new entry:
- supplies ar easily obtained and available.
- Low capital requierement for stratup.
- The business model is easily imitable.
- The power of new entry is moderate to low.
Threat of Substitutes:
- Initially the threat of substitute was high.
- With time Tim Hortons nutralized the competition by developing Brand loyalty.
SWOT Analysis
Porte's Five Forces Conclusion:
Threats:
- Buyer's force: LOW
- Supplier's force: LOW
- Threat of New entry: LOW
- threat of Substitite: Moderate
- Rivalry: High
Opportunities
Buyers' Force:
- Strong Competitors in the market McDonalds, Coffee Time....
- Not so "fresh" frozen food.
- Consumers making their own coffee.
- A wide range variety
- Improve the atmosphre
- Expanding into new markets
- Promotions Roll up the Rim.
Establishing to 1960s:
- Low consumers spending $57 annually on dining out.
- Hamiltonians preffered coffee while Torontonians preffered tea.
- The number of coffee shops was very high therefore there was many choices.
- Buyer's power was high
- Tim Hortons established a strong presence targeting buyers.
- The first firm to implenent the drive-through in a coffee shop.
- Provided lots of parking space.
- Buyer's power became low.
Contents:
- Porter's Five Forces
- Four Generic Strategies Analysis
- PEST Analysis
- Question period.
Questions???
- Group #19:
- Noor Al Sadi
- Naim Ricardo Halal Rossie
- Raef Roman
- Areeb Siddiqi