Tim Hortons Essay

1491 Words6 Pages
This report assesses the internal and external factors affecting Tim Hortons operations in the quick service restaurant industry. From its inception in 1964 until present days the Company has enjoyed continued growth in sales volumes and number of locations within different geographical locations. Operating in a highly competitive environment the Company’s customer value proposition is centered on high quality food at reasonable price which is complimented by excellent customer service. Over the years of operations Tim Hortons has developed, and continue to foster three core strategies which greatly impact the company’s competitive advantage: growth, customer orientation, and operational effectiveness. Value chain model has been assessed to better understand the Company’s core activities that create and deliver value to stakeholders. This report also reviews the company’s external strategic position by evaluating Tim Hortons five competitive forces: power of suppliers, power of buyers, threat of new entrants, threat of substitutes, and overall company’s position among rivals. Table of Contents SWOT Analysis 1 Strength 1 Weaknesses 1 Opportunities 2 Threats 2 Stakeholders 2 Value Chain 3 Porter’s Five Forces 3 Bargaining power of suppliers 4 Bargaining power of consumers 4 Threat of substitute products 4 Barriers to entry 4 Competitive Rivalry 4 Conclusion 5 Works Cited 6 SWOT Analysis Strength Since 1964, when Tim Hortons opened its first restaurant in Hamilton, ON, the Company was able to capture the largest market share, about 41%, in a quick service restaurant industry in Canada. It is also rapidly expanding to US, where currently it has 714 restaurants. Tim Hortons is very well known for its customer value proposition: it provides low cost, high quality products and excellent customer service. This allows the
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