ACCOUNTING
Tim Hortons Case Analysis .docx

6 iv competitive advantages of tim hortons a brand

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IV. Competitive Advantages of Tim Hortons A. Brand Awareness in Canada Tim Hortons is an iconic brand in Canada and is part of the Canadian culture. This is a long-term competitive advantage for Tim Hortons because it is valuable and rare when compared to their competitors because it is not possessed by many and it helps neutralize threats in Canada. There is no one coffee shop in the U.S. that is ingrained into the culture. A competitor trying to imitate the brand awareness of Tim Hortons in Canada would be costly because it takes a significant amount of time to build up the brand in a particular area and it may not be successful. There are other substitutes in the Canadian market but they are not too high because of the value of Tim Hortons products. B. Low Cost Advantage Tim Hortons strives to be the leader of product quality in everything they do. Even with this high of standards, Tim Hortons keeps their prices low. This is a short-term competitive advantage for Tim Hortons because other competitors will eventually try to imitate this advantage. This advantage is rare because competitors have to be well established to offer quality products at low prices. This is valuable for Tim Hortons because it helps neutralize threats from other competitors. It is costly for competitors to imitate the high quality, low price advantage because it hurts their bottom line if they have poor supplier relations and distribution channels. It is also a short-term advantage because it is substitutable. C. Acquisition The pending acquisition by 3G Capital, a Brazilian private equity firm that was a majority shareholder of Burger King could become a temporary competitive advantage for Tim Hortons. It is not rare for a company to be acquired but it is valuable for the company that gets acquired because it allows access to intangible resources. The main problem with Tim Hortons in the U.S. is their lack of brand awareness. The company is not well known outside of Canada, except for areas that are close to the Canadian border. The acquisition would allow for Tim Hortons to have access to Burger King’s global expansion experience and would have more sustainable growth with a universal branding platform. V. Competitive Advantages of Competitors Tim Horton’s main competition as outlined in the case consists of McDonalds, Starbucks, Dunkin Donuts, and Panera Bread. These companies all have an advantage over Tim Hortons in the US because they are more widely recognized .Considering McDonalds, Starbucks, and Dunkin Donuts these competitors are more likely have a sustainable competitive advantage when it comes to brand recognition 7
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because of how iconic they have become in American culture. Panera Bread is not as well known and may only have a temporary advantage over Tim Hortons because the food and drinks they offer are fairly similar.
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  • Spring '18
  • Felski
  • Brand, BURGER KING, Fast food restaurant

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