Tim Hortons Case Analysis .docx

A starbucks starbucks offers high quality coffee at a

Info icon This preview shows pages 9–11. Sign up to view the full content.

A. Starbucks Starbucks offers high quality coffee at a premium price. Their highly customizable drink offerings as well as their commitment to serving the best coffee give them a sustainable advantage over other restaurants such as Tim Hortons, who compete mostly on price instead of quality. Starbucks also has strict policies of only using ethically sourced coffee beans, which is a temporary advantage over Tim Hortons. Tim Hortons seems to have a more relaxed program for acquiring their coffee beans, but they could implement tighter standards in order to become competitive in this aspect. Considering Starbucks was founded in the United States and Tim Hortons was founded in Canada, Starbucks will always have an advantage over Tim Hortons with respect to their brand being seen as domestic rather than foreign. B. McDonalds McDonalds is Tim Hortons largest competitor in terms of low product pricing. Tim Hortons has modeled their menu to be very similar to what McDonalds offers in breakfast foods and drinks. Tim Hortons even offers these options at slightly lower prices for the most part (as of 2014). The main competitive advantage that McDonalds has over Tim Hortons is the fact that they offer lunch and dinner foods to a much greater capacity than Tim Hortons. This can be seen as a sustainable competitive advantage because McDonalds offers foods and drinks that are appropriate for breakfast, lunch, and dinner, and all at extremely low prices. Tim Hortons offers cafe style foods such as soup or sandwiches, but would need to overhaul their entire restaurant structure if they wanted to directly compete with McDonalds on all fronts. Similar to Starbucks, McDonalds also has the advantage of being seen as more of an American company and is much more established in the US than Tim Hortons is. C. Dunkin Donuts Dunkin Donuts is another American company that provides similar products and services to Tim Hortons. They are well established in the American Northeast and have even expanded into Canada in the past, with little success. Dunkin can be seen as the mirror image of Tim Hortons in the US, except they are about twice as large and have about eight times as many locations in the US. The case even mentions Tim Hortons expansion into Dunkin Donuts northeast territory and the ensuing poor performance which led to the closure of the majority of those restaurants. Dunkin Donuts has the temporary competitive advantage of being well established in the key area which Tim Hortons needs to expand into in order to break through in the US market. If consumer tastes change or if Tim Hortons can prove their value over Dunkin Donuts, they can overcome this barrier. There is no pricing information available on Dunkin’s average product costs, but it is probably very similar to McDonalds and Tim Hortons in that it tries to provide the lowest cost 8
Image of page 9

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

for customers. VI. Main Issues Facing Management As Tim Hortons continues to expand and enter new markets there are a number of issues facing management, some of which the case outlined and some of which we discovered. Financially Tim Hortons seems to be a relatively stable company, but operating in an industry with razor thin margins (13% in this case) and intense
Image of page 10
Image of page 11
This is the end of the preview. Sign up to access the rest of the document.
  • Spring '18
  • Felski
  • Brand, BURGER KING, Fast food restaurant

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern