The Tim Horton’s chain was founded in 1964 in Hamiton, Ontario, Canada. The chain’s focus on top quality, always fresh product, value, great service and community leadership has allowed it to grow into the largest quick service restaurant chain in Canada specializing in always fresh coffee, baked goods and home style lunches. Tim Horton’s opened its first U. S. restaurant in 1984 in Tonawanda, N. Y. Since then, the company has expanded into nine other states -- Indiana, Maryland, Kentucky, Maine, Michigan, Ohio, Pennsylvania, Virginia and West Virginia. In 1995, Tim Horton’s merged with Wendy's International, Inc., giving new focus and impetus to the expansion of the Tim Horton’s concept in the United States. Tim Horton’s completed an initial public offering of the company in March 2006 and was fully spun off as a separate company as of September 29, 2006. Tim Horton’s trades on the NYSE and TSX (THI). Through franchisee partnership with Dubai based Apparel Group, Tim Horton’s entered the United Arab Emirates in 2011 with store openings in Abu Dhabi, Dubai and Fujairah, with the first location being Sheikh Zayed Road, opened in 27th September 2011.They are expected to open up to 120 stores in five years across the Persian Gulf region including Qatar, Bahrain, Oman and Kuwait.
For understanding Tim Horton’s Strengths and Weaknesses, and for identifying both the Opportunities open to the global chain and the Threats they face the following SWOT analysis lays down the picture. STRENGTH
The company’s greatest strength is its brand name and reputation of having the largest successful quick-service chain in Canada with an innovative culture. It has a very good mix of food, beverages with very accessible strategic locations and designer restaurant. Tim Horton is known for its speed of service and customer satisfaction. Tim Horton in UAE is franchised to Apparel group with a well know expertise and understanding of the market.
| STRENGTH * Largest quick-service chain in Canada with an innovative culture * SWOT Good mix of food and beverages , locations * Speed of service and Customer satisfaction
| WEAKNESS * Low profitability in USA compared to Canada might make it difficult to attract and retain qualified franchisees * Service quality standards in international stores are low compared to Canada
| OPPORTUNITY * Developing Gulf Regions creates increased demand for convenient foods. * Tim Horton's can build a reputation of hygienic food they are likely to be successful.
| THREAT * Other fast food, such as McDonald’s offering coffee and breakfast option
| 1 SWOT Analysis for Tim Horton
The profitability in its current global chains is comparatively low compared to Canada. This might make it difficult to attract and retain qualified franchisees for future global expansion. There is criticism on the service quality standards in the international stores and are low compared to home Canadian branches. OPPORTUNITY
The gulf regions are developing at a very high pace and are creating increased demands for convenient foods. Gulf regions are very much concerned with the food hygiene and Tim Horton could use this opportunity to create a brand know for its hygienic food.
Other competitors in UAE such as McDonald’s are offering coffee and breakfast option which are Tim Horton’s key factors of differentiation. Industrial Analysis: Porter’s Five Forces
To draw up on the industrial organization and to determine the competitive intensity and attractiveness of the market Michael Potters five forces analysis has be used.
1. Threat of New Entries
The threat for new entries is high in case of beverages industries as the UAE is an open market for investors and entry barriers are relatively low for the industry. There are new brands appearing in the market with usually lower prices. But as with its brand it holds a very significant market share in Canada and loyal customers are not very...
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