Porter’s Five Forces – Competitor Analysis Michael Porter’s five forces is a model used to explore the environment in which a product or company operates to generate competitive advantage. Porter’s Five forces analysis looks at five key areas mainly the threat of entry‚ the power of buyers‚ the power of suppliers‚ the threat of substitutes‚ and competitive rivalry (advantage). Michael Porter’s Five Forces: New Entrants Suppliers Industry competitors and extent of rivalry & advantage Buyers
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Porter’s 5 Forces Jasmine Tomczak - 1152995 Porter’s 5 Forces Re: Fast Food Industry Commerce 4PA3 - C03 Jasmine Tomczak - 1152995 September 25‚ 2014 Porter’s 5 Forces Jasmine Tomczak - 1152995 The fast food industry is one which affects many lives in Canada. The following is a Porter’s 5 Force’s analysis that will determine how attractive this industry is as a whole. To determine the threat of new entrants‚ one must first consider the barriers to entry. Firstly‚ the start-up costs associated
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Executive Summary(1-2 pages) Tim Hortons‚ Inc. is positioned within the market as a mature company with a strong consumer franchise. Broadly‚ the entity enjoys a strong brand‚ very profitable franchise income‚ strong cash flow‚ high returns‚ strong same store sales‚ and a low-risk business model. Business Overview Tim Hortons‚ Inc. engages in the ownership and operation of quick service restaurants‚ Tim Hortons restaurants‚ in Canada and the United States. The company offers coffee‚ flavoured
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growing fast food restaurants. Tim Horton’s‚ home of the delightful coffee and fresh baked goods currently consists with more than twice as many locations than the total number of MacDonald’s franchises in Canada‚ and constantly expanding. Keys to such a triumphant success are influenced by a number of factors‚ from producing and marketing their long range of delicious products up to the management and selection of franchisees to operate their stores. Since 1964‚ Tim Horton’s has continuously introduced
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the case company (Tim Horton) - Business Model: The Company’s main business is franchising and collecting royalty revenues from Tim Hortons restaurants located in Canada and the USA. The franchised restaurants serve a broad menu of drinks (premium coffee‚ smoothies‚ tea‚ espresso-based hot and cold specialty drinks) and food (fresh baked goods‚ classic sandwiches‚ wraps‚ soups‚ prepared food) (Tim Hortons: Annual Report‚ 2012). - The General Strategy in Canada (Tim Hortons: Annual Report‚ 2012):
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founded by legendary hockey player Tim Horton. By 1967‚ there were three Tim Hortons stores open for business under the first successful franchisee‚ Ron Joyce (who currently serves as chairman emeritus of the TDL Group). Since then‚ Tim Hortons has grown to 2527 stores (2343 in Canada‚ 184 in the United States) and over US$800 million in revenue. With a 13-year cumulative average growth in sales of 7.1 percent in Canada and 17.5 percent in the United States‚ Tim Hortons is one very successful coffee
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Porter’s 5 Forces Introduction The model of the Five Competitive Forces was developed by Michael E. Porter in his book „Competitive Strategy: Techniques for Analyzing Industries and Competitors“in 1980. Since that time it has become an important tool for analyzing an organizations industry structure in strategic processes. Porter’s model is based up on the insight that a corporate strategy should meet the opportunities and threats in the organizations external environment. Competitive
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and many other aspects of daily life of a business. One interesting for corporate strategy planning approach has been proposed by Michael E. Porter who states that there are five forces that influence the long-term profitability of a market or some segment of it. Therefore‚ the corporation must assess their objectives and resources against these five forces driving industry competitions‚ which are described below: 1) Threat of entry of new competitors or the market segment is unattractive depending
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PORTER’S FIVE FORCES 4 Power of Suppliers Criteria Level Effect on Power Effect on Profit Difference of Inputs High Increases Decreases Cost of Switching Suppliers High Increases Decreases Threat of Forward Integration High Increases Decreases Supplier Concentration High Increases Decreases Difference of Inputs Product differentiation within inputs in the tech industry is largely dependent on how recently the input has been developed (the extent of which it is considered
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high enter barrier for these specialty coffee shop or chain shop due to the mature life cycle of coffee and snack shops in Canada and high investment on both physical and human capitals. As stated in the article‚ the industry is concentrated with Tim Hortons and Starbucks with 86.9% market share. Brand identity is essential for the big player since it is difficult to change customer’s daily routine and taste. Also‚ the economies of scale help larger operators to negotiate favorable terms with suppliers
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