Burger King/Tim Hortons SWOT analysis
SWOT Analysis for Burger King & Tim Horton’s
Burger King-Tim Horton’s Internal Factor Evaluation
Strengths
Weight
Rating
Weighted Score
Tim Horton's revenue
0.08
4
0.32
Tim Horton's same-store sales growth
0.09
4
0.36
Tim Horton's market shares in Canada (70% baked goods, 75% coffee)
0.09
4
0.36
Burger King size
0.05
3
0.15
Tim Horton's brand image
0.09
4
0.36
Burger King's brand recognition
0.04
3
0.12
Tim Horton's healthier options
0.07
3
0.21
Burger King's tax savings of 8.5% (moving headquarters to Canada)
0.05
3
0.15
Global presence (combined locations in 100+ countries)
0.06
3
0.18
Tim Horton's catering
0.02
3
0.06
Tim Horton's food/beverage quality
0.06
4
0.24
Weaknesses
Weight
Rating
Weighted Score
Burger King's brand image
0.12
1
0.12
Burger King's product line
0.06
2
0.12
Tim Horton's lack of brand recognition (outside of Canada)
0.10
1
0.10
Burger King's marketing/advertising
0.06
1
0.06
Tim Horton's streamlining products (negative public reaction)
0.01
2
0.02
Internal Analysis
When looking at the internal factors of Burger King (BK) and Tim Horton’s (TH), the largest weakness is Burger King’s poor brand image. BK has global brand recognition but the poor image could be challenging to overcome and could even negatively impact TH’s image. TH’s image has allowed them to gain 70% of the market share in baked goods and 75% in coffee within the industry in Canada. In addition to TH’s high quality coffee they have followed trends by adding healthier options over the years, making their product offering a strength in today’s market. BK has not followed social trends, and instead has held out on the addition of healthier options and promoted their high calorie, high fat food. BK’s refusal to focus on healthier options is a weakness in today's environment and also a weakness going forward if they do not change. TH’s revenue growth, same-store sales growth and market share are a strength that can help stabilize BK’s slumping sales. It also means that TH’s
Burger King-Tim Horton’s Internal Factor Evaluation
Strengths
Weight
Rating
Weighted Score
Tim Horton's revenue
0.08
4
0.32
Tim Horton's same-store sales growth
0.09
4
0.36
Tim Horton's market shares in Canada (70% baked goods, 75% coffee)
0.09
4
0.36
Burger King size
0.05
3
0.15
Tim Horton's brand image
0.09
4
0.36
Burger King's brand recognition
0.04
3
0.12
Tim Horton's healthier options
0.07
3
0.21
Burger King's tax savings of 8.5% (moving headquarters to Canada)
0.05
3
0.15
Global presence (combined locations in 100+ countries)
0.06
3
0.18
Tim Horton's catering
0.02
3
0.06
Tim Horton's food/beverage quality
0.06
4
0.24
Weaknesses
Weight
Rating
Weighted Score
Burger King's brand image
0.12
1
0.12
Burger King's product line
0.06
2
0.12
Tim Horton's lack of brand recognition (outside of Canada)
0.10
1
0.10
Burger King's marketing/advertising
0.06
1
0.06
Tim Horton's streamlining products (negative public reaction)
0.01
2
0.02
Internal Analysis
When looking at the internal factors of Burger King (BK) and Tim Horton’s (TH), the largest weakness is Burger King’s poor brand image. BK has global brand recognition but the poor image could be challenging to overcome and could even negatively impact TH’s image. TH’s image has allowed them to gain 70% of the market share in baked goods and 75% in coffee within the industry in Canada. In addition to TH’s high quality coffee they have followed trends by adding healthier options over the years, making their product offering a strength in today’s market. BK has not followed social trends, and instead has held out on the addition of healthier options and promoted their high calorie, high fat food. BK’s refusal to focus on healthier options is a weakness in today's environment and also a weakness going forward if they do not change. TH’s revenue growth, same-store sales growth and market share are a strength that can help stabilize BK’s slumping sales. It also means that TH’s
Cited: Trefis Team. “Burger King-Tim Hortons Cross-Border Merger Much More Than Tax Inversion.” Forbes.com. 29 August 2014. Trefis.com. 27 September 2014. <http://www.forbes.com/sites/greatspeculations/2014/08/29/burger-king-tim-hortons-cross-border-merger-much-more-than-tax-inversion/> "The Morning Risk Report: Values and Reputation Risk in Fast Food." Risk Compliance RSS. N.p., n.d. Web. 27 Sept. 2014. <http://blogs.wsj.com/riskandcompliance/2014/08/27/the-morning- risk-report-values-and-reputation-risk-in-fast-food/>