Tim Horton - 4900 (1)

pptx

School

York University *

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Course

ADMS 4900

Subject

Marketing

Date

Feb 20, 2024

Type

pptx

Pages

17

Uploaded by DoctorKnowledge17082

Report
Main issue Global Expansion
Global Expansion Lack of brand awareness in other countries Slow growth rate in the restaurant industry
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Global Expansion Gain more market share Increase profits Try to stay competitive with its competitors
Competitor Analysis McDonald Starbucks Dunkin Donuts
SWOT ANALYSIS STRENGTHS 4th largest in North America, largest in Canada Innovation WEAKNESSES Financial ratios did not meet targets Untapped American market OPPORTUNITIES Rewards programs on the rise Capitalize on gluten free and healthier market THREATS Changing consumer preferences Sit down dinners vs. Fast food Starbucks and McDonalds competition
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VRIO Brand Awareness Valuable - yes Rareness - yes Costly to Imitate - yes Organized to capture value - yes Customer Service Valuable - yes Rareness - no Costly to Imitate - no Organized to capture value - yes Distribution Valuable - yes Rareness - no Costly to Imitate - no Organized to capture value - no
Porter’s 5 Forces Rivalry among competitors - High Bargaining Power of Buyers - High Bargaining Power of Suppliers - Low Threat of Substitute - High Threat of New Entrants - High
Value Chain INBOUND LOGISTICS Coffee producing regions Program for farmers OPERATIONS Eat in dining areas, drive thrus “We fit anywhere” Coffee making process OUTBOUND LOGISTICS Manufacturing facilities and warehouses Corporate owned trucks deliveries Sophisticated operations SERVICE Product innovation based on consumer trends Lattes, cappuccinos, iced coffees MARKETING AND SALES Chain-wide vs regional advertising Tim Hortons and Canadian culture Roll up the rim
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PESTEL Political - government regulations Economic - higher wage, higher inflation and lower growth in industry Social - healthier food, ethnic option and younger generation’s trend Technological - social media and digital technologies Environmental Legal - local laws
Alternative #1 Mainly Focus its operations in Canada: Positive: Experience in running operations in Canadian market Constant increase in sales and revenue every year between 2009 and 2013 Ability to innovate and differentiate its products by adding items of local Canadian customers choices Focus to capture large amount of Canadian market share
Alternative #1 cont. Mainly Focus its operations in Canada: Negative: Dependent too much on Canadian sales Brand image and their existing locations may be affected if abandoning their operations in the US and overseas Markets Focusing overseas may lead to divert their attention from existing markets Can save money by not using capital to invest in other markets No longer be called as a multinational company
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Alternative #2 Merger with Burger King: Positive: Opportunities to expand globally and pursue foreign markets Target a bigger market segment Reduction in costs as Burger King may able to purchase in bulk - Economies of scale Allows to monopolise the certain areas of the market where both can dominate Ability to combat of competition in the market Increase brand awareness and familiarity globally
Alternative #2 cont. Merger with Burger King: Negative Can be dependent too much on Burger King Consumers may eventually start focusing on Burger King - Loss of Tim Hortons brand image Culture Clash between both the companies employees May create job security issues among the existing employees as new management will come in place
Final Recommendation Merger with Burger King
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Implementation Merge as soon as possible Increase investment in R&D and market studies Merge of employees skills and knowledge of both companies Enough time is given after announcing the merger deal, as operations need to diverte and plans have to be developed Due Diligence - all Terms & Conditions are agreed upon before announcing to the Public Target multiple segments in the market
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