o52rit8 t-ro5,- m2r:tin, r.iss
•
• •
•
In.r2sin, <2rit8 o= ro5.ts .2n in.r2s s2s
Hi,-r .osts o= r26 m2tri2s Hi,-r .osts o= 2o5r m2: i>.5t to m2nt2in o6 ri.s
Immnt io ro5.ts in t-ir mn5
The S;#T allows us to ha'e a clearer imae of the compan% and how the internal and e6ternal factors are affectin it. B% the strenths and opportunities we can tell that the $rand is well positioned in their taret sement due to its hih *ualit% and appreciation from their clients. Ge'ertheless it is necessar% to reali?e that a ood positionin in the market in not e'er%thin and the compan% must focus on their aps in order to keep $ein successful. It has to $e taken in consideration that the coffee sector is ettin $ier each da% and the customer options are increasin lettin a hih 'ariet% of possi$ilities and if the compan% does not achie'e their e6pectations it will $e decreasin its strenth. Eternal #actor E7aluation 1E#E2
B
%,tern#l F#ctors
-ei'"t
R#tin'
-ei'"ted Score
6pandin into new markets &oinin alliances and partnerships The $rand can le'erae its e6istin imae and increase its popularit% throuh marketin e6ercises Increasin 'ariet% of products can increase sales Implement $io products in their menu
-., -.1/ -.-/
!
-. -. -.1
Oortunities
T"re#ts
-.1 -.-/
, ! ,
-.! -.1
4rowin health conscious sement 3resence of stron competitors in this sement Hiher costs of raw materials Hiher costs of la$our make difficult to maintain low prices
-.1 -.1/ -.1 -.1
! ,
1
Tot#l Score
-. -. -., -. .,
In e'aluatin the e6ternal factor of the compan% I took in consideration mainl% the competiti'e" social and economic information and had a result a score that shows that Tim Horton’s is a$o'e a'erae and has a stron position in the market despite the stron competitors and the new trends from customers. The opportunities are more than the threats and that pro'ides the compan% a $etter o'erlook of the choices the can make to e6pand into a larer market $ut the score of -. in the presence of stron competitors forces the compan% to make its differentiation e'en stroner. Internal #actor E7aluation 1I#E2
B
Intern#l F#ctor
-ei'"t
R#tin'
It is Canadas larest fast food ser'ice with o'er 1--"--- emplo%ees Stron $rand name and compan% imae. 5eputation for ha'in remarka$le product *ualit%. Tim Horton’s commands ma>orit% of the Canadian market for $aked oods and holds ma>or of the Canadian coffee market It has $een purchased $% Burer in in this =uust ,-1! and the% now are the third7larest operator of fast food restaurants in the world 4reat customer ser'ice.
-.-/
-ei'"ted Score
Stren't"s
-.1/ -.1
! !
-.-/
0 -.1/
!
-.1
-.1 -.-/ -.1 -.-/ -.1
, 1 1 , ,
-e#.ness
Hih competition $rands :oes not care to the health conscious sement Got a solid worldwide e6istence 3a%in method Got real differentiation with other competitors Tot#l Score
0?1+ 0?@ 0?4
1
0?1+ 0 0?@ 0?3 0?' 0?0+ 0?1 ,.0/
Instead the e6ternal factor anal%sis" in the internal anal%sis we disco'ered that the strenths of the compan% must $e impro'ed and $ecome
e'en more powerful $ecause the weaknesses can $e danerous $ecause of their nature. The fact of not ha'in a solid worldwide e6istence and not standin up to the customer needs can affect directl% the position of the compan%" mainl% if the differentiation amon the competitors is not solid. The compan% must focus on its hih score $ein a stron and known $rand as well as the $enefit of all%in with one of the $iest fast food companies.
Competiti7e !role Matri
&
Tim Horton/s Critic#l Success F#ctor
=d'ertisin 3roduct
;eiht -.1 -.1/ -.1 -.1/ -.1/ -.1/ -.-/ -.1/ 1
5ankin , ! ! , !
Score -., -.!/ -. -. -. -.!/ -.1 -. .
0risy 0reme
5ankin , , , ,
Score -. -. -., -. -. -.!/ -.1/ -.!/ ,.!/
1un.in 1onuts
5ankin , ! ! , !
Score -. -.!/ -., -.!/ -. -. -.1 -. .
The main competitors for Tim Horton’s compan% are risp% reme and :unkin :onuts+ I anal%?e those to $ecause the% $oth offer the customers almost the same line of products with 'er% similar characteristics. The chart indicates that the three companies are a$o'e the a'erae of ,./ score which means that the% are stron and hih positioned amon the market. The $rand name and the customer lo%alt% are the hihest scores in the compan%’s anal%sis" which means that now the% should focus on the ad'ertisin and sales distri$ution to increase its score on it. The compan% should put more attention in what :unkin :onuts is doin and offerin to its costumers" this can help to appreciate what is that
the% ha'e that makes the customers also lo%al to them which i'es them also a hih score in financial position as the chart shows.
Strengt9s
Matc9ing
,
To8s Matri
L2r,st =2st =oo sr
/ea=ness Hi,- .omtition r2ns *os not .2tr to t- -2t.ons.io5s s,mnt Not 2 soi 6or6i istn. &28in, mt-o
Comm2ns m2Dorit8 o= t- C2n2i2n m2r:t =or 2: ,oos 2n -os m2Dor o= t- .o9 m2r:t
Not r2 i9rn.i2tion 6itot-r .omtitors
It -2s n 5r.-2s 8 (5r,r in, in t-is A5,5st '014 2n t-8 no6 2r t- t-ir2r,st or2tor o= =2st =oo rst25r2nts in t- 6or )r2t .5stomr sr
Opportunities
SO F Strategies
/O F Strategies
E2nin, into n6 m2r:ts
T2: t- 2<2nt2, o= t- =2.t t-2t (5r,r in, is :no6n 6or6i to ntr into 2 i,,r m2r:t
;oinin, 2in.is 2n 2rtns-is
Immnt n6 ro5.ts in t- mn5 o= <n -i,-r 52it8
T- r2n .2n <r2, its istin, im2, 2n in.r2s its o52rit8 t-ro5,m2r:tin, r.iss
A8 6it- stron, .om2nis in t- .t r2.-2 m2r:ts
O9rin, n6 m2r:ts 2 5s in t- ro5.ts to -2< 2 r2 i9rnti2tion
A..tin, 2 :in o= 28in, mt-os to ,i< t- .ints 2 mor .om=ort2 .-oi. Cr2tin, .omos in t- ro5.ts to ,i< 2 ttr ri. 2n otion t-2n .omtitors
In.r2sin, <2rit8 o= ro5.ts .2n in.r2s s2s Immnt io ro5.ts in t-ir mn5
T9reats )ro6in, -2t- .ons.io5s s,mnt &rsn. o= stron, .omtitors in t-is s,mnt Hi,-r .osts o= r26 m2tri2s Hi,-r .osts o= 2o5r m2: i>.5t to m2nt2in o6 ri.s
ST F Strategies
/T F Strategies
&rsnt 2s 2 -2t-8 otion =rom (5r,r in, ri2 .5stomrs
Intro5.in, io -2t-8 ro5.ts 6it- 2 ri. t-2t rrsnts t- 52it8 o= it
Immntin, 2n mo8 r62rin, s8stm
Cr2t n6 2<rtisin, to t- n6 ntrin, m2r:ts
sin, t- 2<2nt2, o= t- 2r28 2.-i< m2r:t to t- mo5t- to mo5tm2r:tin,
The S;#T anal%sis i'es the opportunit% to anal%?e each aspect of the compan%" from the internal factors that can $e chaned and manaed up to the e6ternal factors that can’t $e controlled and affect the compan% directl%. #nce we ha'e esta$lished those factors the T#;S anal%sis allows the compan% to match each one of the four aspects (opportunities" threats" strenths and weaknesses) in order to create and put into practice a different 'ariet% of strateies that will permit the compan% to defeat their fraile aspects and increase its stron ones.
ach one of the strateies that I tr% to appl% in the chart will i'e the compan% a wa% to e6pand into a new market with the chance of impro'in its sales and position e'en more in the market" as well as enterin a new sement with new products that fit the customers new needs.
Internal Eternal Matri
(
IF ,.,/ 5epresents a'erae F ., 5epresents stron
The internal e6ternal matri6 (I) illustrates that the compan% is positioned in the
Space Matri
1imension
inancial Strenth Competiti'e =d'antae n'ironmental Sta$ilit% Industr% Strenth
)ver#'e
,. 7,. 7., ,.0
Intern#l 1imension Fin#nci#l Stren't" Return of Investment Fin#nci#l #nd oer#tin' *ever#'e *i8uidity -or.in' C#it#l C#s" Flo$s Cometitive )dv#nt#'e M#r.et s"#re 9u#lity Product life cycle Customer Preference Tec"nolo'ic#l innov#tion Sound suly c"#in
1 ! ,
X AisG 0?'
7 7, 7 71 7! 7
'?@ '?#
%,tern#l 1imension %nvironment#l St#(ility Tec"nolo'ic#l c"#n'es Infl#tion 1em#nd el#sticity Cometitor’s rice r#n'es rriers to entry Cometitive ressure %#se to e,it Price el#sticity of dem#nd Ris. e,osure Industry Stren't" 3ro$t" Potenti#l Profit otenti#l Fin#nci#l St#(ility Resource St#(ility %#se of entry C##city utili:#tion
7 7, 7 7 7! 7 7, 7, 7! / 1 ,
m p The Comtiti
Space atri6 e6emplifies that the compan% is situated in the
The strateies that must $e taken into consideration are primaril% the increase of financial strenth $% e6tendin the product line and merin with a orani?ation that is stroner and hiher positioned" all of this with the intention of mo'in into an aressi'e strate%. oreo'er impro'in the profit will also lead to reinforcin the cash flow of the compan% permittin to in'est into new product de'elopment. C) Matri,
Product 4 5Coffee Product 7 5.ery Product +
Revenues
2 Of Coror#te revenues
*#r'est Cometitor/s m#r.et s"#re
Your (r#nd/s s"#re
Rel#tive M#r.et S"#re
M#r.et 3ro$t" S"#re
1/-
!,8
/
-
-.9,
1-8
0-
,8
!/
-
-.
1/8
!9-
1/8
,-
1/
-./
78
5Ot"er (ever#'es Product ; 5&re#.f#st
//-
18
/
/
-.1!
/8
The BC4 descri$es and e'aluates its products and its position in the market" this is helpful to see and anal%?e if there must $e an% chanes on them or if one product is affectin either positi'el% or neati'el% to the compan%. In this chart we estimate as well the shares to appro6imate if the compan% has a hih le'el of competiti'eness. The raphic illustrates that the coffee and the $aker% are the star products" which i'e the compan% sta$le earnins and a neutral cash flow and also pro'ide a hih competiti'e le'el amon the larest competitor+ the strate% that must $e taken into consideration is the in'est for rowth and it will help directl% to makin the compan% financiall% stroner. 5eardin the forth product ($reakfast) it is e6posed as a *uestion mark and it means that this product could $e incurrin into looses" therefore the compan% must pa% attention to it to take its potential of $ecomin it a star and later on a cash flow achie'in customer preferences. =s a cash cow we can identif% the rd product" it contri$utes more earnins for the compan% $ecause it includes all the other $e'eraes $esides coffee" this product must $e promoted $ecause it has a hih prospecti'e $ut it
' 1 4 3
)rand Matri
Strategy B
The 4rand Strate% atri6 defines the compan% in a weak competiti'e position $ut in a rapid market rowth. It tells that the compan% is in a sector in which the rowth is continuousl% ettin $ier $ut also the competitors are+ e'en thouht the compan% is well known $etween its customers" it has not enouh elements to $e hihl% competiti'e aainst the other companies that are in the market nowada%s. This matri6 e6presses that the compan% has the need of concentratin in man% aspects to impro'e its competiti'e position" such as market penetration and product and market de'elopment.
Matri Analysis
=lternati'e Strateies M#r.et Penetr#tion
S3=C ,
BC4 ,
=
I B
4S C
,
,
,
,
arket :e'elopment
6
Product 1eveloment
,
orward Interation Backround Interation Hori?ontal Interation Concentric :i'ersification Conlomerate :i'ersification &oint Kenture 5etrenchment :i'estiture Ji*uidation
6
6
6
6
,
,
,
,
6 6 6 6
6
6
6
,
6 6
6
6
6 6
6
6
6
6
;ith the atri6 =nal%sis it is eas% to identif% which are the stronest alternati'e strateies that could $e implemented in the compan%" in order to select the arket 3enetration and the 3roduct :e'elopment I went throuh all the criteria of each raphic and chart to reconi?e which ones were showin those two elements" and at the end all of them included them
Decision 8it9 0uantitati7e Strategic !lanning Matri 10S!M2 0ey Intern#l F#ctors Intern#l Stren't"s
-ei'"t
M#r.et Penetr#tion )S T)S
It is Canadas larest fast food ser'ice with o'er 1--"--- emplo%ees Stron $rand name and compan% imae. 5eputation for ha'in remarka$le product *ualit%.
-.-/
!
-.,
-.1/
-.1/ -.1
-.!/ -.
, !
-. -.!
,
Product 1eveloment )S T)S
Tim Horton’s commands ma>orit% of the Canadian market for $aked oods and holds ma>or of the Canadian coffee market It has $een purchased $% Burer in in this =uust ,-1! and the% now are the third7larest operator of fast food restaurants in the world 4reat customer ser'ice.
-.-/
-.1/
,
-.1
-.1/
-.!/
-.!/
-.1
,
-.,
1
-.1
-.1 -.-/ -.1 -.-/ -.1
, 1 1 ,
-., -.-/ -. -.-/ -.,
, 1 , 1 1
-., -.-/ -., -.-/ -.1
Intern#l -e#.nesses
Hih competition $rands :oes not care to the health conscious sement Got a solid worldwide e6istence 3a%in method Got real differentiation with other competitors
4
7<==
7<4
0ey %,tern#l F#ctors
6ternal #pportunities 6pandin into new markets &oinin alliances and partnerships The $rand can le'erae its e6istin imae and increase its popularit% throuh marketin e6ercises Increasin 'ariet% of products can increase sales Implement $io products in their menu
-., -.1/ -.-/
!
-.0 -.!/ -.1/
1 , ,
-., -. -.1
-.1 -.-/
, ,
-., -.1
!
-.! -.1/
-.1 -.1/ -.1 -.1
1 , 7 7
-.1 -.
, 1 1 7
-., -.1/ -.1
%,tern#l T"re#ts
4rowin health conscious sement 3resence of stron competitors in this sement Hiher costs of raw materials Hiher costs of la$our make difficult to maintain low prices
4
Sum
7<4
4<6
!./
.
The
de'elopment and this represents that Tim Horton’s must appl% a strate% that makes a direct chane o'er the access of the market
Imlement#tion St#'e #'erall the result of all the charts a'e the outcome for the
%v#lu#tion St#'e #nce the strate% is implemented in the compan% it is necessar% to keep on e'aluatin the different tools that ha'e $een use to set up the strate% chosen. This can also $e seen as a plannin process where all the estimated outcomes from e'er% alternati'e that was 'alued are compared to the associated estimated risk and result. There must $e a measurin of the actual and the e6pected performance of the compan% to 'erif% that al the 'ariances that will take place on it will >ust deli'er a $etter position in the market. The S;#T illustrates how opportunities e6ist to further le'erae our assets" $roaden our reach" deepen our capa$ilities and continue to row.
Conclusion Strateic anal%sis is alwa%s fundamental in e'er% compan%" no matter how ood or $ad it is in the $usiness world it is necessar% to alwa%s ha'e an o'erlook of what is oin on inside and outside of it and how the different factors affect it" whether we can chane or control them or not.
;ith this anal%sis I can ha'e a $etter o'erlook of the Tim Horton’s compan% and I can $e a$le to descri$e and define all the characteristics that ma% $e taken into consideration to see if a compan% is in a ood situation in a specific market sement. =ll the strateic tools were useful in order to define what is what the compan% needed to keep $ein successful and also to o'ercome 'er% o$stacle that could appear and to know how to appl% the result of e'er% tool is helpful to understand the di'erse action that a compan% ma% take when its situation is not the $est. or the future the compan% has two ma>or plans to achie'e $% followin the strateies+ ha'in an esta$lished international presence and model to roll out in the new markets and also an enhanced set of capa$ilities and talent in the orani?ation. B% all means the compan% re*uires defendin and $uildin its stronholds" as well as de'elopin new sources of rowth and future competiti'e ad'antae.
References 1? Market Publishers; Rort *2t22s !'01+" Tim Horton’s In.? F5n2mnt2 Com2n8 RortB SWOT An28sis? -ttG//=?m2r:t5is-rs?.om/2.Js6ot/timJ-ortonsJin.Js6otJ2n28s isJ2.?= '? Balance Sheet K Ann52 Rort !'014" Tim Hortons -ttG//2nn52rort?tim-ortons?.om/o6no2s/(22n.S-t?= 3? Statement of Operation; Ann52 Rort !'014" Tim Horton’s -ttG//2nn52rort?tim-ortons?.om/o6no2s/St2tmnto= Or2tions?= 4? StatistaK Co9B Ho5sB C-2ins !'013" R<n5 r2n:in,G -ttG//666?st2tist2?.om/st2tisti.s/'700$1/.o9-o5s.-2insr2n: 8r<n5/ +? Statista; Co9B Ho5sB C-2ins !'013" R<n5 r2n:in,G -ttG//666?st2tist2?.om/st2tisti.s/'700$1/.o9-o5s.-2insr2n: 8r<n5/ @? Strategic Plan; Ann52 Rort !'014" Tim Horton’s? -ttG//666?tim-ortons?.om/.2/n/.oror2t/str2t,i.2n?- 7? Corporate, In<stors; S2= H2ror !'014" Liti,2tion R=orm A.t 2n En