Tim Hortons - Strategy and Core Competencies

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Tim Hortons - Strategy, Core Competencies, Capabilities and Value Chain
  • 1. Tim HortonsAlways Fresh
  • 2. About the Company Founded in 1964 in Hamilton, Ontario, Canada Started as of a small restaurants and served only coffee and two types of donuts The company has diversified food products and locations Tim Hortons have more than 4500 restaurants worldwide On August 26, 2014, Burger King agreed to merge with Tim Hortons for US$11.4 billion
  • 3. Vision Statement ▪ “Our vision is to be the quality leader in everything we do” ▪ “The main focus is to excel in the food industry and get innovative products and to enhance the existing services. We constantly strive to be the best through determination and passion.”
  • 4. Mission Statement “Our guiding mission is to deliver superior quality and services for guests and communities, leadership, innovation and partnership.”
  • 5. Organizational Structure
  • 6. PESTLE Analysis Political •Procedural barriers to entry •Political Instability in nearby GCC countries Economic •Fluctuating exchange rates put risk to volatile commodities •Increase customer spending in the fast food industry Social •Consumer Behavior – Child Obesity, healthy food, Time. •Attitude towards foreign employees
  • 7. PESTLE Analysis Technological • Ordering food made easy • Inclusion of automatic transmission trucks to save fuel costs Legal • BPSCC • Implementation of health conscious laws – Trans fats and Calorie Counts • Environment Regulations Environmental • Green Building • Reducing Energy and Water Consumption
  • 8. Value Chain Of Tim Hortons
  • 9. Value Chain Of Tim Hortons Supply Chain Management • Pallet optimization by shifting from 20 lb. to 22.5 lb. coffee boxes which save 200 truckloads per year Distribution • Better route and truck selection to ensure timely delivery of fresh products • Three channel Customer service • 24 hours drive through facility • Outlets in shopping malls, gas stations, universities and even near military bases Market Research and Planning • Vertical Integration of in-house coffee roasting in value chain • Merger with Burger king to capture
  • 10. Competencies And Capabilities Remarkable products quality Distribution Channels Unparalleled Customer Service Franchisee Training Community Leadership Leverage Technology for expansion Product Innovation and Menu Expansion
  • 11. Competitive Advantages ▪ Well known brand name ▪ Strong Customer Preference ▪ Price Points ▪ Store Location and Density ▪ Relatively low advertising and marketing per store
  • 12. The Competition
  • 13. Industry Drivers In Coffee and Fast Food Industry, taste as well as quality of the product is the main driving force Variety in the range of products offered also an important factor for this industry Timely delivery of order to customers important Customer loyalty an important driving force to the company to grow
  • 14. Success Factors ▪ Tim Hortons has been famous for its high quality as well as taste of the coffee that they give to the customers. ▪ Apart from Coffee, from time to time, Tim Hortons offers various other products to the customers. This included the ice creams that Tim Hortons sold from the tie up with Cold Stone Creamery as well the non-coffee beverages that it offered to customers ▪ As Tim Hortons had started initially keeping office people in mind, they were famous for their quick delivery of orders. ▪ Being famous for its freshness as well as on time delivery, Tim Hortons commands high Customer Loyalty.
  • 15. Growth Strategy ▪ Tim Hortons initially made it self a major player in the coffee market in Canada were they captured the major market share with 3500 stores. ▪ For entry into U.S.A, initially they tied up with Wendy’s starting joints where both brands were present in the same building. ▪ After this, the signed a contract with Cold Stone Creamery under which, both companies shall sell the products of the other company via there outlets. ▪ Merged with Burger King in 2014 which has helped it enter the markets where Burger King is already present. Also this has helped with product innovation that has helped it bring more products for its customers.
  • 16. Growth Strategy ▪ Canada: Lead, Defend and Grow ▪ USA: A Must Win Battle ▪ International – Expansion in Gulf Cooperation Council – Position of Potential Market Entries – Validation of International Market Opportunities and Approach
  • 17. THANK YOU Group 6 – Section B
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