Question

1. What's Tim Hortons Leadership strategy?

2. What's their Strategic direction?

Answer 1

Answer 1 : Tim Horton's used cost leadership strategy . The firm has succeeded in capturing market share through this strategy as it helps in reducing the cost and passing these savings to customers in the form of low price.Cost leadership strategy has various benefits such as :

• Cost advantage : A firm is protected against that ill effect of competition if it has a low cost structure for its product or services.
• Capacity to absorb increased price: Powerful suppliers poses a higher bargaining power to negotiate price increases for inputs.
• Price reduction : Powerful buyers posses a higher bargaining power to price effect.

Answer : Tim hoston has strategy direction as follows :

• The strategy applied result in increasing profit by reducing cost which provide a good market share.
• The strategy help in achieving good market share as they are charging lower price for the product
• No one competitors compete with the firm that follows proper strategy direction in logical and systematic manner.