Question

1. Provide a SWOT analysis of Tim Hortons.

2. Provide a financial assessment of Tim Hortons.

Answer 1

1. Tim Hortons SWOT Analysis.

First, SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. Strengths and Weaknesses are internal to the company or organization, which can be controlled. Opportunities and Threats are external factors outside the company but affects like socio - economic factors, competitors etc.

Tim Hortons chain was first opened in 1964 at Hamilton, Canada. The first Tim Hortons store were offered only 2 products which are coffee and donuts. Today it became Canada's biggest quick service eatery chain with 5000 restaurants in around 40 countries. Now lets move on to the SWOT analysis.

Strengths

1. Pricing: The product pricing of Tim Hortons appeals to all income groups, thus they price their products well.

2. Continues to be Canadian brand: The chain continues to be considered a very Canadian brand, in spite of change in ownerships a few times. Also they enjoys brand loyalty, every Canadian is loyal to Tim Hortons brand because they maintain their taste and quality on their signature products in spite of numerous changes in the ownership.

3. Transparency: Tim Hortons always has a clear communication and complete transparency in their operations. It always clearly or fully communicates to the customers and the transparency over its operations benefits each stakeholders.

4. Strong ties to the community: Tim Hortons always maintain strong ties to the community through Tim Hortons Children Foundation. Also they always rated as an authentic brand in many surveys because of their honesty and goodness in everything. All this adds brand image.

5. Employee policies: The company spend significant times and money for training new employees so that their service doesn't suffer. Also they have honesty and goodness in their employee policies.

6. Consistent branding: The chain has a consistent branding in all their outlets.

Weaknesses

1. Loss of focus and limited success outside its core business: Occasionally the brand lost its focus on its signature products when it started introducing different items which were not its core area of expertise, affects its overall branding. Also the stiff competition makes them to take a try on new launches like crispy chicken sandwich, but it was a late entry to a market dominated by other brands in that area like KFC.

2. Lack of significant ad buys: Unlike other competitors spending huge amount on making expensive ad buys, they relies on their current customer base which can affect growth.

3. Lack of success in foriegn markets. Though it continues to be one of the top brands in Canada, it has a lack of success in other foreign countries because of offering different selections of food and drinks in other countries which creates a brand confusion.

4. High attrition rate in employees: It has a high attrition rate on its work force when compared to others. They have to spend a lot more on training and development of employees.

5. Employee turnover: Some medias has covered issues of employees like poor wages, longing hours, safety concerns etc.

Opportunities

1. Consumer behaviour trends: Favourable consumer behaviour trends like more women workforce, increased usage of internet etc favours consumption of global food like coffee and donuts.

2. Strong economic times leads to increased customer volume as well as bringing new customers to the brand.

3. Tim Hortons has strong connection with hockey, so there is a great opportunity in connecting with the influencers which might add brand value, to reach more customers.

4. The new taxation policies and environmental policies open great opportunities to Tim Hortons to take advantage of new technology and to increase its profitability.

Threats

1. Stiff competition: Tim Hortons faces stiff competition from other similar chains like Starbucks, McDonald's, Subway, Burger King etc. which offers coffee. So they must be proactive.

2. New drive towards healthy eating options in countries: In most of the countries especially in Canada has a new drive towards healthy eating options. Currently Tim Hortons menu is lacking in this area.

3. Employee issues: Tim Hortons workers have been voicing their issues publically with the company regarding low wages, safety concerns, long hours etc. which affects the brand image by negative media coverage.

4. Technologically backward: Tim Hortons remain behind the technological wave. The long line ups, slow ordering process etc. could affects their customer base.

This is a brief study on Tim Hortons SWOT analysis.