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Tim Horton

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Tim Horton
1. Describe strategy and the 4 generic strategies in the context of the case company (Tim Horton)

- Business Model: The Company’s main business is franchising and collecting royalty revenues from Tim Hortons restaurants located in Canada and the USA. The franchised restaurants serve a broad menu of drinks (premium coffee, smoothies, tea, espresso-based hot and cold specialty drinks) and food (fresh baked goods, classic sandwiches, wraps, soups, prepared food) (Tim Hortons: Annual Report, 2012).

- The General Strategy in Canada (Tim Hortons: Annual Report, 2012):

Improve guests’ experiences by broad menu of drink & foods, digital menu boards, free-wifi at any restaurant, new payment options, and drive-thru enhancements.
Implement frequent renovation to the restaurants (approximately 300 restaurants in Canada in 2013) to enhance customer experience with designs including seating, lighting, interior and exterior decor
Expansion program will be mainly carried out in Quebec, Western Canada, Ontario and some other major urban areas in 2013
Continue broadening the menu to well respond to market trends and customers’ needs.
Drive same-store sales by launching promotional calendar

-The General Strategy in USA (Tim Hortons: Annual Report, 2012):

Community recognition: Tim Horton as sponsors of local teams and events to improve awareness and strengthen loyalty with all customers.
Continue broadening the menu to well respond to market trends and customers’ needs.
Drive same-store sales by launching promotional calendar
Brand positioning- “Tim Horton. Cafe & Bake Shop”- helps define the brand more clearly in the US market.
The Company’s expansion will be focused on the most developed growth market.

- Four generic strategies (Cost leadership, Differentiation, Cost Focus, Differentiation Focus)

Among the four generic strategies, Tim Hortons is following the cost leadership. Tim Horton’s products are priced the least, compared to other

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