Tim Horton S Case Study
Executive Summary
Primary Problem:
Burger King must determine if the expansion of Tim Hortons into US markets is necessary for the successful growth of the company.
Alternative Solutions:
1. No expansion of Tim Hortons into the US market
2. Expand Tim Hortons into the US market as a stand alone company
3. Expand Tim Hortons into the US through presence in Burger King restaurants
Recommendation:
In order for both Burger King and Tim Hortons to reach their maximum growth potential, it is necessary for the Tim Hortons brand to expand into new US markets. In order to do this, the company should implement a combination of alternatives 2 and 3. The main justifications are as follows:
Limited opportunity for expansion in the Canadian Market since Tim Hortons already has dominant market share.
Large mount of growth potential in US markets
Large population of US provides the potential for a substantial customer base
Tim Hortons can leverage Burger King’s international success in order to eventually expand over seas.
Primary Problem:
Burger King must determine if the expansion of Tim Hortons into US markets is necessary for the successful growth of the company.
Secondary Problems:
Tim Hortons is relatively unknown in the US market, even where they have a presence.
Difficult to penetrate the established US market.
Large US companies are highly competitive and have more capital.
Tim Hortons currently only has regional presence in certain markets in the Northeast and Midwest of the US.
Previous companies in similar situations were unsuccessful in cross-border expansions.
Since Tim Hortons has already thoroughly penetrated the Canadian market, domestic expansion could be limited.
Cultural nuances can result in different customer demands and expectations for service, quality, and price, etcetera.
Tim Hortons brand success strongly linked with Canadian culture, products are not differentiated, but they are able to capitalize on Canadian
Primary Problem:
Burger King must determine if the expansion of Tim Hortons into US markets is necessary for the successful growth of the company.
Alternative Solutions:
1. No expansion of Tim Hortons into the US market
2. Expand Tim Hortons into the US market as a stand alone company
3. Expand Tim Hortons into the US through presence in Burger King restaurants
Recommendation:
In order for both Burger King and Tim Hortons to reach their maximum growth potential, it is necessary for the Tim Hortons brand to expand into new US markets. In order to do this, the company should implement a combination of alternatives 2 and 3. The main justifications are as follows:
Limited opportunity for expansion in the Canadian Market since Tim Hortons already has dominant market share.
Large mount of growth potential in US markets
Large population of US provides the potential for a substantial customer base
Tim Hortons can leverage Burger King’s international success in order to eventually expand over seas.
Primary Problem:
Burger King must determine if the expansion of Tim Hortons into US markets is necessary for the successful growth of the company.
Secondary Problems:
Tim Hortons is relatively unknown in the US market, even where they have a presence.
Difficult to penetrate the established US market.
Large US companies are highly competitive and have more capital.
Tim Hortons currently only has regional presence in certain markets in the Northeast and Midwest of the US.
Previous companies in similar situations were unsuccessful in cross-border expansions.
Since Tim Hortons has already thoroughly penetrated the Canadian market, domestic expansion could be limited.
Cultural nuances can result in different customer demands and expectations for service, quality, and price, etcetera.
Tim Hortons brand success strongly linked with Canadian culture, products are not differentiated, but they are able to capitalize on Canadian
Bibliography: Hemmadi, Murad . "Blast from the past: A timeline of the Tim Hortons-Wendy 's merger." Canadian Business. N.p., 25 Aug. 2014. Web. 1 Oct. 2014. <http://www.canadianbusiness.com/companies-and-industries/tim-hortons-wendys-merger-lessons-burger-king/>. Shaw, Hollie . "Tim Hortons found brand truth early." Financial Post Business Tim Hortons found brand truthearly Comments. N.p., 6 Oct. 2011. Web. 1 Oct. 2014. <http://business.financialpost.com/2011/10/06/tim-hortons-found-brand-truth-early/>. "Our Pillars." 2013 Tim Hortons Sustainability and Responsibility Report. N.p., n.d. Web. 29 Sept. 2014. <http://sustainabilityreport.timhortons.com> Appendix: 1) Retrieved from: http://www.macleans.ca/economy/business/why-tim-hortons-needs-burger-king/