Get instant access to this case solution for only $15

Tim Hortons Inc Case Solution

Solution Id Length Case Author Case Publisher
1757 1118 Words (6 Pages) Karin Schnarr, W. Glenn Rowe Ivey Publishing : W14568
This solution includes: A Word File A Word File

Tim Hortons Inc. was one of the largest quick-service restaurant chain located in America and Canada. It had immense consumer loyalty due to the focus on corporate social responsibility and fulfilling the customers’ needs. However, the problem was the transition in the food trends across the countries which at one hand, saturated the market, and on the other hand, reduced the demand for restaurant food due to the increased priority given to organic and healthy lifestyle of the contemporary world. Due to this, Tim Horton had to maintain its competitive edge in the market and was faced with the choice of being acquired by 3G Capital, where the latter would enable it to expand internationally, which had been an agenda for the food chain.

Following questions are answered in this case study solution

  1. Introduction and Problem Identification

  2. Analysis

  3. Strategic Alternatives

  4. Recommended Action Plan

Case Analysis for Tim Hortons Inc

2. Analysis

Tim Hortons can be seen to be committed to the value-based theory of strategic management, whereby the creation of customer value depicts its success and profitability (Slater, 1997). This is depicted by the increasing number of store locations of Tim Hortons to capture more market share and expand, as well as increasing its existing portfolio in terms of products. From beverages to breakfasts and dinners, Tim Hortons sought to cater to both the millennial as well as the older generation in order to expand its clientele. By working on product innovation, Tim Hortons was committed not just to retain its market but also attain new customers. The resource based view also holds applicable to Tim Hortons. This postulates that the ability of the firm to develop and foster distinguishable and distinct capabilities significantly enhances its ability to adapt to the changing environment and move beyond mere survival prospects (Esteve-Perez, 2008). As can be seen in the case study of Tim Hortons Inc., there was a significant focus on research and development in terms of product innovation. New cuisines were tried, and better raw materials for products were invested on in order to gain and maintain the competitive edge in the highly saturated market of the restaurant industry in North America and Canada. Competition faced from prominent brands like Starbucks, McDonalds etc. had to be thwarted off by offering superior quality as well as convenience to the modern customer as per the demand. Furthermore, marketing and advertising the brand was also given considerable attention to attract new customers and build brand equity. Electronic and print media both were utilized for the purpose, from televisions to posters to increase awareness. The survival-based theory is to adapt in accordance with the changing environment (Boxall, 1996), It is also applied to the case as to achieve its aim of international expansion and existing intense competition in all product categories, Tim Hortons Inc. was focused on the acquisition by 3G Capital to increase significantly its market share and customer base, hence increasing revenues and net incomes. These theories of strategic management posit how Tim Horton is effectively functioning to achieve its mission and vision and organizational objectives (M.A. & O.A., 2011).

3. Strategic Alternatives

A myriad number of strategic alternatives were available to Tim Hortons Inc. One alternative was to focus and emphasize on same-store sales. This had previously not been performing well, and there was negligible growth. The food trends and consumption patterns of the masses were changing and thus there as a need to adapt and take advantage of those alterations. Furthermore, the branding of Tim Hortons Inc. varied between Canada and the United States, with it being significantly popular in the former and not much so in the latter. Thus the alternative was to build on brand equity in both the existing markets through advertising and marketing etc. to promote brand awareness as well as expand the product category to fill the gaps existing in the market by providing a wide range of products. This is a good alternative as it requires product innovation and equity nurturing for growth and increase in revenues.

Get instant access to this case solution for only $15

Get Instant Access to This Case Solution for Only $15

Standard Price


Save $10 on your purchase


Amount to Pay


Different Requirements? Order a Custom Solution

Calculate the Price

Approximately ~ 1 page(s)

Total Price


Get More Out of This

Our essay writing services are the best in the world. If you are in search of a professional essay writer, place your order on our website.

Essay Writing Service
whatsapp chat icon

Hi there !

We are here to help. Chat with us on WhatsApp for any queries.

close icon