Competitive Advantages Of Tim Hortans In Chinese Market

News:It is in News that Tim Hortans One of the largest North America Quick Service Restaurant Chain to enter in to the Partnership with Cartesian Capital Group to develop its 1500 Restaurant Brand in all over china in next ten years. Looking at Canadian’s Chinese Community Response towards Tim Hortans can bring it brand to china.

Tim Hortans is a Multinational fast food Restaurant known for its Coffee and Donuts. It the Canada’s Largest quick service restaurant chain have its Headquarter at Oakville. Tim Hortans also have a Children Foundation which serve youth from Low Income Family, it also runs programs like youth Leadership program and community leadership programs.

Coffee Market in China

China has a Long History of Tea Drinker. Earlier only 10% of Market in China was a Coffee Market. But as per the Coffee International Organization the consumption of coffee is increase to 16% year & reach to 2 million bags in 2014. China is believed to 17th largest coffee market in World. The Rise of Chinese middle class & overall better standard of living create opportunity for other coffee market to enter Chinese market. The Product Latte is success in Chinese coffee market as Chinese consumers have 0 interest in beverages without sugar & milk & as Dessert Pancakes are queen. The Largest Coffee production in China is Taken Place in Yunnan Province. Earlier the Luckin coffee the home-grown china coffee brand was the firm running coffee business single handed but as completion increases many new coffee brands enter china market & Currently Starbuck is the Ruling Coffee Brand in Chinese Market.

Why China?

“China’s Population & Vibrant Economy represent an excellent growth opportunity for Tim Hortans in coming year” said by Alex Macedo - Company President. Young People and White-collar employee increasingly drink coffee & is helping coffee industries for their strong growth. Due to change in economy Earning Capacity have change the life style of people and people tend to improve their standard of living and tend to spend more on wealth.

Brand Awareness: Tim Hortans do have the brand awareness it has the Value with Rare effect in china as it is 1st time that Tim is opening in china, though it is organized it is easy to imitate as other firms also have brand awareness in china.

Number of coffee house: It would be a Competitive Equality because as Tim’s is not worse than its Competitors as based on current news Tim Hortans is planning to open 1500 store in china which is valuable at early stage but its not Rare as Shops like Starbucks, Mc Donald are available on every next street.

Product Differentiation: It can lead company to a Temporary Competitive Advantage as Tim Hortans is Planning to Launch Congee & Matcha along with its signature item. This New item is launch keeping in mind the traditional taste of Chinese people but it’s not hard to imitate as competitors may copy this strategy and & can gain a goodwill in market though it is well organized as per the china’s preference.

Cost Leadership: Here Company can Face Temporary Competitive Advantage as though Starbuck offer coffee at very high cost, but other brands can be a threat to Tim Hortans this area as they are also pursuing a reasonable low-cost strategy. Just like the local coffee shop of china i. e. Lukins; so cost leadership is valuable & Rare for short run but as it is imitable it may face failure in long run.

Community Involvement: In this resource the company face unused Competitive Advantage as Tim Hortans do run many Social activity Camps & program such as Children Foundation Camp and Youth Leadership program, but this strategy is also used by many other coffee shops for their social involvement though the service & programs which Tim Hortans provide is different from that of other so it has a value but its not rare it is imitable & well organized.

Partnership: Tim do have value as it is planning to open in china in partnership with Cartesian Capital Group which will help them in their initial stage but it’s not rare as there are many other firms who have enter china in partnership.

Promotional Activities: Tim Hortans do many promotional activities like it give free coupons to students on their orientation so that they can get to know with famous coffee chain of Canada but it’s not rare as company like Starbucks in china also do many such activities and many firms can copy this idea in hope of success but Tim Have manage to hold on their Chinese customer in Canada & Tim Hortans is Much More appreciated by Chinese Canadian people & this also one reason to open Tim Hortans in china market.