Competiti
ve Force
Intensity
(low/medium/hi
gh)
Rationale (limit to one short sentence)
Bargaining
power of
suppliers
Low
Many suppliers (coffee, baked goods),
switching costs low.
Bargaining
power of
buyers
Med
Tim Hortons is already quite budget friendly
when compared to many other coffee/baked
goods stores. Tim Hortons also works on
such a large scale that losing one or two
customers is extremely insignificant to the
company.
Threat of
substitutes
High
There are now a fair amount of nation wide
fast food chains and if one was to switch and
begin to heavily improve and market
themselves as a coffee/sandwich/baked
goods store then customers would have a
harder time choosing Tim Hortons as their
location of choice.
Threat of
new
entrants
Low
On the scale that Tim Hortons operates it
would take an enormous amount of capital
and time to build nation-wide infrastructure
comparable to Tim Hortons. A huge selling
point for the company is its familiarity from
one location to the next; customers know
they can expect the same quality
Rivalry
among
competitor
s
High
More and more fast food chains are starting
to incorporate a café side to their companies
at budget friendly price. There are also many
other companies that are starting to produce
higher quality items.
