Tim Hortons is the biggest Canadian restaurant chain and is the fourth largest in North America. It is famous with its coffee and doughnut. Recently, Tim Hortons plans to open 120 stores in Arab Gulf States to expand its marketplace around the world. “We have got some smaller self-serve operation in Ireland but this is what I believe is our first true export of the brand.” CEO Paul House said at the time. Tim Hortons has already expanded into other countries, but it claims that it will be the first time it really tries to expand the brand.
Tim Hortons is trying to use low cost to enter the market in Arab Gulf States. The reason for it to plan on running that many stores might be to minimize its cost by purchasing a large amount of products. It pays less when buying more. By doing so, profit will increase. Another way to compete with other brands can be using Points of Difference to reveal its relevance, distinctiveness or believability to the consumers. Competitors like Dunkin’ Donuts and Starbucks are also in Arab Gulf States. Therefore, Points of Difference is what Tim Hortons should consider.
Tim Hortons in Dubai
Interesting post Ethan, I’m not surprised that Tim Hortons is trying to expand as it is currently doing so well in North America and Canada based on the statistics you provided. I liked your mention of points of parity considering’ Dunkin Donuts and Starbucks are currently in the Arab States already; Tim Hortons counteracts those points by establishing their own chains there as well which is a positive step for the franchise in gaining brand recognition globally. Your mentioning of the low cost factor is also an interesting point as it brings up economies of scale. I feel this shows that Tim Hortons is on the verge of becoming a globally recognized enterprise in the near future; I cannot wait for the day that I will be able to purchase a Tim Hortons Iced Capp on a hot day in Hong Kong!
Taiwan needs Tim Hortons too!!!!!