Image source: google images

I agree with Eric that the Tim Hortons – Burger King Merger is advantageous for both companies, but not on the premise of selling similar products in each chain. This article confirms that the top executives of each company do not plan to make changes to the brand – “no Tims’ coffee in Burger King and no Whoppers at Times.”

Image Source: Google Images

In my opinion, the problem with serving similar products in Tim Hortons and Burger King restaurants is it weakens each companies value proposition. It would also reposition each company in the consumer’s mind. For instance, Tim Hortons’ food is perceived as being healthier than Burger King, which contradicts the need the company satisfies.  This could be considered a risk of merging.

However, both companies benefit by achieving economies of scope with more access to distribution channels. This is especially important since the main reasons for the partnership is “growth … and [bringing] beloved brand[s] internationally.” Knowledge is power, and each company has an understanding of the markets they have operated in. For instance, the merger allows Tims to share strategy, market experience, and consumer expertise so Burger King can emerge successfully into the Canadian market, and vice versa.