As discussed in a previous lecture, Tim Hortons is planning to expand its chain by establishing shops in new foreign markets such as Dubai. After weighing the cost and benefits of this strategic plan, it was concluded that this was a profitable investment because the modern Middle Eastern City of Dubai will expose Tim Hortons to tourists in numerous countries. In fact, according to Tim Hortons’ CEO, Paul House, the new location in Dubai represents “the first true export of the brand”.
Tim Hortons’ opening in Dubai created an online buzz among homesick Canadians. Loyal Canadian customers waited in long lines for a taste of the store’s trademark, the “double double”. In addition, with millions of tourists in Dubai each year, the populated city will help Tim Hortons attract consumers from countries such as Russia, the store’s next target.
Despite successful investment in a foreign market, Paul House has no intention of globalizing the brand in the coming year. Announced earlier, House plans to focus on building a stronger brand image in the U.S. market. As one of the first major chains to open up locations on university campuses, the CEO hopes to implement this strategy on universities located in America.