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International Expansion of Tim Hortons (The)

Cas 9 00 2021 001
Langues : 
  • Anglais
Mots clés: 
  • Internationalization,
  • Franchise restaurants,
  • Business model
Année de production : 
2021
Date de publication : 
2021-01-18
Notes pédagogiques incluses : 
Oui
Résumé

Tim Hortons built a successful business in Canada by creating a vertically integrated company working with small-scale franchisees and incorporating its “Canadian identity” in its marketing strategy. The company’s internationalization efforts were much less fruitful, however, with 80% of outlets located in Canada, and just 18% in the United States. In 2014, 3G Capital – a Brazilian-American private-equity firm – acquired Tim Hortons with plans to speed up the company’s internationalization process. The new owner’s attempts to implement cost-cutting measures were quickly met with strong resistance from both franchisees and Canadian consumers and, in 2019, it faced two major challenges: at home, it had to restore the confidence of franchisees and consumers and, abroad, it faced stiff competition from chains that enjoyed a significant head start in new international markets. On top of everything else, it appeared that Tim Hortons’s business model might not lend itself to internationalization.

Discipline principal : 
Affaires internationales
Discipline secondaire : 
Non disponible
Secteurs d'activité : 
  • Biens de consommation
Provenance : 
HEC Montréal
Type : 
Cas traditionnel (Cas décisionnel)
Type de données pour la production du cas : 
Données réelles, publiques, libres de toute matière litigieuse
Lieu de l'événement : 
Canada and world
Année de début de l'événement : 
2014
Année de fin de l'événement : 
2019
Taille de l'entreprise : 
Multinationale
Principaux thèmes couverts

Internationalization

Objectifs pédagogiques
  • Identify key components that can prevent a business model that is successful in a domestic market from being easily internationalized.
  • Understand how a multinational’s position is conditioned by multimarket competition. When competitors are simultaneously present in several countries, competitive responses are more complex.
Concepts et théories en lien avec le cas
  • Key elements defining a business model
  • The interrelationship between the elements of a business model
  • Difficulties inherent to internationalizing some elements of a business model