Tim Hortons Case Study

Introduction The Chinese market has demonstrated substantial steady growth, doubling their real GDP in less than a decade. Canada, being a fully developed market, grows steadily but slowly, at 4.4%. This suggests that the market for Tim Hortons Inc. has reached its saturation point in Canada and seeks growing economies in order to compete effectively with competitors. The following review will provide details around the Chinese market and its capabilities, drawing a comparison to both THI’s own growth in Canada but, comparing to food industries that have already been introduced into the Chinese market.
Historical Reference and Lessons Learned
In the last ten years, the number of multicultural companies has been increased in the business

Starting in Hong Kong may be shown to be a wise choice; “Coffee sales grew by 4% in off-trade volume terms to reach 4,551 tons in 2015. This was mainly because consumers’ interest in coffee culture continued to rise in Hong Kong in 2015, resulting in the consumption of coffee still being strong” and that “Coffee sales are expected to grow by a 3% off-trade volume CAGR over the forecast period, which will be slower than the 4% off-trade volume CAGR of the review period.” (EuroMonitor’s Country Report 2016). As such, we can safely assume there is both a market for coffee in Hong Kong and that there is an increasing demand opportunity for market entry. As for consideration of its Purchasing Party Power; “The International Monetary Fund announced Wednesday that China's economy, when measured by purchasing power parity (PPP), surpassed that of the United States to become the world's largest” (SCHIAVENZA, M., 2014) with China ranked as number one in GDP as of

” (Smith, N., 2015) China’s numbers, always prone to subjectivity, have begun crumbling with their current stock market system. As such, some have begun to question the actual power of the Chinese economy and if it’s GDP is really just an artificial number. Regardless, coffee is a staple of a per capita GDP, so when looking into that we see a clearer picture of China’s actual ability to purchase goods. Currently, rounded off; the per-capita real GDP of China is about 7k, a factor of 7 times lower than Canada's. While this may seem crippling to sales when the average person only has about 7-grand to their name, we have to reckon China’s biggest resource; people. China has a population of 1.357 billion. While the average Canadian has 7 times the PCGDP of the Chinese, China has 39 people for everyone Canadian. To put this into perspective; for every Canadian child, there is a classroom of Chinese children and a teacher. This is the spectrum of spending situation, in which China makes up for the amount of disposable income per person through sheer