Introduction
Canadian Tire Corporation Limited (Canadian Tire) is a retail store that sells a large assortment of goods and some services with a number of stores across Canada. The company also has a wide variety of subsidiaries in many different types of industries. The purpose of this assignment is to gather and analyze research on multiple business aspects of this well-known Canadian corporation. A greater understanding of this business’s activities through its net profit, how it has changed over time and predicting where the company is headed in the future.
Company Description and Analysis
Canadian Tire is the largest national retailer of sporting goods in Canada. The company provides products in the categories of automotive, living, fixing, playing and apparel. Along with a unique assortment of products, the company offers reliable credit card services to its customers. Canadian Tire has over 425 locations across Canada, along with its subsidiaries of Forzani Group Sports Ltd and Marks Warehouse. The vertically integrated company remains highly competitive in the Canadian market with a profit margin of $735.9 million (Canadian Dollars) according to the last annual shareholders report of 2015. It appears that the company is profitable, and therefore, does not have to consider expansion into the United States. Canadian
…show more content…
Tire has failed several attempts in the past from entering the US market due to high levels of competition. The Canadian Tire was able to yield a net profit of C$735.9 million in 2015, C$639.3 million in 2014, and C$564.4 million in 2013 .
With the slow and steady increase in profits every year, it is obvious that the company will continue to manufacture products for the population. However, in the year 2016, Canadian Tire suffered a quarterly loss of over C$100 million . On behalf of the shareholders, the former CEO, Stephen Wetmore, was reinstated in order to formulate new long-term focused strategies and to help the company adapt to the digital future ; The CEO change potentially may be the reason for the quarterly loss (See Appendix
A). Canadian Tire envisions the future success of the company being reliant on e-commerce, allowing the company to further provide their products to consumers online. In addition to e-commerce, the Board of Directors demand that the corporation rapidly evolve to meet the expectations of its consumers and shareholders . Also, the company aims to improve their selling of tires, gas, clothing, and financial services in order to reach their estimated target of attaining 8-10 % annual EPS growth with Returns on Invested Capital of nearly 10% . Conclusion Canadian Tire is successful in the Canadian market because it is seen as a conglomerate corporation as it has a large variety of different subsidiaries in a less competitive market, in comparison to the United States. Canadian Tire is currently expanding to accommodate their customers online through e-commerce. The corporation is seen as being successful by utilizing their multiple enterprises throughout different times in the year. When one subsidiary is not as successful at a given time, Canadian Tire is able to rely on their other subsidiaries to contribute to the profit and well-being of the corporation.
During 2014 there was an ethical dilemma that occurred at Canadian Tire. There was an employee named Samantha and she held the position of a Supervisor at Canadian Tire. Canadian Tire would give out Canadian Tire money to their clients depending on how much they have spent at the store and this was basically a marketing strategy for Canadian Tire whereby the clients could use the Canadian Tire money to purchase merchandise at the store. Samantha was in charge for restocking the Canadian Tire money at all times. Every time Samantha restocked the Canadian Tire money she would always withdraw few dollars out for herself and make adjustments on the paperwork and she would go to the Canadian Tire Gas station and purchase gas for herself. She went
Target’s first foreign store investment was in Canada; American stores look to Canada as their first foreign investment because the differences between the two countries are relatively minor. Other stores that have expanded to Canada include Wal-Mart, and Sears, each of these companies proved to be prosperous in Canada. Canada is one of the wealthiest countries in the world and is dominated by the service industry, Wawa would have no trouble fitting into the culture Canada has and dominating the market as they do here, in the United States. After reading about Canada and Wawa, we have realized this move could only benefit Wawa and help their reputation and build their company.
Peak Garage Door Inc. has set a goal to increase their sales for 2004. Garage door industry is expecting a growth of 2.4% while the management of Peak is looking to increase company’s sales 26.4%. The company currently has 50 exclusive dealers and 300 non-exclusive dealers. Management has three proposals in front of them. The first suggestion is to increase the number dealers in their existing markets. The second recommendation is to develop an exclusive franchise agreement with existing non-exclusive dealers. The third recommendation is to decrease the number of dealers and focus company’s resources on increasing support for the existing dealers. Of course there is an option for them to leave everything as it is. My suggestion is to go with the second recommendation due to the fact that exclusive dealers produced 70% of company’s sales and non-exclusive dealers contributed only 30%. In order for Peak Garage Doors Inc. to reach their sales goal for ‘04 they will have to gain more exclusive dealers since they contribute much more profit to the company.
Canadian Tire’s positioning is adapting to the needs of customers and approaching new ideas. It’s also a very well know and establish organization in Canada.
The literature reviewed to produce this report consisted of different online trusted sources, and official data from Loblaw Canada Limited website. Tangible and intangible assets have been taken into consideration, as well as the company’s stated goals, vision, mission and an overall structural review of the company. In order to properly conduct the analysis of Loblaw Canada Ltd., some well recognized tools were used, such as Porter’s Five Forces, SWOT analysis and PEST. Online journals, additional publications, and Loblaw’s annual reports were consulted throughout the report producing
Target, a high-end discount department store, hoped to continue expanding and adding to the company’s 1,752 stores, by purchasing 200 Zellers stores, located in Canada. One of Target’s, longtime goals was to expand into Canada , and after a decade, the company took a jump across the border (Shaw, 2011). Because many thousand Canadians hold a Red Card, Target’s reward card, Target assumed this would be a successful expansion, increasing the amount of US brands that encompass Canada’s market. Target spent a year converting the Zeller stores, altering and renovating them to transform them into Target Canada, a subsidiary of Target (Shaw, 2011). They opened 124 stores in locations all over Canada, hiring back only one percent of the former Zellers employees, desiring to make a fresh start for the department store chain (Target Refused Zellers Workers).
Walgreens is a substantial affluence in the United States, as it is one of the leading drugstore chains in the market. Recently, we have looked into bringing the company to Canada in hopes of attaining the same or greater level of success. Walgreens in Canada could be the perfect fit, as the 24 hour availability along with the “one stop shop” experience and convenient prices would be beneficial to the many people living there. The drugstore and pharmaceutical market, location, and culture are all taken into consideration in order to establish if the company would be successful in Canada.
In 2013, Target acquired 124 locations in Canada from a failing retailer called Zellers (Wahpa, 2015). Target began to experience major problems. The Zellers store locations were in awful locations, which was one of the reasons Zellers was failing. Target began to suffer from supply-chain problems that yielded empty shelves and high prices, and it added up to a downright disaster. According to Taylor & Ho (2013) Canadian shoppers were disappointed with prices above those it charges in the United States, and shoppers would rather go to Canadian Wal-Mart. Target began losing millions of dollars, CEO Gregg Steinhafe turned his attention away from Target Locations in the United States and focused his attention on the Target locations in Canada. A year after Target had begun operating in Canada they lost over one billion dollars (Taylor & Ho, 2013). In January of 2015, Target Canada was placed under bankruptcy protection, underscoring the severity of the mistake by one of the largest retailers in the
Canada Goose was once a brand that could only be found through certain retailers. That all changed when the luxury outerwear brand opened its first two standalone stores in Toronto and New York in fall 2016 after the success of their e-commerce store. Canada Goose plans to launch 15 to 20 stores by 2020 and currently has two Canadian locations in Toronto and Calgary. This strategic market entry of brick and mortar enabled the brand to remain exclusive to where there is a large concentration of brand supporters and where there are consumers who indulge in high end outerwear brands such as Mackage
Canada Post is one of the largest Crown Corporations. In this report, we have to determine the organization structure and objectives of the Canada Post followed by the audience and market segment being targeted by the organization along with identifying the key success factors and the type of dealings the organization has with the government. With the worldwide growth of Ecommerce Sales, the demand for residential delivery is also increasing thus, Canada Post is operating as primary postal operator all over Canada headquarter in Ontario offering a full range of delivery and fulfillment services to customers. This paper will emphasis on the current environment and capabilities of Canada Post necessary to evaluate its position
In addition, there is the country’s largest distribution center in Quebec. Halifax imports approximately 25 % of Canadian Tire’s shipment; on the other hand, Vancouver imports rest of them (Ouellette, 2010, p2).
Some core competencies that must be exploited are: Brand Kmart is an existing well-known and trusted national brand in USA Kmart has private label and designer clothing that is well endorsed Infrastructure Kmart has a large number of well-located, low-cost, leased stores in urban far away from competitors through out the country ( Appendix B ). Staffing Confidence by the market in Kmart is created by the achievements of its staff and management. With the turn-around strategy in place, new blood has been put into the top management structures. In any renewal there will be retrenchment as unprofitable stores are closed. This can be used as an opportunity to retain and move high performing staff to where they are needed and to get rid of non-performing staff. Anderson the chairperson of Kmart is well supported by Wall Street and the board of Directors. These new staff members enter the company with needed skills to address problems in certain areas that previously were poorly managed such as inventory control and merchandising. Store locations, layout and Performance Stores conveniently located away from competitors like Wal-mart and Target therefore less to compete for customers face-to-face. There are 250 non-performing stores who have already been identified as being more cost effective to close than continue with running costs. Expertise exists in-house for the planning of store layout and appearance to meet different customer segments. This concentration of effort will enable focus on key areas Technology Kmart has already invested in good retailing systems. The system can be use to control inventory, supplier payments, track customer buying and monitor income versus profit margins across all stores. Research and Development The planning department is well established and in cross-functional to provide various perspective. The planning department to ensure that strategies at all levels are executed can further use the access to past data and knowledge of changes in buying patterns. Financial Backing JP Morgan Chase has agreed to support Kmart to avert the current threat of closure due to bankruptcy.
For those who are not involved or interested in what is going on in the motorcycle racing community, the positioning of Discount Tire may not be clear at all based solely upon this commercial. Whereas, those are in the psychological segmentation may attribute Discount Tire with being a leader in the automotive tire/wheel industry. Reasoning behind this would include the fact that their sponsorships cover two exceptional riders who seem to perform very well within the racing series week in and week out, as well as for the simple fact that they are the only company amongst their competitors to be advertising directly to this specific target audience. Through these advertisements, consumers with sparked interest may visit Discount Tire store locations or their website in which the consumers would venture and discover what Discount Tire is all about such as: customization and creating pleasurable experience for their consumers. When I think of Discount Tire’s number one
The purpose of this presentation is to provide a comparative analysis of business activities of two well-known representatives of the US retail industry, Target and Walmart. My research is focused on a business strategy of these largest and most experienced American merchandising companies; particularly, on their activities in Canada. Based on the data collected from the various sources, I would like to detect, analyze, and demonstrate the obvious causes that have lead to a catastrophic failure of Target in its unsuccessful attempt to win a Canadian market.
There has also been an increase in sales coming from dealerships in the recent years for tires. Bridgestone has the largest plant capacities among their competitors. The service category that is bringing in the most profits for automotive servicing sales is alignment corrections bringing in 68% of profits. This is followed by spark plug, ignition and engine repairs which are bringing in 63% of profits. (Ulrich, pg.