close
test_template

Canadian Tire

download print

About this sample

About this sample

close

Words: 724 |

Pages: 2|

4 min read

Published: Oct 22, 2018

Words: 724|Pages: 2|4 min read

Published: Oct 22, 2018

To help the management of CTC develop better strategies and plans for sustainability, they usually carry out Canadian Tire SWOT analysis. By analyzing the weak points and potential threats of the corporation, it can easily know the areas that require adjustments and how to position itself for success. Defining the strengths and opportunities, on the other hand, enables the company to determine the areas that should be emphasized on for a competitive edge in the market. It is recommended that a SWOT analysis is conducted frequently so the business’ performance is not hurt by the shifting market trends.

'Why Violent Video Games Shouldn't Be Banned'?

Canadian Tire SWOT Analysis

To come up with a comprehensive Canadian Tire SWOT analysis, it is advisable to clearly address each of the four elements independently. The following is an evaluation of the strengths, weaknesses, opportunities, and threats of the Canadian Tire Corporation;

    • Strengths

The Canadian Tire Corporation derives its strength from many aspects. The company has a diverse portfolio comprising, auto parts and services, home products, apparel, petroleum/ gas, and financial services. This has enabled it to become the largest retailer in Canada, with stores across the country and online presence.

Other strengths of the corporation include;

      • Wider and loyal customer base
      • Variety and fast delivery of fast moving consumer goods
      • Greater marketing flexibility, especially in the use of its credit card

On the local retail grid, Canadian Tire Corporation is a renowned brand that has been in existence since 1922.

    • Weaknesses

Like other leading retail chains, Canadian Tire also experiences certain levels of weakness. One is that despite the diverse portfolio, the company remains more focused on the local market. This may have negative impacts on the business in cases of harsh market conditions. Besides, there have also been concerns over the prices of goods and services offered by CTC, which many say have gone up.

Another weakness is the lack of focus on the changing demographics of the Canadian retail industry, caused by the influx of different cultures into the population. CTC has not been keen on meeting the changing trends in the market. Besides, the company’s customer service delivery has also taken a downturn, an aspect that could easily convince many customers to switch to other retailers.

    • Opportunities

Due to the prominence of CTC in the local market, it has a greater opportunity to exploit in Canada for increased sales and revenues. Quite a few retailers in the Canadian market have been acquired by foreign companies in recent years. This means Canadian Tire has the space to use its national pride as a unique aspect in its campaigns. The income levels of many Canadians are on the rise and this is good news to the company. Higher income levels mean many people will tend to buy more retail products and services, impacting increased sales and eventually, revenues. However, it should be noted that buying trends may vary based on the products in demand, prices and quantities bought.

The rapidly changing market trends creates the need for variety, which Canadian Tire can exploit by diversifying its product portfolio to suit different demands.

    • Threats

Despite consolidates sales and financial performance of Canadian Tire, it also faces significant threats. Some of these threats have existed in the market for quite a long time while others are just gaining ground. Besides, there are also other threats that have not taken effect yet but are likely to develop in the future. The following are the key threats facing CTC;

Get a custom paper now from our expert writers.

    • Increasing costs of raw materials, which can potentially slice profit margins
    • Stiff competition from companies showing better quality products and services like Home Depot, Kal-Tire, Sears among others.
    • Increasing labor costs
    • Changing taxation laws

The above evaluation of Canadian Tire SWOT analysis presents a not so bad situation for the corporation. However, the increasing concerns over poor customer service is an aspect that can have dire consequences on sales if not addressed with urgency and efficiency. Although most of the company’s successes are owed to its dominance in the local market, it should consider the various expansion opportunities in foreign markets to grow its customer base even further. With these and more adjustments, Canadian Tire can easily enhance its sustainability and profitability.

Image of Prof. Linda Burke
This essay was reviewed by
Prof. Linda Burke

Cite this Essay

Canadian Tire. (2018, October 18). GradesFixer. Retrieved April 24, 2024, from https://gradesfixer.com/free-essay-examples/canadian-tire/
“Canadian Tire.” GradesFixer, 18 Oct. 2018, gradesfixer.com/free-essay-examples/canadian-tire/
Canadian Tire. [online]. Available at: <https://gradesfixer.com/free-essay-examples/canadian-tire/> [Accessed 24 Apr. 2024].
Canadian Tire [Internet]. GradesFixer. 2018 Oct 18 [cited 2024 Apr 24]. Available from: https://gradesfixer.com/free-essay-examples/canadian-tire/
copy
Keep in mind: This sample was shared by another student.
  • 450+ experts on 30 subjects ready to help
  • Custom essay delivered in as few as 3 hours
Write my essay

Still can’t find what you need?

Browse our vast selection of original essay samples, each expertly formatted and styled

close

Where do you want us to send this sample?

    By clicking “Continue”, you agree to our terms of service and privacy policy.

    close

    Be careful. This essay is not unique

    This essay was donated by a student and is likely to have been used and submitted before

    Download this Sample

    Free samples may contain mistakes and not unique parts

    close

    Sorry, we could not paraphrase this essay. Our professional writers can rewrite it and get you a unique paper.

    close

    Thanks!

    Please check your inbox.

    We can write you a custom essay that will follow your exact instructions and meet the deadlines. Let's fix your grades together!

    clock-banner-side

    Get Your
    Personalized Essay in 3 Hours or Less!

    exit-popup-close
    We can help you get a better grade and deliver your task on time!
    • Instructions Followed To The Letter
    • Deadlines Met At Every Stage
    • Unique And Plagiarism Free
    Order your paper now