With the investor euphoria surrounding the IPO of Tim Hortons, I couldn’t help but write some thoughts about such a great Canadian institution. After all, what other firm holds such a tender place in our collective nationalistic hearts that the Royal Canadian Mint would launch its Remembrance Day commemorative quarter exclusively through Tim Hortons.
But Professor Goldberg, this blog is about Telecom Trends. How is Tim Hortons relevant?
Good question – and yes, this will be on the final exam. Tim Hortons is an example of how a Canadian icon can be acquired by a multi-national firm and yet retain its special character and keep its roots. This view, of encouraging foreign investment in Canadian telecommunications, is shared by the Telecom Policy Review panel in its report.
Tim Hortons impresses me with its success in a fiercely competitive market, a market that has seen entry from major global competitors, transforming its product line and implementing technology change. Sounds like the telecom business.
There are lessons to be learned from Tim’s place. Why did Tim Hortons succeed while Krispy Kreme battles accounting issues and Atkins diets? Beating Country Style and commanding their turf while letting Starbucks and others go after a different segment.
They have created new products, liked Steeped Tea last year, hot smoothies, yogurt and berries and other ‘healthy’ choices while continuing to dominate the market for coffee and donuts. On my drive home from the cottage, a drive-through clerk at one of their competitors asked if my dog would like a Timbit. Their brands have become generic terms among Canadians.
Succeeding in a commodity business – I think more of us in the telecom industry should take a look at how at least one company has done this. I’ve always got time for Tim Hortons.