Analysis Of Tim Horton's And Starbucks: Competitive Rivalry

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Competitive Rivalry:
The threat of competitive rivalry in this industry is high as it is considered to be mature with a high level of concentration. Tim Horton’s and Starbucks collectively add up to 75% of the market share. The remainder of the market share is a fierce tug of war between locally owned “third wave” artisan coffee shops. In addition to all the aforementioned coffee focused businesses, the broader food service industry also offers competition in the form of fast food chains and restaurants.
Supplier Power:
The supplier power is low. The largest expense that the industry incurs is that of the food and beverages sold by wholesalers. Due to the price of food rising over the years, operators are not able to transfer the cost of the
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