HISTORY of the more than 57,000 Canadians who work


Canadian Tire History Canadian Tire is the store
that grew along with a nation. Founded in 1922 as a tire and automotive
business, Canadian Tire now has over 1,200 general merchandise and apparel
retail stores and gas stations – along with a financial services and banking
business – offering a unique mix of products and services that meet the needs
of everyday life in Canada. With the support of the more than 57,000 Canadians
who work at Canadian Tire, our company has become one of the country’s
longest-standing and most-trusted brands.

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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.


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;


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;

Ø  Wider
and loyal customer base

Ø  Variety
and fast delivery of fast moving consumer goods

Ø  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.



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.


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 the recent years. This means Canadian Tire has the space
to use it 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.


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;

Ø  Increasing
costs of raw materials, which can potentially slice profit margins

Ø  Stiff
competition from companies showing better quality products and services like
Home Depot, Kal-Tire, Sears among others.

Ø  Increasing
labor costs

Ø  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 effectively. 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.

Canadian Tire SWOT Analysis









Inter-corporate relationships



Market position

Business system





The Canadian Tire
Corporate Home Office is situated in the heart of Toronto which allows our
employees to be part of Canada’s business nucleus. The growth and success of
Canadian Tire can be credited to the loyalty of the dedicated employees and the
perfect locations of stores. Although employees at Canadian Tire Corporation do
business in a global marketplace, it maintains the corporate headquarters in
Canada to ensure that they have the ability to create their own
roadmap. It provides easy accessibility to the customers that helps to
save their important time.



Canadian Tire’s wide
range of automotive parts and accessories, hardware, home and leisure products
are distributed to Canadian Tire Associate Stores from our distribution centres
in Brampton, Ontario. The distribution Centre employ nearly 2,000 people. Each
year, they move approximately 160 million units of product, sourced from
3,400 suppliers, to the Canadian Tire stores across the country.



We’re reducing the amount of paper we use in Canadian Tire’s
marketing materials and including more recycled content in our flyers. In 2008
our flyers contained about seven per cent recycled material, and increased to
approximately 55 per cent in 2009. We’ve also developed new procurement and
usage guidelines for our paper suppliers to help ensure the sustainability of
forests and natural resources. The guidelines promote sustainable forest
management through the purchase of paper originating from third-party,
independently certified forests; efficient use of wood fiber; efficient
resource utilization; social responsibility; efficient use of paper; climate
change and energy conservation initiatives; forest conservation;  paper recycling; and, continuous improvement




Core capabilities Management has identified several
core capabilities that differentiate the Company and its businesses and
operations from those of its competitors and add value for its customers. These

v  Strong
brand equity

 The Company
is committed to being a “brand-led” organization. In recent years, the Company
has invested in a variety of innovative and brand-enhancing awareness programs
to reinforce the relevance of its brands for customers today and to support
their relevance in the future. Recognizing that the Company’s brand is its most
valuable asset, the Company established a Brand and Values Committee of the
Board, whose mandate includes oversight of the effectiveness of strategies to
maintain and enhance the brand. Canadian Tire is one of the most recognized and
trusted names in the Canadian retail landscape. Canadian Tire stores and gas
bars as well as many of the products offered by Financial Services all share
the Canadian Tire “red triangle” logo, leveraging the loyalty and trust
summoned by the Canadian Tire brand. Part of the Company’s brand strategy
includes the development or acquisition of high-quality private-label brands

v  Innovative

 The Company
has built a reputation as an innovator by introducing new or innovative
products, programs and services that address the everyday needs of customers.
In 2013, Canadian Tire launched its “Tested for life in CanadaTM” campaign with
the launch of the Coleman tent Carwash ad. This was the first of many ads in
2013 where Canadian Tire reinforced its commitment to rigorous testing,
including testing by its customers, to bring innovative high-quality products
to its customers. The “Tested for life in CanadaTM” campaign continued to
expand in 2014, with many products being tested with a panel of 15,000
Canadians. TV ads reinforcing Canadian Tire’s commitment to rigorous testing
and bringing innovative, high-quality products to its customers were featured,
including Greenworks Lawnmowers and Chainsaws, MAXIMUM Titanium Drill Bits, and
the award-winning Motomaster Eliminator AGM Battery Ice Truck campaign. There
will be a continued focus on the “Tested for life in CanadaTM” campaign through
2015 as the broader program officially launches. Sport Chek continues to be a
leader in the Canadian marketplace in the integration of technology and sport.
In 2014, Sport Chek introduced the 94Fifty’s Sensor Basketball, the world’s
first smart basketball that has internal sensors that measure the strengths and
weaknesses of its handler and provides instant feedback.

v  World-class
customer contact centres

 The Company’s
commitment to creating lifelong relationships with its customers is reflected
in the success of its customer contact centres at Financial Services. The
contact centres continue to be recognized for their commitment to customer
service excellence, earning four Contact Centre of the Year titles and eight
Customer Satisfaction awards over the past decade.




VALUE: the strong brand equity of
Canadian Tire create the value of its products and services all over the

RARE: Canadian Tire was the first
company who launched the “Tested for life in Canada TM” campaign, where
Canadian Tire reinforced its commitment to rigorous testing, including testing
by its customers, to bring innovative high quality products to its customers.



World-Class Support
Be inspired to perform at your best every day. With cutting edge store design,
digital marketing, e-commerce and the use of leading-edge customer analytics,
you’ll be set up for success in the competitive retail industry. In addition,
our award-winning call Centre and state of the art distribution centres help
you respond to the changing expectations of consumers.



 In the last
five years, most Canadian Tire stores have been refreshed to the Smart Store
format. This concept features a “racetrack” floor plan and incorporates better
signage and more logical product adjacencies, added features such as “price
lookup” kiosks, customer assistance stations and the latest technology
throughout the store. An evolution of this store concept includes an expanded
Living category footprint with enhanced assortments, inspirational displays and
improved product adjacencies, as well as the Pro Shop (store within a store)
concept in Hunting and/or Fishing categories.



It is growing network of interrelated business with
more than 1100 general merchandise and apparel retail stores and gas stations
in addition to a major financial services provider and a federally chartered





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