Canadian Tire is a leisure, sports, hardware, and automobile parts manufacturing Canadian multinational company. John William Billie and Alfred founded the tire company in 1922. Today, we’ll discuss the SWOT analysis of Canadian Tire; it outlines strengths and weaknesses; opportunities, and threats that the company has to face; as a business strategy analysis example company.
Products and services portfolio of Canadian Tire
- Home furnishing products
- Leisure
- Sports goods
- Automobile parts
- Houseware
Subsidiaries of Canadian Tire
- Sher-Wood
- Party City Canada
- Helly-Hensen
- Canadian Tire Petroleum
- Marks
- Canadian Tire Bank
- Sports Check
- PartSource
Statistical facts and figures of Canadian Tire
- Annual revenue: 17.810billion CAD (2022)
- Net income: 1.182billion CAD (2022)
- Asset net worth: 22.102billion CAD (2022)
- Employees: 58000
Competitors of Canadian Tire
- Restaurant Brands International
- Magna International
- Richelieu Hardware
- WinPak
- Aritzia Industries
- BRP
- Linamar
- Boyd Group Services
- Gildan Activewear
The SWOT analysis of Canadian Tire would analyze the internal strengths and weaknesses of the company; and external opportunities and threats that the brand has to face. Here’s Canadian Tire SWOT analysis as a business strategy analysis example company as follows;
Strengths of Canadian Tire
Some of the main internal strengths in the Canadian Tire SWOT analysis example company as business strategy analysis are as follows;
Large Network
Canadian Tire has established a very large network comprising 1730 stores across Canada and worldwide. The company has different types of stores, some of which are as follows;
- Gas stations
- Parts stores
- Sports stores
- Mark’s stores
- Tire stores
Diversified Portfolio
Along with the large network of stores, Canadian Tire has developed a very large and diversified portfolio comprising of a wide range of products and goods. They range from hardware, automobile parts, leisure, home furnishing items, and gas stations. The large and diversified portfolio helps the company to target various segments of the customer market with diversified needs and requirements.
Strong Presence
Canadian Tire has a strong market presence across Canada due to its large countrywide network of stores, location points, and gas stations. The large network and strong market presence strengthen the brand position
Marketing & Advertisement
Canadian Tire is highly proactive in running various types of marketing and advertisement campaigns. The company launches various types of promotional campaigns at different events throughout the year. It allows the company to increase its market reach, sales, and conversion rate.
Sponsorships
Canadian Tire has sponsored various mega sporting events over the years. They’re a great marketing strategy and they give significant brand exposure to the company and the brand. Some of the main events that the company sponsored over the years are as follows;
- National Hockey League
- Mosport International Raceway
Finances
According to an estimate, the market net worth of Canadian Tire’s assets is approximately over 22 billion USD. The strong financial position helps the company to take on various types of new projects and handle economic and market disruptions.
Weaknesses of Canadian Tire
Some of the main internal weaknesses in the Canadian Tire SWOT analysis example company as business strategy analysis are as follows;
Limited Market Share
Canadian Tire has a limited market share outside of the Canadian market. Many marketing and business have pointed out that the company is heavily relying on the Canadian market as its main source of revenue and profitability. Over-reliance on one market for sale and revenue is not a good marketing and business strategy.
Opportunities for Canadian Tire
Some of the main available opportunities in the Canadian Tire SWOT analysis example company as business strategy analysis are as follows;
Market Expansion
Canadian Tire should expand its business market into new regions and countries across the world. The North American, European, Australian, Asian, Chinese, and Indian markets hold great growth potential for the hardware and automobile parts business.
Portfolio Expansion
Along with market expansion, Canadian Tire should expand its product portfolio by launching new product lines and further introducing the new products in the existing lines. It would help the company to increase its revenue and profitability.
Strategic Alliances
Canadian Tire should develop strategic alliances and partnerships with other automotive and hardware businesses and companies. The joint venture and sharing of knowledge and expertise would help the company to achieve breakthroughs and cover more market ground.
Threats to Canadian Tire
Some of the main potential threats in the Canadian Tire SWOT analysis example company as business strategy analysis are as follows;
Competition
Canadian Tire is facing tough competition from competitive brands like WinPak, BRP, and Linmar. They have established a strong market share and a loyal database of loyal customers; their market presence is jeopardizing the company’s brand position.
Regulation
Canadian Tire has to comply with the automotive safety regulations of the country. In case of non-compliance would result in the form of expensive lawsuits, settlement fees, and legal fines.
Conclusion: Canadian Tire SWOT Analysis Example Company |SWOT Analysis of Canadian Tire |Business Strategy Analysis
After an in-depth study of the swot analysis of Canadian Tire; we have realized that Canadian Tire is the world’s leading retail chain hardware and automobile parts store company. If you are learning about the Canadian Tire SWOT analysis example company; then you should keep in mind the abovementioned internal strengths and weaknesses; external opportunities and threats as brand strategy analysis.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
