Canadian Tire Corporation

Business History:

The business’s industry and sector

Canadian Tire is part of Automotive, Sports and Leisure, and Home Products industry.

Their main objectives

"Improving the Customer experience."

How they started

We are a proud Canadian company employing 57,000 people under one of the nation’s most-trusted brands – the red triangle.

Founded in 1922, Canadian Tire Corporation is a growing, diverse network of businesses with more than 1,200 general merchandise and apparel retail stores and gas bars, as well as a major financial services provider and a federally chartered bank.

Canadian Tire Retail is our main engine of growth and with one of Canada’s largest and newest store networks and near-universal brand awareness, we are focused on delivering excellence in value, customer service and innovation.

When they started

Canadian Tire started in 1922.

How they have grown over the years

Canadians are aware of our brand; they shop in our stores at least once a year; and, 90 per cent of Canadians live within 25 km of a Canadian Tire store. Canadian Tire is one of the most-shopped general merchandise retailers in Canada.

Who runs their business

Stephen Wetmore       President and CEO, Canadian Tire Corporation, Limited

G. Michael Amett       President, Canadian Tire Retail

Glenn Butt                  Executive Vice President, Customer Experience and Automotive

Their main product(s) or service(s)

Canadian Tire Corporation, Limited offers goods and services that meet life’s everyday needs such as Part Source, Canadian Tire Financial Services, Canadian Tire Petroleum, and Mark’s Work Warehouse.

The main market they target

All Canadians are the target market of Canadian Tire.

The supply and demand of one product

There is a large demand for automotive parts so they always have a large quantity in stock.

An overview of their productivity

Canadian Tire Retail is our main engine of growth and with one of Canada’s largest and newest store networks and entire brand awareness. They are focused on delivering excellence in value, customer service and innovation.

The pricing for main products and services

Their prices are extremely cheap for all products.

Significant fixed and variable costs

Fixed Costs= Wages, rent, insurance, and lease payments

Variable Costs= Materials, utilities, and supplies

Company profits and profit margins

In 2010 profits was declined over 12%. Revenue fell 7% to $3billion.

Their strongest competitors

Walmart, and Superstores are some of their strongest competitors.

Their competitive advantage

The core retail and automotive operation is strengthened by Part Source, an automotive parts speciality chain; Canadian Tire Petroleum, one of the country’s largest independent retailers of gasoline. Mark’s, a leading retailer of men’s, women’s and work apparel; and Canadian Tire Financial Services, which has issued approximately four million Canadian Tire MasterCard credit cards.

Comment on reasons the companies have succeeded

Canadian Tire ‘Money’ is the country’s most popular customer loyalty rewards program . Customers can earn Canadian Tire ‘Money’ at Canadian Tire stores and at the gas bars. In 2000, Canadian Tire 'Money' On the Card was introduced, customers with Canadian Tire MasterCard credit cards will earn Canadian Tire 'Money' On The Card everywhere they shop, anywhere in the world.

Comment on possible weaknesses

The major weakness of Canadian Tire is that in the past, they have sometimes lost their focus on customer service. The company has also unsuccessful to recognize the changing Demographic of Canada. Another weakness is its failure to expand successfully beyond Canada.

Provide an overall summary of the business

Canadian Tire Corporation is a Canadian success in retail. Despite some customer issues in the past, the company has been able to make the most to build their expertise in their different retail areas in order to sustain their client base and to remain competitive in today’s retail environment.