Canadian Tire SWOT Analysis

Canadian Tire SWOT Analysis


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.

Canadian Tire SWOT Analysis

In order 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;

  • Wider and loyal customer base
  • Variety and fast delivery of fast moving consumer goods
  • 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.


Similar to 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 number of 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 is on the rise and this is good news to the company. Higher income levels means 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 particular 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;

  • Increasing costs of raw materials, which can potentially slice profit margins
  • Stiff competition from companies showing better quality products and services like Home Depot, Kal-Tire, Sears among others.
  • Increasing labor costs
  • 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 in order to grow its customer base even further. With these and more adjustments, Canadian Tire can easily enhance its sustainability and profitability.

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