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Factors Affecting CTC Company

External forces that have direct and immediate impact on the organization are called specific environment. The factors affecting CTC are


Suppliers a lion share of company’s product assortment are outsourced. The inconsistent supply chain and delaying time between order and delivery can possess a threat to the smooth functioning of CTC.IN order to reduce the impact company has to maintain a good relationship with transport company’s and should have an advanced tracking system. Also, company should be more concerned while selecting business with companies which follows best industry practices.

CITATION Can181 l 1033 (Canadian Tire Corporation Limited, 2018)


Consumer behavior and shopping habits are continuously evolving and they tend to move toward online shopping and mobile ecommerce applications. If the company fails to provide a new and attractive digital platform to customers, this will adversely affect the reputation and put themselves in competitive disadvantage. In a retail industry, customer is the king and CTC has to make changes according to customer’s preferences to avoid demolition of brand image.

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CITATION Can181 l 1033 (Canadian Tire Corporation Limited, 2018)


CTC faces stiff competition in all its operating segments. Across all of company’s categories there is no single retailer competing with CTC. In Canadian Tires living and fixing categories is competing with mass merchants like Walmart, The Bay, Home outfitters, Sears, Home Depot and Rona. Canadian tires automotive category and Canadian tire petroleum is competing against independent retailers, tire specialty shops and other automotive dealerships. Competitors includes Uni-select, Kal Tire, Fountain tire, Mr.

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Lube. Company’s foot wear and clothing banner like sport check and marks compete with Walmart, The bay, GAP, Foot locker. Major Banks and other retail companies’ financial services arms brings heavy competition to the company’s financial services. It is expected that CTC will face new competition in upcoming years to come through industry consolidation. Expansion of US based retailers and e commerce sites like amazon is going to bring new challenges to CTC and may lead to price wars which would adversely affect the profit margin of the company.CITATION Can18 l 1033 (Canadian Tire Corporation Ltd, 2018).Canadian Tire has started a number of automotive concept stores with features like auto detailing, express lube change to drive away competition and it owns 87 specialty automotive part source stores. In 2013, CTC introduced the concept of small stores to compete in the market CITATION The15 l 1033 (The Context of Business:Understanding the Canadian, 2015)

Peer groups

In 2014, CTC decision to produce hydrogen in their new distribution Centre in Bolton was put on hold through peer group activities initiated by Caledon residents. Residents were not only worried about the hydrogen project but also was worried regarding the truck traffic and possible issues. Peer group named Your voice for Bolton was formed with an objective to eliminate hydrogen project near people’s home. Later in the year, CTC temporarily called off the project to help residents understand the importance of innovate clean technology. CITATION San16 l 1033 (Grewal, 2016)


Legal-Political Factors

The push of the government to liberalize many industries was designed to support more competitors in the Canadian business sector and facilitate free trade between Canada and the United States.  The global reduction of trade barriers has also opened the doors to the growing influence in many industries of foreign investment. CITATION The15 l 1033 (The Context of Business:Understanding the Canadian, 2015) Canadian Tire Corporation must abide a variety of law and regulations in the different markets it operates. The various federal legislation include Canada’s employment equity act, The completion act and the Canadian human right act. It has to closely watch the policy and regulation changes under the local government because it alters according to the provinces. CTC was able to gain more profit in western hemisphere due to the low tax policies. This inequality can cause changes in taxation policies. It also outsource many of its products, so it has to adjust the policies according to the outsourcing country. Non-government organization and pressure groups play an evitable role in policy making so CTC has to collaborate with these agencies for achieving their community and cooperate goals. CITATION Blu l 1033 (Blue Ocean University, n.d.)

Economic Factors

Interest rates, inflation and changes in disposable income are the main economic factors affecting CTC. Despite of the stability in disposable income, the growing inequality has adversely affected the consumers buying behavior. According to statistics provided by the conference board of Canada, Canadian economy is expected to increase by 1.9 % in 2019 against 2.1% growth in 2018.Weak job market and hiking interest rates are going to affect the house hold spending which in turn adversely affect CTC business cycle. CITATION The18 l 1033 (The Conference Board of Canada, 2018)

Social Factors

Canada is a country with has liberalized migration policy. Thus, CTC has the ability to hire international leaders and managers having a positive impact. The power structure has been altered due to the increasing trend of income inequality. With the liberalization of trade laws, health and safety concerns has become sloppy and CTC has to stay away from such attitudes to remain successful. CITATION Blu l 1033 (Blue Ocean University, n.d.)


Over the year we have seen vast changes in technology. CTC will perish if they are falling short in technological advancement. Technology is fast disrupting every sector because it’s provide greater access to information and has led to increased competition. They have to bring constant innovation to stay ahead of completion. Technology has really reduced the product life cycle and force Company to develop diverse products. CITATION Blu l 1033 (Blue Ocean University, n.d.)In 2013, Canadian Tire has partnered with Communitech, a technology based company in Ontario to revise their digital technology and provide better shopping experience for customers. Increasing purchase of tires online from US based company has forced Canadian tire to launch online store to sell tires and wheels. CITATION The15 l 1033 (The Context of Business:Understanding the Canadian, 2015)Seasonality risk Majority of CTC revenue is obtained from seasonal products and obtain large revenue during fourth quarter. CTC controls the risk associated with it by increasing the breadth of product mix, through efficient marketing, focusing on non-seasonal products and through effective procurement and inventory control. Sales is also affected by the unseasonable weather condition and slower holiday shopping. CITATION Can191 l 1033 (Canadian Tire Corporation Limited, 2019).


Canadian Tire Corporation Ltd. (2018, 11 13). Canadian Tire Corporation Ltd. SWOT Analysis. Retrieved from EBSCOhost

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Factors Affecting CTC Company. (2019, Aug 20). Retrieved from

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