The aim of this report is to discuss about the firm and industry analysis of Tim Hortons. The industry where they are operating is critically analyzed and different insights had being gained. In addition, the major external factors relevant in the business operation of Tim Hortons are also identified and discussed in this report. This report identified that intensity of competition is high for Tim Hortons with the presence of number of competitors. Moreover, it is concluded that they should initiate market development strategy to overcome the challenge of limited market presence. Associated costs are also discussed for the implementation of the plan.