Best Buy
Executive Summary
Dollarama Inc. (“Dollarama” or the “Corporation” or “Company”) is Canada’s leading dollar store operator selling consumer products, general merchandise and seasonal goods at fixed retail prices of up to $2.00.
The company has made its success by offering consumers consistent and good quality merchandise at value prices for over twenty years. The company’s leading market position is attributed to a strong supplier network, a diverse merchandise mix, and convenient store locations.
Despite its successes, Dollarama faces many competitive forces from rival companies, and new entrants entering the industry since there are no significant economic and regulatory barriers in the dollar store business. Should the company fail to respond effectively to these competitive pressures, it could adversely affect their business.
Therefore Dollarama needs a strategy to confront these and other challenges.
One strategy Dollarama can adopt to maintain a competitive advantage in the industry is to expand its store network geographically into new markets; second the company can widen its consumable food product line by increasing price points to $5.00; and third, it can increase its advertising and marketing activities.
Keeping in line with Dollarama’s vision, the recommended strategy for the company is to continually expand its store network into new and unsaturated Canadian markets.
This strategy would leverage Dollarama’s strong brand name, leading position in the market, and established supplier and distribution networks.
To implement this strategy, a geographical structure should be adopted where some specialized functional groups remain centralized at the corporate level, while other functional resources such as marketing and human resources are decentralized allowing each division to tailor its policies and practices to fit the specific region in which it serves.
Introduction
Dollarama is Canada’s largest operator of dollars stores
Dollarama Inc. (“Dollarama” or the “Corporation” or “Company”) is Canada’s leading dollar store operator selling consumer products, general merchandise and seasonal goods at fixed retail prices of up to $2.00.
The company has made its success by offering consumers consistent and good quality merchandise at value prices for over twenty years. The company’s leading market position is attributed to a strong supplier network, a diverse merchandise mix, and convenient store locations.
Despite its successes, Dollarama faces many competitive forces from rival companies, and new entrants entering the industry since there are no significant economic and regulatory barriers in the dollar store business. Should the company fail to respond effectively to these competitive pressures, it could adversely affect their business.
Therefore Dollarama needs a strategy to confront these and other challenges.
One strategy Dollarama can adopt to maintain a competitive advantage in the industry is to expand its store network geographically into new markets; second the company can widen its consumable food product line by increasing price points to $5.00; and third, it can increase its advertising and marketing activities.
Keeping in line with Dollarama’s vision, the recommended strategy for the company is to continually expand its store network into new and unsaturated Canadian markets.
This strategy would leverage Dollarama’s strong brand name, leading position in the market, and established supplier and distribution networks.
To implement this strategy, a geographical structure should be adopted where some specialized functional groups remain centralized at the corporate level, while other functional resources such as marketing and human resources are decentralized allowing each division to tailor its policies and practices to fit the specific region in which it serves.
Introduction
Dollarama is Canada’s largest operator of dollars stores