Dollarama is the leading operator of dollar stores in Canada. The company performed extremely well after the leveraged buyout in 2004, and recently made a highly successful IPO. The company sources its goods mainly from Asia. He has a strong brand recognition and competitive advantages in operations, purchasing and merchandising. In the margin pressure, Dollarama recently took the risky decision to move from one point of one dollar in the price of several price categories. Among other price offer some flexibility, but the appetite customers to buy products prices above $ 1 is not yet fully defined. Dollarama at rapid growth, but are mainly concerned about its vulnerability to supply disruptions and increased costs for goods from rising input. The firm is highly inflated based on the analysis of multipliers, but significantly undervalued based on discounted cash flow analysis.
To enhance their effectiveness, color cases should be printed in color. "Hide
by Andre F. Perold Source: Harvard Business School 14 pages. Publication Date: February 04, 2010. Prod. #: 210041-PDF-ENG
Related Case Solutions & Analyses:
Sustainability at Tetra Pak: Recycling Post-Consumer Cartons
Microsoft IT India
Gobi Partners and DMG
Note on Directors Duties and Obligations Under Canadian Law and Custom
Customer-Introduced Variability in Service Operations
UCB: Managing Information for Globalization and Innovation (A) (Abridged)
KPMG Forensic: Money Laundering at Agnes Insurance
Debate Over Unbundling General Motors: The Delphi Divestiture and Other Possible Transactions
Whole Foods: The Path to 1,000 Stores
New York Times Paywall
