Dollarama is a retail chain dollar store Canadian Company. Larry Rossy founded the retail chain company in 1992. Today, we’ll discuss the SWOT analysis of Dollarama; it outlines strengths and weaknesses; opportunities, and threats that the company has to face; as a business strategy analysis example company.
The products and services portfolio of Dollarama
- Hardware
- Party supplies
- Stationary
- Kitchen supplies
- Healthcare products
- Gifts
- Grocer
- Candy
- Toys
- Cleaning items
Industry-Focused Area of Dollarama
- Retail Chain Store
Statistical facts and figures of Dollarama
- Annual revenue: 5.052 billion CAD (2023)
- Net income: 1.191billion CAD (2023)
- Employees: 24000
- Network: 1486retail chain stores
Competitors of Dollarama
- Canadian Tire
- Dollar Tree
- Walmart
- George Weston
- Loblaw Companies
- Alimentation Couche Tard
- Family Dollar
- Five Below
The SWOT analysis of Dollarama would analyze the internal strengths and weaknesses of the company; and external opportunities and threats that the brand has to face. Here’s Dollarama SWOT analysis as a business strategy analysis example company as follows;
Strengths of Dollarama
Some of the main internal strengths in the Dollarama SWOT analysis example company as business strategy analysis are as follows;
Large Network
Dollarama has established a very large market network comprising approximately 1486 stores across Canada. The large network of retail chain stores across the Canadian market amplifies the customer market reach and accessibility of the company.
Portfolio
Dollarama has developed a well-diversified product and service portfolio. They comprise of a wide range of products and services ranging from hardware, candy, cleaning supplies, healthcare products, kitchen, stationary, party, gift, and other products. The large and diversified product and service portfolio helps the company to target various segments of the customer market.
Affordable Products
Dollarama has earned a market reputation for providing affordable products and goods and targeting the price-conscious customer market. It allows the company to increase its sales by targeting the mass customer market.
Cheap Sourcing
Dollarama focuses on sourcing cheap products, supplies, and materials from the foreign market; and offers discounted products and goods to the customers. The mass-scale production and foreign sourcing allow the company to remain profitable by offering affordable products to the customers.
Solid Finances
Dollarama has earned a solid financial position comprising of approximately over 5 billion Canadian dollars. The strong financial position helps the retail chain store company to take on various new projects and manage any type of economic and market recession.
Weaknesses of Dollarama
Some of the main internal weaknesses in the Dollarama SWOT analysis example company as business strategy analysis are as follows;
Limited Market Network
Dollarama has a limited and no market network and market share outside of the Canadian market. It shows that the company is heavily relying on the Canadian market as its main source of revenue and profitability. Heavily reliance on one retail customer market is not a good business and market strategy.
Low Quality
Many customers complained about the low-quality products of the retail chain store brand Dollarama. To offer affordable products to the customers, it has negatively impacted the quality of the product and jeopardized the brand image.
Opportunities for Dollarama
Some of the main available opportunities in the Dollarama SWOT analysis example company as business strategy analysis are as follows;
Market Expansion
Dollarama should expand its retail chain store business into new regions, countries, and markets across the world. The global market holds great growth potential for the affordable retail chain store business. It would help the company to increase its market network, reach, and sales.
Portfolio Expansion
Along with market expansion, Dollarama should consider expanding its business and market by launching new types of products and goods to customers. It allows the company to amplify its customer’s market reach and influence with new products for the customers.
Strategic Alliance
Dollarama should develop strategic alliances and partnerships with other retail chain store companies and brands. The joint venture and collaboration of resources would help the company to develop new products and enter new markets.
Threats to Dollarama
Some of the main potential threats in the Dollarama SWOT analysis example company as business strategy analysis are as follows;
Tough Competition
Dollarama is facing tough competition from competitive brands like Walmart, Dollar Tree, and Canadian Tire. They all have established a strong market share in the retail chain store market and a very loyal database of customers. Their market presence in the retail sector is negatively impacting the sales and profitability of the company.
Regulations
Dollarama complies with quality, health, and safety regulations of the country and the government. In case of non-compliance, it would bring expensive lawsuits, heavy fines, and settlement fees to the company.
Conclusion: Dollarama SWOT Analysis Example Company |SWOT Analysis of Dollarama |Business Strategy Analysis
After an in-depth study of the swot analysis of Dollarama; we have realized that Dollarama is the leading Canadian retail chain store company. If you are learning about Dollarama SWOT analysis example company; then you should keep in mind the abovementioned internal strengths and weaknesses; external opportunities and threats as brand strategy analysis.
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Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
