Dollarama Tests Latin America Again

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DOLLARAMA TESTS LATIN AMERICA AGAIN

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Introduction

The Dollarama is a Canadian based store founded in 1992 by Larry Rossy. Dollarama operates more than 1,000 stores across Canada. It offers a broad assortment of everyday consumer products, general merchandise and seasonal items with compelling value. The quality merchandise is sold in individual or multiple units at select, fixed price points up to $4.00. the case study is about this specialty (special price offers), whether it will be a positive factor to establish itself in the Latin America market.

1. What two unique strengths of Dollarama make this first step into global expansion possible?

Strengths

• Their unique concept of price that is the most attractive feature. It is the most important thing that attracts customers. They have fixed price for everything and its very reasonable and is very less as compared to other retail or wholesale stores.
• They offer a range of products. They have stuff related to everything from kitchen to washroom stuff and for gardening and more.

But the quality of products they offer is very good even if their price is less as compared to others.

1. How does Dollarama’s product offering make it a possible match for the Latin American market?

Potential for Latin American Market

Dollarama is going for underdeveloped and underserved region of Latin America as they believe that it has stronger growth potential than mature markets in North America. Dollarama is going to make use of this situation. As they offer range of variety of products at reasonable cost, people of Latin America will find it more attractive than their local products as their economic condition is not very strong. So, product at such prices will attract more customer than in other region of North America.