University Finance Case: Equity Valuation of Shoppers Drug Mart

This case study analyzes the equity valuation of Shoppers Drug Mart, focusing on its acquisition by Loblaw Companies Limited. The assignment begins with an economic analysis, examining global, continental, and country-specific factors impacting the company. It then delves into a PEST (Political, Economic, Social, and Technological) analysis to assess the external environment. Competitive analysis, including a look at Shoppers Drug Mart's key competitors and their strategies, is provided. The case also includes a SWOT analysis to evaluate the company's strengths, weaknesses, opportunities, and threats. Finally, the assignment outlines the company's strategies to overcome competition and maintain its market position, including marketing techniques and strategic partnerships. References to relevant academic sources are also included.

EQUITY VALUATION
NAME OF THE
STUDENT
NAME OF THE
UNIVERSITY
AUTHOR’S NOTE
.

EQUITY VALUATION
Loblaws ACQUIRING Shoppers
Drug Mart

INTRODUCTION
( E C O N O M I C A N A LY S I S )
Shoppers Drug Mart’s economic analysis are as follows-
• Globally- This company being a integral part of the
pharmacy sector can provide medicines at a lower cost, the
lower income groups will be benefited.
• Continentally- The company has its presence on a world
wide scale and hence can provide products at a competitive
rate, thereby benefiting the consumers at large.
• Country specific- It is one of the market leaders in the retail
sector comprising of medicines, toiletries and other durable
consumers goods where the standard of living of the people
in the country can be raised as they are provided with a
larger variety to choose from at a competitive price.

PEST ANALYSIS
The country has governments that adhere to the
policies and treaties made by the last government
To make the shoppers drug mart stable in the
political environment the company needs to
strengthen its democratic policies
US economy has grown by 30% inn the last 20
years. This enables the Shopper drug mart in
recruiting more skilled labour and to give a
competitive edge
Price fluctuation in the global market can lead to
serious inflation to company and lead to severe
currency depreciation.
.
Growing population of the country indicates that
demand in future will be increasing.
Shoppers drug mart has stringent policy and should
consider revising these policies to compete in the
competitive world
In the era of online selling, Shoppers Drug Mart
should assess internet and online portal for easy
buying and selling
P-Politic
al
E-
Econ
omic
al
S-
social
T-
Tech
nical

COMPETITIVE
ANALYSIS
• Shoppers Drug Mart has introduced diverse variety of
products such as beauty products to gain a
competitive edge.
• Global tie-ups by the company is providing it a greater
platform to expand and grow.
Major competitors of Shoppers Drug Mart

SWOT
ANALYSIS
STRENGTHS
1. One of the largest
pharmacy consisting 1200+
stores
2. Availability of private
label brands
3. Selling diversified variety
of products all across the
country
WEEKNESSES
1. Highly competitive
market with various other
local stores available.
2. Global presence of the
company is very low to set
domestic goals.
OPPORTUNITIES
1. Good marketing
techniques used by the
company to attract high
number of consumers
2. Its major global tie ups
resulting in expansion
THREATS
1. Norms in pharmacy
industry can be an entry
barriers for the Shoppers
Drug Mart.
2. Huge amount of
investment is required in
the research and
development department.
SWOT analysis
propose to
analyse the
company’s
internal and
external
factors

STRATEGIES
.
Strategies taken up by the company to overcome
the competition faced:
1. The company uses a good marketing and
advertising technique where it shows itself as a
highly caring and supporting brand. This improves
the brand name of the company.
2. Engaging in diversified products help the
company in improving the standard of living of the
people in the country. This also allows the company
to attract customers of all age group rather than just
patients and old citizens
3.The company has had some major tie-ups in the
last few years. This particular strategy help the
company in providing a greater platform to expand
and grow.

REFERENCES
Kwan, A. (2018). Gender and the politics of
classification: The organization of
Shoppers Drug Mart and its
beautyBOUTIQUE Cosmetics Brand. The
iJournal: Graduate Student Journal of the
Faculty of Information, 4(1), 10-21.
Lynas, K. (2013). Arthritis screening and
support program to be delivered by
pharmacists at Shoppers Drug
Mart. Canadian Pharmacists Journal:
CPJ, 146(6), 313.