Hi Cambam agree that they should consolidate their position in current markets and build strength prior to opening new markets, however offer that Taco Bell is not necessarily a completely fair comparison. SAAS companies can scale and globalise much easier, efficiently and effectively than a retail company (that is why I try to find good SAAS companies). DOC does need to rely on quality humans in the form of Health professionals at the front of house though so I believe they need to think hard about how to enter a new market (training, on boarding, appropriate metrics, concise values and behaviours expectations etc) such that the business customer can come up the curve quickly and the patients have a positive quality experience first time, thus inducing the scale effect quickly. Some retail companies do scale when entering new markets in other countries and some struggle at first then recover to go onto new highs. Some are more dependent on understanding the cultural differences (like Dominos) and adjusting to suit than others. For example; I bought Lovisa for less than $2 sold at $12 when they decided to expand their markets OS I struggled with their ability to compete in those new saturated markets, yet their business model was robust, they piloted then scaled carefully, went down initially but are doing well now. I would have done well to hold them, they also paid very good dividends. cheers
DOC Price at posting:
26.5¢ Sentiment: Buy Disclosure: Held
