Dollar General Case Analysis Ashley Bice Brittany Chisholm Kayla Ford Katherine McCain General Information 17. Economic uncertainty helps dollar stores 2. How we tackle the strength and weakness are by conducting study on the opportunities and threats seen surrounding. External Analysis Porter's Five Forces 1. . However, Dollar General faces challenges that are both internal and external.
Furthermore, threats in the marketplace provided less room for Dollar General to solve its problem right away especially in terms of financial stability. Dollar General began to experience a decline in sales and store expansion as early as 2005, prior to the recession of 2007. One of the great advantages the company enjoys is that most sales come from within 5 miles of an outlet. Four years later, the company Cal Turner Jr. Therefore, it is a must for Cal Jr. A large number of strong competitors d.
The stores were founded in 1939 by Cal Turner in Scottsville, Kentucky as J. Today Dollar General is a leading discount retailer now have 13,000 stores in 43 states. Even though the product is a success in terms of sale but its positioning and unique selling proposition is not clearly defined which can lead to the attacks in this segment from the competitors. It is a normal practice that when we conduct business strategy, the main point that we will look into is the strength and weakness that leads to the profit and loss of the corporation. It has an extensive product line that caters to many different people. Improvement on operational structures S1,O3 1. The article originally appeared on Fool.
Evaluation Criteria Through all stages the evaluative measure will be the extent to which performance matches the operating priorities: driving productive sales growth, increasing gross margin, improving processes and information technology to reduce costs, and strengthening the Dollar General culture of serving others. Threat of Substitutes Low The threat of substitutes is low in the discount retail industry and this is due to products are already on the low end of pricing scale and the products offered by different dollar stores are almost the same, and the essential products are difficult to find substitutes. Our mission is Serving Others, and we think our customers are best served when we keep it real and keep it simple. The trucking companies transport the merchandise to a store from their nearest distribution center. The largest airline in the Middle East and one of the growing brands in the world, Emirates Airlines is the subsidiary of Emirates. In 1968 they changed the name to Dollar General Corporation. Another important stimulus that could be cut back by the government in 2013 are food stamp plans for the unemployed or underemployed.
This gives a company an idea of things that are working for them as well as areas of opportunity. Importance of industry to suppliers 5. Avis is an internationally recognised car rental company, it is placed second in the world and fifth in Singapore and identified as a strong brand. The problem lies internally of the organization being discussed and this makes the internal strengths of Dollar General are already meaningless. With these technological improvements, they have also been able to drastically reduce the size and weight of these various units in order to make them more convenient and accessible.
The chain operates over 9,000 stores. As a result, they could lose on bringing more customers to know about their brand image. They come from many producers of. Assessment, Following, Management 414 Words 7 Pages Summary……………………………………………. Burger King continues to make a positive impact in the community through their vision for food,. This should open a window of opportunity for Dollar General Corporation in other product categories.
Even though Dollar General Corporation is spending above the industry average on Research and Development, it has not been able to compete with the leading players in the industry in terms of innovation. However, goods are usually sold at set price points of penny items and up to the range of 50 to 60 dollars, not counting phone cards and loadable store gift cards. While various factors point towards the development of the company, some important risks and threats should be taken into account in order to make a wise choice. These firms have embraced the financial opportunity amid consumer pessimism. It also informs them where there are areas of opportunity and the threats that may keep the company from improving. With more cash in bank the company can invest in new technologies as well as in new products segments. New entrants are facing many barriers in this industry.
There is no current northeast distribution centers at all. Chandler, Strategy and Structure Cambridge, Mass. As a result, competitors such as Wal-Mart. More effective and efficient implementation could bring success to Family Dollar, helping close the aforementioned gap with Dollar General. Right now the investment in technologies is not at par with the vision of the company. They now have almost 6,400 outlets, with most of them being in the northwest, they are looking to pop up on every corner throughout the rest of the country. After a dip and slower growth in 2006-8, new store expansion grew to 466 stores in 2009.
Operatinal costs are increasing day by day 2. After reading the chapter it makes perfect sense in how companies use it strategically to be more competitive in the industry that they are in. The company acquired the 280 stores of the P. Since the low-cost leadership is essentially the only competitive advantage within this industry, retailers are constantly reducing prices and profit margins to try to drive traffic to their stores and increase sales. Strategic and operational business information is objectively reported. This analysis will help determined whether to invest in this company. A dollar store is a great answer for those shallow pockets.