Our group performed an analysis of Dollar General’s external and internal environment, which included a Porters Five Forces breakdown. Those findings as well as analysis on the company’s financial statements formed the basis for our recommendations. We considered several alternative growth strategies for Dollar General to implement. Those strategies are, international expansion, continued domestic expansion, internal improvements, extending services, and taking the company private. We concluded that the most beneficial direction for the company is to go private thereby relieving pressure to meet short-term objectives. We also believe that Dollar General can…show more content… The main barriers to entry are startup capital and the ability to supply low cost products. Threat of Substitute Products In an industry whose top 3 selling products are household cleaners, seasonal decorations, and wrapping paper. Consumers have limitless options to where else they can purchase goods. Most consumers that shop at Dollar General live below the poverty line so quality and brand name is not the reason they are shopping there. This leads to a very serious threat of substitute products at a lower price. Internal Environment Dollar General, operating in the dollar store industry, executes a strategy of offering superior prices and convenience. Dollar General’s intention was to act as a complementary retailer, but still competitive, alongside Wal-Mart. Dollar General’s core customer purchases her staple items at Dollar General, and embellishes her household needs with items from Wal-Mart. Dollar General, as a competitive leader in the industry, has several strengths. Dollar General is able to reach smaller, more rural areas than big-box competitors by focusing on a specific layout meant to ensure convenience at all costs. Wal-Mart’s stores are usually a minimum of 100,000 sq. ft., whereas Dollar General stores average around 6,900 sq. ft. This severe difference in size allows Dollar General to be successful in
Running Head: DOLLAR GENERAL 1Dollar General StrategiesGlenda ReeseManagerial Marketing BUS 620Professor Mary WrightJuly 8, 2012 DOLLAR GENERAL 2 Dollar General Strategies Two important strategy concepts that need to be implemented for successful marketing within a business are market segmentation and a generic marketing strategy. Market segmentation is defined by Mullins & Walker, Jr. (2010), as the process by which a market is divided into distinct subsets of customers with similar needs…
Case: Dollar General Uses Integrated Software Dollar General (dollargeneral.com) operates more than 8,000 general stores in 35 states, with sales exceeding $9.5 billion in 2007, fiercely competing with Walmart, Target, and thousands of other stores in the sale of food, apparel, home-¬ cleaning products, health and beauty aids, and more. The chain doubled in size between 1996 and 2002 and has had some problems due to its rapid expansion. For example, moving into new states means different sales taxes…
team. In many cases, shareholders and board members receive very rewarding financial benefits from this transaction. However, in some situations, public firms do not have a choice in the matter, as is the case in a “hostile takeover”. In assessing Dollar General’s performance,…
Valuation and Analysis of Dollar General Table of Contents Executive Summary……………………………………………………1 Overview of Dollar General…………………………………………6 Five Forces Model..............................................………..9 Rivalry among Existing Firms................................9 Industry Growth………………………………………….10 Concentration………………………………………….….10 Differentiation and Switching costs……………………13 Scale Economies and Fixed/Variable Costs…………..13 Excess Capacity and Exit Barriers………………………14 Threat…
INSC 20263-50 Business Information Systems Dollar General Strategic Global Project Submitted to Layne Bradley By Linc Kendall, Tommy Jewett, Eric Powell, Reid Anderson, and Kaity Wegen 10/20/2011 Table of Contents 1. Executive Summary- TEAM (Add the page number for each heading. Number the pages) 1.1 Background 1.2 Alternatives 1.3 Recommendations 2. Analysis- LINC 2.1 Proposed Global Geographic Location 2.2 Country Research 2.3 Industry Research 2.4 Industry Environment-Porter’s Five Forces…
April 1st, 2013 To: Dollar General Management From: Jena Marini Re: Dollar General Case Memo Executive Summary: Dollar General is the dollar store’s industry leader and has been a fast growing retail channel in the United States for the past decade. Since under new management in 2003, when David Perdue became the chairman and CEO, Dollar General has a bright future to look forward to. Dollar General has grown from 6,273 stores to 8,260 in 2007 and revenues had increased to $9.2 billion by…
Second Regular Session Sixty-eighth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 12-0782.01 Julie Pelegrin x2700 HOUSE BILL 12-1201 HOUSE SPONSORSHIP Gerou, Becker, Levy SENATE SPONSORSHIP Steadman, Hodge, Lambert House Committees Appropriations Senate Committees A BILL FOR AN ACT 101 102 103 104 CONCERNING ADJUSTMENTS IN THE AMOUNT OF TOTAL PROGRAM FUNDING FOR PUBLIC SCHOOLS FOR THE 2011-12 BUDGET YEAR, AND, IN CONNECTION THEREWITH, MAKING AND REDUCING APPROPRIATIONS…
1. When the trading of one currency for another is determined by the laws of supply and demand it is called a(n) _____ exchange rate system. *a. flexible b. free-market c. floating d. either A or C e. none of the options listed General Feedback: Page 453. Learning Objective 1. Difficulty: Easy. Systems in which the exchange rate is determined by the laws of supply and demand are called flexible exchange rate systems, such is the case with Australia. 2. A flexible exchange rate system…
have been criticized for running mom and pop shops out of business. Walmart has many outlets around the world. Sam Walton, founder of Walmart was an ordinary man that drove a regular old truck. Sam borrowed a $20.000 loan that made him billions of dollars later in the future by the opening of Walmart. Not much is known about the Walton’s because they refused interviews. Even in Sam’s last days of his life he made sure that his money will continue with his family and not by taxes because he divided…
NO The “dollar special” campaign will not be proposed within our final strategy nor should be totally explored in general. Despite this type of price promotion embraced the concept of greater foot traffic at Reed being (3%), there overall concept however leads to negative margins within the long-run especially for our program thus being in-efficient. With our proposed strategies and tactics explained by Adele, Reed Supermarkets cannot afford to have even lower margins that this promotional avenue…