Dalular General Company
DOLLAR GENERAL COMPANY REPORT
Table of Contents
EXECUTIVE SUMMARY 3
INTRODUCTION 5
ANALYZING THE INDUSTRY 5
COMPETITORS 5
CUSTOMERS 5
MERCHANDISE 6
LOCATION 6
UNDERSTANDING DOLLAR GENERAL’S BUSINESS STRATEGY 6
STORE GROWTH 6
PRODUCT EXPANSION 7
TECHNOLOGICAL ADVANCEMENTS 7
EXPLORING COMPETITIVE ADVANTAGE 7
LOW-COST STRUCTURE 8
SUSTAINABILITY 8
COMPARING SMALL AND LARGE FIRMS 9
ADVANTAGES OF THE SMALL FIRM 9
DISADVANTAGES OF THE SMALL FIRM 9
LOOKING TO THE FUTURE 10
REPOSITIONING 10
INTERNATIONAL EXPANSION 10
CUSTOMER SERVICE 10
50TH ANNIVERSARY 11
CONCLUSION 11
WORKS CITED 14
Appendices Table of Contents
APPENDIX A – PORTER’S FIVE FORCES………………………...………………..I
APPENDIX B – PORTER’S GENERIC STRATEGIES….………………………….V …show more content…
Some of these include: rivals’ similar competitive strategies, low barriers of entry into the market, and the absence of a differentiation strategy.
Rivals’ Similar Competitive Strategies. Companies in DG’s peer group are closely aligning themselves with competitive strategies similar to those of DG. For example, in light of DG’s profitable success with low advertising expenses, Family Dollar has drastically reduced advertising expenses in the past seven years. Family Dollar went from 14 circulars in 1997 to just 1 in 2003.
Low Barriers of Entry. Because of the nature of a dollar store, which has few costs, it is fairly easy to start a new store. According to Dan Margles of Allied Systems Industries (ASI):
Our DollarStores are a relatively low investment compared to owning most franchises … Our average customer this year is purchasing a complete turnkey store with high-end inventory and fixtures in the 3,000 to 4,000 square foot range for a total cost of only $149,000 to $199,000. As always, there are no franchise fees or ongoing royalties to pay… Many operators are looking to open a second store within 12 to 18
Table of Contents
EXECUTIVE SUMMARY 3
INTRODUCTION 5
ANALYZING THE INDUSTRY 5
COMPETITORS 5
CUSTOMERS 5
MERCHANDISE 6
LOCATION 6
UNDERSTANDING DOLLAR GENERAL’S BUSINESS STRATEGY 6
STORE GROWTH 6
PRODUCT EXPANSION 7
TECHNOLOGICAL ADVANCEMENTS 7
EXPLORING COMPETITIVE ADVANTAGE 7
LOW-COST STRUCTURE 8
SUSTAINABILITY 8
COMPARING SMALL AND LARGE FIRMS 9
ADVANTAGES OF THE SMALL FIRM 9
DISADVANTAGES OF THE SMALL FIRM 9
LOOKING TO THE FUTURE 10
REPOSITIONING 10
INTERNATIONAL EXPANSION 10
CUSTOMER SERVICE 10
50TH ANNIVERSARY 11
CONCLUSION 11
WORKS CITED 14
Appendices Table of Contents
APPENDIX A – PORTER’S FIVE FORCES………………………...………………..I
APPENDIX B – PORTER’S GENERIC STRATEGIES….………………………….V …show more content…
Some of these include: rivals’ similar competitive strategies, low barriers of entry into the market, and the absence of a differentiation strategy.
Rivals’ Similar Competitive Strategies. Companies in DG’s peer group are closely aligning themselves with competitive strategies similar to those of DG. For example, in light of DG’s profitable success with low advertising expenses, Family Dollar has drastically reduced advertising expenses in the past seven years. Family Dollar went from 14 circulars in 1997 to just 1 in 2003.
Low Barriers of Entry. Because of the nature of a dollar store, which has few costs, it is fairly easy to start a new store. According to Dan Margles of Allied Systems Industries (ASI):
Our DollarStores are a relatively low investment compared to owning most franchises … Our average customer this year is purchasing a complete turnkey store with high-end inventory and fixtures in the 3,000 to 4,000 square foot range for a total cost of only $149,000 to $199,000. As always, there are no franchise fees or ongoing royalties to pay… Many operators are looking to open a second store within 12 to 18