MGT 526 WK 3 SUmmative Assessment (Business Strategies Proposal)

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Jan 9, 2024

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1 Wk 3 Summative Assessment: Business Strategies Proposal Herenia Onyango University of Phoenix MGT/526 Dr. Gwendolyn Brown October 23, 2023

2 Dollar General: Business Strategies Proposal Dollar General is moving unapologetically through untapped markets and regions and has made this their goal. One of their strengths and that sets them apart from their competitors is their ability to take the huge risk that most small box retailers would not do. The risk is high but to get to where they need to be, Dollar General has been facing them head on, overcoming them and then bursting though victorious because they invest in their people. I think that Porter’s Five Forces model forces our minds to analyze complex organizations like Dollar General who have managed to grow and remain profitable despite the challenges and over time. I honestly believe that Dollar General is going to remain in the winning category for a log time. Just last year, Dollar General opened one thousand and thirty- nine new stores. Put into consideration that these stores are open in low-income neighbors and rural areas. With that said, they are still able to scale their business in ways most competitors would ever dream of. There are major companies that are Dollar General’s competitors such as Target, Family Dollar, Walmart and so on. What amazes me is despite the huge competitors, Dollar General is still able to sell their items at the lowest rates in the market and more so bring the store to the people by offering ecommerce options. The second force would be new entrants into an industry which would affect Dollar General, especially during this time when people are very innovative. What sets Dollar General apart here is its ability to go into untapped markets and be the only supplier of necessary amenities and goods needed by the regular guy. The third force is very important and truly where Dollar General thrives as it can uphold loyal relationships with

3 suppliers who have remained loyal and keep furnishing all the items they need in those rural areas. The fourth force, being the force of customers, is what has made the Dollar General what it is today. People have been so grateful to have amenities and a store close to them that even carry branded items that they have not shy away from supporting Dollar General. They locate themselves where there is a need, and the customers thank them with loyalty. This gives Dollar General an advantage to keep giving low rates but would not stand to lose any customer if they decided to raise a few costs over time. The last force, which is threat of substitutes that Dollar General might not worry about due to the branded products they sell. If I liked a certain brand, I would stick with it and not be drawn into another brand due to cost. This is something Dollar General has offered the rural areas that they will not walk away from. The leadership strategy used by Dollar General is cost leadership strategy which is clear as day as their primary focus is to reduce the cost of production and offer affordable products in rural areas. This is how they have been able, among other strategies, to stay ahead of their competitors. I do not even think that Dollar General should change anything it is doing when it comes to its strategy. They are winning in this industry and should place more resources at the disposal of their teams to ensure that they are building stringer leaders that will take charge in the new future and come up with more innovative ideas. Even if Dollar General adopted the authoritarian leadership model, they have set procedures and parameters in place that they would not lose as much. Through the years, they have tested all these strategies and have seen the result of them not just working but creating millions of dollars in revenue year after year.

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