Dollar General Industry and Competitive Analysis

Lowe’s is the 14th largest retailer in the United States and is presently planning aggressive expansion, opening a new store on average every three days. Lowe's revenue growth is primarily a function of penetration of the market increase resulting from a burst of new locations instead of the same store sales. Although Lowe’s has grown tremendously, it remains half the size of Home Depot and has serious debt burden that increases its risk level drastically. Lowe’s is Home Depot’s largest competitor because both companies have the same products, services, and enormous warehouse formats. In this major retail market Lowe’s and Home Depot stores go toe

With 30% of Dollar General’s inventory being made up from nationally known brands and the other 70% consisting of Private label brands, Dollar General does not face a large threat from the bargaining power of suppliers. While the national brands are on par, or sometimes below, big box stores such as Wal-Mart’s prices. Dollar General’s focus is supplying consumers with quality products at the lowest price possible. Since the majority of their products are created internally the power of supplies to control prices or production is very low.

Dollar Tree, Inc. is an American-based chain of discount variety stores, selling every item for one dollar or less. The company’s headquarters is in Chesapeake, Virginia and operates more than four thousand stores throughout the United Sates (DollarTree, Web). Its stores are supported by a national logistics network of nine distribution centers. The enterprise operates one dollar stores under the name Dollar Bills and Dollar Tree. The Enterprise also operates a multi-price-point variety chain under the name Deal$. Dollar Tree company competes in the low-end and dollar store with the national chains Big Lots, Dollar General, Family Dollar together with other regional stores like Fred’s and Mary, 99 Cents Only Stores and many other independent dollar stores nationwide (Adam, 2011, Web).

• DSG had a store network much larger than its competitors, and so a higher cost base, with considerable exposure to and reliance on the fast moving office/computer products market.

5. Opportunity – Certainly there is a good opportunity for buying cheaper products. Most goods are bought in large volumes and factories in poorer countries are compelled to offer cheaper prices to keep their factories running with that kind of bulk buying. DG does not require a factory to be Audited and certified for quality standards and social compliance. Their products are sourced from the lowest priced, low standard small factories based in rural areas that usually employ child labour. These factories are able to produce cheap items because they do not have to add additional costs of being a compliant factory. This results in cheaper items coming to their shelves and being passed onto an unsuspecting customer. Their introduction does not reflect their mission statement for the above given reasons in terms of : Respect, a better life for customers, superior returns for

In this segment, the retailer J.C. Penney will be analyzed against the department store retail industry, with particular emphasis placed upon their competitors, Macy’s and Kohl’s. The major components to be discussed will include the general external environment (i.e. demographics, economics, politics, legal requirements, technologies and global expansion), the industry environment, the competitive environment, the driving forces and the key factors for success within the industry. In terms of the general external environment, the retail industry is a multi-trillion dollar business in the United States alone and maintains operations primarily due to consumer spending. Such purchases rely upon the disposable income of

The main competitor of Whole Foods Market is Kroger Co. and Sprouts Farmers Market. These two companies are also providing organic foods of high quality.

These categories exist in various formats including supercenters, supermarkets, warehouse clubs, cash and carry, home improvement, specialty electronics, apparel stores, drug stores, convenience stores, and digital retail. Wal-Mart’s chief competitors consist of Target Corporation, Dollar General Corporation , Burlington Stores, Inc., BJ’s Wholesale Club, and Costco Wholesale Corporation. I chose Wal-Mart because they are simply an Industry leader. They provide a wide array of goods and services, and it doesn’t look like they’ll stop growing any time soon. The growth has been large, yet consistent in previous years.

All primary competitors have the characteristics of drastically discounted merchandise and low-cost strategy. In my opinion convenience and store location often dictate revenues and values of this highly price sensitive market. The quality may differ slightly, and brand names are more prevalent in Dollar General or Family Dollar/Dollar Tree (Malcolm, 2014). Dollar General would be the primary competitor, and it would be significant to understand the areas differentiation and deeply analyze the strategy or competitive advantages of this company (Parnell, 2014). In addition competitors such as Sam’s and Costco compete in the discount retail industry offer bulk shopping at discounted prices.

Dollar Generals (DGs) are popping up left and right. DGs are now in our backwards challenging all of our local businesses. Working at the DGs is not a hard job once the store is stocked and ready for business. I used to see DGs as where “sorry people” worked because overtime, people get lazy and let the DGs go and make it look almost impossible to get it back looking nice again. But that was until my buddies and I started working at the new DG in Ino. We are all there to make money to have for gas, keep girlfriends happy (which seems almost impossible to do), and other expenses. We are determined to keep our DG up and running great with no dirty isles, no items stuck behind others, and no rude employees. Dollar General is the place to shop because it has a good trained staff, a friendly-clean environment, and cheaper products to bring in more business.

Among the market researches that were conducted, competitive analysis proved to be the most effective one in gaining a competitive advantage over other market

This has not quite come easy and to understand the reasons behind the success of Dollar General, this analysis will delve into the internal and external environment that has led to this phenomenal accomplishment. As early as 1983, the company had been renowned as the leading retailer dealing with consumer products, which raises the need to understand the company’s history to evaluate the foundation of its success (Noggle,

than 9 percent of merchandise sold”. Such has been able to check on the power of suppliers and absolute size, an aspect that assists Dollar General to maintain economies of scale for its merits (Teece pp. 33-44).

DG experienced difficulties with inventories and real estate portfolio, due to its size and nature of business, however it recognized the problem, implemented the effective and adequate steps towards it resolution (some of these steps are made the results better than of competitors, see days

A reputation of being the “Wal-Mart” of retail and service established by Pep Boys keeps bringing customers back to their stores as repeat business (PepBoys, 2015). Consequently, Pep Boys service rates are far lower than competitor dealerships especially in the sale of tires. Pep Boys will need to have a procurement team that will look into detail how the company can give service at the best price possible while increasing revenue for the service market of the company. To do this will require to make sure that the experience a customer has is one so positive that they will remember it and pass that along to other potential customers. Once Pep Boys can streamline their supply chain, and warehousing locations in the central U.S., Pep Boys will expand much more than they ever have.