Dollar Tree Analysis

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Dollar Tree Analysis Name: Date: Analyze the business-level strategies
The sluggish economy has created a perfect storm in favor of the retail business. Dollar Tree, Wal-Mart, and Dollar General have generated significant profits as a result of the sluggish economy. These firms have embraced the financial opportunity amid consumer pessimism.
This evaluation will disgust the business level-strategy practiced by Dollar Tree. We will discuss its strength, weakness, opportunity, and threats. The organization strength has made it possible to respond to realistic opportunities. The firm’s decision makers thrive to
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This is important because it gives them price differentiation. Dollar General and Family Dollar prices vary according to the product. Similarly, Wal-Mart conveniently operates with low prices to cater its demographic, but it cannot operate in as many locations. . “If a firm has lower costs than its rivals, other things being equal, it will outperform them” (Satterwhite, 2006).
Logically, Dollar Tree business model enriches the customer experience. Its stores are strategically located near low income neighborhood and are conveniently open to cater its customers. Competitors such as Dollar General and Family Dollar have similar stores, but they do not have price differentiation and market power.
Nonetheless, Dollar Tree acknowledges its market power; its competitors, Wal-Mart, Dollar General, and Family Dollar have an uphill battle to reach Dollar Tree business model. Moreover, Dollar Tree product differentiation gives them an additional leverage over their competitors. As mention earlier, Dollar Tree sells its entire product for $1 or less. They accomplish this by purchasing a variety of products from private vendors at wholesale prices. In contrast, its competitors purchase brand name products at higher prices, thus making it difficult to compete with Dollar Tree prices. These are the way Dollar Tree utilized to map, scan,
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