Dollar Tree Case Study

The one quality that puts Dollar Tree ahead of all other dollar stores is that it actually sells all of its products at one dollar. It does not matter what the product usually sells for or what it should sell for, because Dollar Tree’s business works in a way that makes them capable to sell their products at the simple price of one dollar. Because of this unique aspect, we will focus a large portion of our advertising on that message. Consumers can do all of their shopping at one low price, and in return, receive quality products which satisfy their needs. Our advertising will give off the personality of the average working family. Dollar Tree is not a fancy store and that is certainly not the image that our advertising will convey. We want people to be able to relate to Dollar Tree and have the feeling that shopping at our stores is like shopping at a Walmart or Cosco, but cheaper and less of a hassle.  It’s the one stop shop for all of your family needs.

If we analyze Dollar Store, we will see that it has established over 140 stores across Canada since its inception in 1998. As it has been considerably increasing its market reach across Canada; they are considered a direct competitor to Dollarama. On the other hand, Great Canadian Dollar stores are extending their reach in eastern Canada. Additionally, they are very present in the community by offering both charitable and communal support. At last, Dollar Tree is a growing chain of discounted retail stores in the United States. It operates over 4400 retail stores in 48 states of the US and in Canada. Thus, they are ready to expand their customer base into Canada. Also, Dollar Tree offers a much broader range of products compared to Dollarama, for example frozen foods and dairy items. As such, there is a very high competition in the discounted retail stores industry. However, in such a high competitive environment, Dollarama is still able to open over 150 stores in the past four years only. Also, considering their stock trend, their share price had increased from 25$ to 56.90$ per share in only one year. That represents a growth of 128% in a single year. We can conclude that their shares are in demand in our current market environment. Thus, we can assess that they are very well positioned in today’s competitive environment.

1. What lessons do you learn from Justin’s experience in terms of the limits of some of the core strategy frameworks you learned in theory (examine for example, Michael Porter’s Five Forces and the challenges Justice faced in applying it, value chain analysis, the Resource Based View)

Dollar Tree operates as a Public trading company in NASDAQ (DLTR) as S&P 400 component. With over 13, 851 discount variety retail store (5, 954 under the Dollar Tree, Dollar Tree Canada, Deals and Dollar Tree Deals brands) ten distribution centers in the United States and two in Canada and a Store Support Center in Chesapeake, Virginia.

The internal analysis is very important in a company. Just like the external analysis, both of these analysis help to determine strategies. The Internal analysis involves the strengths, weaknesses, opportunity and threats of a company (Pearson, 2014). Dollar Tree has many strengths but they also have some weakness too. If Dollar Tree would use the data that they have from their internal analysis they could turn a lot of their weakness into strengths. But we will talk about their weaknesses later. The more strength a company has the better. One of Dollar Tree’s strengths would be that they acquired Family Dollar in 2015. This is a huge strength for Dollar Tree. Dollar Tree has many opportunities to overtake the dollar store market. They only need to keep inquiring their competitor’s stores. Strength for Dollar Tree is their strong financial performance. They are the largest dollar store in the market. Dollar Tree has a $15.5B Annual net sale that grew to 80.2% in 2015 and exceeded $15 billion for the first time in Company history. Now to Dollar Tree’s weaknesses, this would be their low inventory turnover ratio. In 2016, Dollar Tree reported that their inventory turnover ratio was 3.8 (Canadean, 2016). This is a high number. This is saying that they have more than enough of inventory in store that is not being bought by their customers. This is really money that is setting in their warehouse or stockroom and it just sitting and is not being used. This is bad for Dollar Tree.

The Dollar Tree Cooperation provides inbound, import, domestic transportation and outbound transportation services to 48 locations in the United States and five locations in Canada (Dollar Tree Inc., 2014). Using 10 distribution centers, the Dollar Tree is

“The key elements of Costco strategy are extremely low prices, a limited selection of naturally branded and private label products, a treasure hunt shopping environment, strong emphasis on low operating costs, and ongoing expansion of its geographic network of store locations.” To provide low prices Costco caps its markup on brand merchandise at 14% compared to 20% to 50% at other supermarkets. The equals out to a sales revenue that only equales several million dollars. This number excludes all other operating factors including the membership fees. Another important element of the strategy is that unlike other retailers they don’t offer window displays or any other thrills with in the stores. They know because of the reputation and because of the value that they offer their customers that the items that they sell offer value over all else.

The Dollar Tree brand of stores has been around since 1986, when Douglas Perry, Macon Brock, and Ray Compton founded the chain as a compliment to their other business, K & K Toys (Parnell, 2014). Through the years, Dollar Tree has acquired several different dollar store and low-end retail chains to grow their business to over 4000 stores (Shetty, 2010). One of the first and most strategic moves that the company made was to shift away from carrying closeout merchandise and to become more of a traditional variety store with a wide variety of basic goods all priced at a dollar or less. To accomplish this change, the chain had to discontinue their current purchasing strategies and had to begin buying directly from manufacturers to change the type of merchandise that they had available for consumers. The second major strategic move involved changing the location of where stores are usually located. Up until this point, the stores had been being in enclosed malls. With this change,

Over the last several years Dollar General has seen great success with the strategies currently in place. With potential changes in the economy and some situations presently in the company Dollar General must plan for the future. This memo was put together to identify our strengths and weakness, analysis the external factors of the company, and find options for the future. The options of where to invest our time and effort are; Geographic expansion within the U.S, Improve Merchandising Productivity, and Expand into Services. The recommendation chosen for the Dollar General was to pull back slightly on the current plan of expanding through building

Ragan Fretwell - Case 23: Walmart: But We Do Give Them a 10% Employee Discount

Dollar general have a certain chain of management starting at the top in the headquarters department located in Goodlettsville Tennessee.

To be successful, an organization always have to adapt to the environment and be ready to any changes or new competitors in the industry field. In order to do that, managers must sustain the organization structure by implementing the appropriate strategy that goes with the company situation also business strategy is very important if the organization seek to establish competitive advantage also its gives the ability to overcome the barriers that an organization may face. In general researches has sort the business strategy concept with many types, but the Miles and Snow typology in 1978 remains one of the most popular and frequently used approaches in studying business strategy. Miles and Snow type business firms into four sections. First, defenders which emphasis efficiency; second, prospectors which emphasis new product introduction; third, analyzers which follows the prospectors and finally reactors which have an inconsistent orientation to their environment.

A. Wal-Mart realized through third party studies and internal research that the Chinese customer were significantly more cost-sensitive than those in other countries and that there existed a strong, established culture of frequently shopping around to find the absolute lowest prices. Through these studies, Wal-Mart also realized that customer satisfaction level greatly influenced customer loyalty in China. The greatest determinant of this satisfaction was made up of perceived value. The perceived value is composed of three sub factors: (1) Product price, (2) Relative price and (3) Promotion. The other factors for customer satisfaction in descending order of its importance are Image,

We would like to show our gratitude to Resp. Prof. Mr. Sham Sharma, for providing us with the golden opportunity to prepare an intellectual report, on Distribution & Logistics Management of “wal-mart”.

Consumers have many choices when deciding where to purchase their goods. While retailer managers are deciding how to win the consumer’s business and increase revenue, they are also constantly trying to figure out ways to reduce costs. Technology helps retail managers improve areas of inventory and supply chain management as well as customer satisfaction and loss prevention (Green, 2002). This paper explains how technology