Dollar Tree's Business Strategy

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.

A better strategic management for the Dollar Tree company situated in America will help to organize qualitative and quantitative information in a way that allows effective decisions to be made under conditions of uncertainty. William argues that the best strategic management strategy should consist of the following forms that is evaluation of the strategy, formulation and finally implementation of the strategy. In this study, we will discuss how managers of Dollar Tree company can apply the strategic tools such as IFE, EFE, CPM, BCG matrix, Grand Strategy Matrix, and QSPM to not only establish a competitive market but also safeguard and sustain its position within the high rate of competition within the market (Williams,

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

Dollar Tree, Inc. is the world’s leading operator of the One Dollar variety stores. “The Company also offers value merchandise at prices above $1 at its 219 Deals stores and at prices of $1.25 CAD at its 210 stores in Canada. Overall, Dollar Tree operates more than 5,300 stores across the 48 contiguous United States and five Canadian Provinces, supported by a coast-to-coast logistics network and more than 90,000 associates. A Fortune 500 Company, Dollar Tree has served North America for more than twenty-eight years” (Annual Report Com, 2015). Dollar Tree’s Net sales for the second quarter of 2015 was $3.01 which is an increase from $2.03 billion in the year 2014 second quarter. Dollars Trees total liabilities and

There are numerous stores that fall into this category around the United States including a west coast competitor 99 Cents Only stores that has continued to grow. Until the Dollar Tree fully determines the ongoing plan for its traditional stores and the recent acquired Family Dollar locations, I believe that the Dollar Tree now operates in two separate groups one above the $1.00 threshold and one below. The traditional Dollar Tree stores have begun to lose profits as emphasis on cost reductions have been overshadowed by the acquisition. As of right now, it does not appear to be determined if the Dollar Tree will continue to operate in each of the segment groups of if future alignment is

which was founded in 1878 in Utica, New York. Other five-and-dime pioneers included W.T. Grant,

Currently, Dollar Tree has found itself a niche in the retail market by offering products that usually cost more than one dollar or less. From a consumer perspective, this is an ideal position to be in, because it places a consumer in a position where he or she does not have to search for the best bargain, it is readily available from this organization’s store chain. Therefore, the products from this company grabs the attention of consumers due to low cost pricing.

According to Reuters, “the Dollar Tree Inc., was incorporated in 2008, as discount retail stores” (2016, para. 1). Today, the company has 13,851 discount retail stores located throughout 48 states and five outside the United States (Reuters, 2016). Their competitors are Wal-Mart and Target (Reuters, 2016). The company has two segments. (Reuters, 2016). The first segment is the Dollar Tree, which “are discount variety stores offering merchandise at a fixed cost” (Reuters, 2016, para. 1). Their second segment is Family Dollar, which are “general merchandise retail discount stores providing consumers with a selection of merchandise in neighborhood stores” (Reuters, 2016, para. 1). According to Kurumi Fukushima, when the Dollar Tree were given

In 1970, Macon Brock, Doug Perry, and K.R. Perry started K&K Toys in Norfolk, Virginia. The toy store grew to over 130 stores on the East Coast which created the foundation to the store we now know as Dollar Tree. K & K toys were sold in 1991 and all assets were applied to the Dollar Tree stores which opened in 1991.  The Dollar Tree is headquartered in Chesapeake, Virginia and is known for the store with all items $1.00. By 2008 the brand had expanded and opened more than 3,000 stores gaining popularity which landed their name in 100th spot on the Fortune 500 list. In 2012, Dollar Tree ranked #39 as a Fortune 500 company leading the way in the dollar store sector operating in 48 states across the United States and Canada (Dollar Tree, 2017).

Dollar Tree can negatively affect the company’s financials as well as its brand image by not keeping up with most recent federal, state, or local laws. Dollar Tree is subject to a wide array of laws and regulations so it is important to view most recent laws and regulation changes, in order to minimize the exposure to legal risk, and to lower the risk of having an increase in expense. Changes in these areas could adversely affect the way Dollar Tree operates. Brand image is the key in gaining a competitive edge for Dollar Tree. Failure to comply with applicable laws might drive them out of the industry and lose its image it worked so hard for several years.Consumer spending has a substantial role in the success of Dollar Tree. Unfavorable

In 2008 they earned a spot on the Fortune 500 list and were also recognized for having the number one performing stock of the entire Fortune 500 for that year. They have enjoyed continuous growth in the United States and Canada with the opening of its 4000th store in 2010 and acquiring 86 Canadian Dollar Giant Stores in British Columbia which were the first stores located outside the United States. Today they have opened over 5000 stores and have created success in areas such as revenue growth, solid stock price performance, and growth in earnings per share, increase in net income and largely solid financial position with reasonable debt levels (Fukushima, 2015). This year they reached an agreement and won antitrust approval for a $9.2 billion acquisition of Family Dollar Stores by agreeing to sell 330 of the rival’s stores to a private equity firm, which in turn will make them the nation’s largest dollar-store chain (McCoy, 2015). The acquisition will generate a solid competitive edge in this market by allowing the company to continue offering discounted products while also introducing groceries and consumables which was originally offered at the Family Dollar

Dollar General Corporation (DG) operates in the deep-discounted retail industry. They offer products including groceries, clothing, cleaning supplies, and a variety of other items with prices typically ranging from $1 to $20.

In 2005, Goodlettsville, Tennessee-based Dollar General had over 7,500 stores in 30 states and more than $7 billion in sales. The company has grown more than 20% each year for

Without proper investors, not only is the Dollar Tree, Inc. in jeopardy of losing additional revenue but also the stakeholders already involved with the company. Stakeholders of Dollar Tree, Inc. include consumers, venders, current investors,