Dollar General Jacob Babcock Brian Fielder Matt Haskamp Kirk Howard Mike Russell
http://www.youtube.com/watch?v=O2R5eBVFX1s&feature=related Dollar General Commercial
Situation Analysis Dollar Store Concept – Woolworth Five and Dime – Strength Dollar General – 1939 – Turner family Wholesale to retail 1955- Kentucky Strong Mission Oriented Culture – Family 8,260 stores in 35 states 1990s – Expanded its product mix
Situation Analysis Majority of prices- $10 or less 30% - $1 or less Average store- excess of 1 million dollars Mission – Serving the customer Middle to lower class consumer Competes – convenience and price Example – 20 mins. compared to 50 mins.
Problem/Decision Statement How can Dollar General effectively and efficiently focus their growth?
Alternatives Introduce Dollar General presence in California Market expansion – Urban Areas Market expansion – Small, rural towns Joint venture with Walgreens Increase services offered- Money services Increase services offered- Pharmacy
Alternatives Change Retail Store Format Develop a Strategic Alliance with Wal-Mart Horizontal Integration International Expansion into Canada – US Border Cities Go private Expansion of products
Discussion Time Do you see any similarities/differences between our solutions and yours?
Analysis of Alternatives
Introduce Dollar General Presence in California Pros Large market Currently no major extreme-value presence Cons Cost Possible Rejection Advertising
Market Expansion – Urban Areas Pros New customer base High consumer traffic Cons High Expense Potential low customers interest High cost of advertising
Market Expansion – Rural Areas Pros Experience/relative ease Low competition from Wal-Mart Established presence in similar areas Low cost Cons Small customer base No new customer base High profits unlikely
Joint Venture with Walgreens Pros 253.6 billion dollar industry Leads industry- $39.5 billion in sales Diversify Sustainability Supply Chain Management Cons Cost Legal fees Implementation Time Focus