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Dollar general
Dollar general
Dollar general
Dollar general
Dollar general
Dollar general
Dollar general
Dollar general
Dollar general
Dollar general
Dollar general
Dollar general
Dollar general
Dollar general
Dollar general
Dollar general
Dollar general
Dollar general
Dollar general
Dollar general
Dollar general
Dollar general
Dollar general
Dollar general
Dollar general
Dollar general
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Dollar general

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  • 1. Dollar General
    Jacob Babcock
    Brian Fielder
    Matt Haskamp
    Kirk Howard
    Mike Russell
  • 2. http://www.youtube.com/watch?v=O2R5eBVFX1s&feature=related
    Dollar General Commercial
  • 3. 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
  • 4. 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.
  • 5. SWOT Analysis
  • 6. Problem/Decision Statement
    How can Dollar General effectively and efficiently focus their growth?
  • 7. Alternative Solutions
  • 8. 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
  • 9. 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
  • 10. Discussion Time
    Do you see any similarities/differences between our solutions and yours?
  • 11. Analysis of Alternatives
  • 12. Introduce Dollar General Presence in California
    Pros
    Large market
    Currently no major extreme-value presence
    Cons
    Cost
    Possible Rejection
    Advertising
  • 13. Market Expansion – Urban Areas
    Pros
    New customer base
    High consumer traffic
    Cons
    High Expense
    Potential low customers interest
    High cost of advertising
  • 14. 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
  • 15. 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
  • 16. Money Services
    Pros
    Convenience
    Added benefit for target market
    Cons
    Minimal profits
    Opportunity costs
  • 17. Pharmacy
    Pros
    253.6 billion dollar industry
    Increase customer base
    Substantial profits
    Added convenience to current market
    Cons
    Expensive
    Liability
    Strict Regulations
  • 18. Change Retail Store Format
    Pros
    Close under-performing stores
    More selling space
    Customer perception
    Cons
    Poor customer reception
    Rising prices
    Implementation cost
  • 19. Strategic Alliance with Wal-Mart
    Pros
    Increased sales
    Improved location
    Cons
    Difficult to maintain business relationship
    Different company focuses
  • 20. Horizontal Integration
    Pros
    Increased market share
    Cons
    Potential monopoly
    High costs
    Expected gains may not materialize
  • 21. International Expansion in US – Border Cities
    Pros
    Bigger Reach
    New Market
    EVD widely accepted internationally
    Cons
    Risky
    Cultural Differences
    Hurt chances of success
  • 22. Go Private
    Pros
    Focus on long term
    Goals and Objectives
    Sustainability
    Cons
    Could hurt in short term
    Less Publicity
  • 23. Expansion of Products – Grocery Section
    Pros
    Wider variety of customers
    Compete with
    Wal-Mart
    Cons
    Lose dollar store feel
    Costly
    Time, effort, and money
  • 24. Evaluating the Alternatives
  • 25. Changing Retail Format
  • 26. Questions?

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