Dollar general
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Dollar general Presentation Transcript

  • 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?