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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<br />Jacob Babcock<br />Brian Fielder<br />Matt Haskamp<br />Kirk Howard <br />Mike Russell<br />
  • 2. http://www.youtube.com/watch?v=O2R5eBVFX1s&feature=related<br />Dollar General Commercial<br />
  • 3. Situation Analysis<br />Dollar Store Concept – Woolworth <br />Five and Dime – Strength<br />Dollar General – 1939 – Turner family<br />Wholesale to retail<br />1955- Kentucky<br />Strong Mission Oriented Culture – Family<br />8,260 stores in 35 states<br />1990s – Expanded its product mix<br />
  • 4. Situation Analysis<br />Majority of prices- $10 or less<br />30% - $1 or less<br />Average store- excess of 1 million dollars<br />Mission – Serving the customer<br />Middle to lower class consumer<br />Competes – convenience and price<br />Example – 20 mins. compared to 50 mins.<br />
  • 5. SWOT Analysis<br />
  • 6. Problem/Decision Statement<br />How can Dollar General effectively and efficiently focus their growth?<br />
  • 7. Alternative Solutions<br />
  • 8. Alternatives<br />Introduce Dollar General presence in California<br />Market expansion – Urban Areas<br />Market expansion – Small, rural towns<br />Joint venture with Walgreens<br />Increase services offered- Money services<br />Increase services offered- Pharmacy<br />
  • 9. Alternatives<br />Change Retail Store Format<br />Develop a Strategic Alliance with <br /> Wal-Mart<br />Horizontal Integration<br />International Expansion into Canada – US Border Cities<br />Go private<br />Expansion of products<br />
  • 10. Discussion Time<br />Do you see any similarities/differences between our solutions and yours?<br />
  • 11. Analysis of Alternatives<br />
  • 12. Introduce Dollar General Presence in California<br />Pros<br />Large market<br />Currently no major extreme-value presence<br />Cons<br />Cost<br />Possible Rejection<br />Advertising<br />
  • 13. Market Expansion – Urban Areas<br />Pros<br />New customer base<br />High consumer traffic<br />Cons<br />High Expense<br />Potential low customers interest<br />High cost of advertising<br />
  • 14. Market Expansion – Rural Areas<br />Pros<br />Experience/relative ease<br />Low competition from Wal-Mart<br />Established presence in similar areas<br />Low cost<br />Cons<br />Small customer base<br />No new customer base<br />High profits unlikely<br />
  • 15. Joint Venture with Walgreens<br />Pros<br />253.6 billion dollar industry<br />Leads industry- $39.5 billion in sales<br />Diversify<br />Sustainability<br />Supply Chain Management<br />Cons<br />Cost<br />Legal fees<br />Implementation<br />Time<br />Focus<br />
  • 16. Money Services<br />Pros<br />Convenience<br />Added benefit for target market<br />Cons<br />Minimal profits<br />Opportunity costs<br />
  • 17. Pharmacy<br />Pros<br />253.6 billion dollar industry<br />Increase customer base<br />Substantial profits <br />Added convenience to current market<br />Cons<br />Expensive<br />Liability<br />Strict Regulations<br />
  • 18. Change Retail Store Format<br />Pros<br />Close under-performing stores<br />More selling space<br />Customer perception<br />Cons<br />Poor customer reception<br />Rising prices<br />Implementation cost<br />
  • 19. Strategic Alliance with Wal-Mart<br />Pros<br />Increased sales<br />Improved location<br />Cons<br />Difficult to maintain business relationship<br />Different company focuses<br />
  • 20. Horizontal Integration<br />Pros<br />Increased market share<br />Cons<br />Potential monopoly<br />High costs<br />Expected gains may not materialize<br />
  • 21. International Expansion in US – Border Cities<br />Pros<br />Bigger Reach<br />New Market<br />EVD widely accepted internationally<br />Cons<br />Risky<br />Cultural Differences<br />Hurt chances of success<br />
  • 22. Go Private<br />Pros<br />Focus on long term<br />Goals and Objectives<br />Sustainability<br />Cons<br />Could hurt in short term<br />Less Publicity<br />
  • 23. Expansion of Products – Grocery Section<br />Pros<br />Wider variety of customers<br />Compete with <br /> Wal-Mart<br />Cons<br />Lose dollar store feel<br />Costly<br />Time, effort, and money<br />
  • 24. Evaluating the Alternatives<br />
  • 25. Changing Retail Format<br />
  • 26. Questions?<br />

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