Dollar General<br />Jacob Babcock<br />Brian Fielder<br />Matt Haskamp<br />Kirk Howard <br />Mike Russell<br />
http://www.youtube.com/watch?v=O2R5eBVFX1s&feature=related<br />Dollar General Commercial<br />
Situation Analysis<br />Dollar Store Concept – Woolworth <br />Five and Dime – Strength<br />Dollar General – 1939 – Turne...
Situation Analysis<br />Majority of prices- $10 or less<br />30% - $1 or less<br />Average store- excess of 1 million doll...
SWOT Analysis<br />
Problem/Decision Statement<br />How can Dollar General effectively and efficiently focus their growth?<br />
Alternative Solutions<br />
Alternatives<br />Introduce Dollar General presence in California<br />Market expansion – Urban Areas<br />Market expansio...
Alternatives<br />Change Retail Store Format<br />Develop a Strategic Alliance with <br />   Wal-Mart<br />Horizontal Inte...
Discussion Time<br />Do you see any similarities/differences between our solutions and yours?<br />
Analysis of Alternatives<br />
Introduce Dollar General Presence in California<br />Pros<br />Large market<br />Currently no major extreme-value presence...
Market Expansion – Urban Areas<br />Pros<br />New customer base<br />High consumer traffic<br />Cons<br />High Expense<br ...
Market Expansion – Rural Areas<br />Pros<br />Experience/relative ease<br />Low competition from Wal-Mart<br />Established...
Joint Venture with Walgreens<br />Pros<br />253.6 billion dollar industry<br />Leads industry- $39.5 billion in sales<br /...
Money Services<br />Pros<br />Convenience<br />Added benefit for target market<br />Cons<br />Minimal profits<br />Opportu...
Pharmacy<br />Pros<br />253.6 billion dollar industry<br />Increase customer base<br />Substantial profits <br />Added con...
Change Retail Store Format<br />Pros<br />Close under-performing stores<br />More selling space<br />Customer perception<b...
Strategic Alliance with Wal-Mart<br />Pros<br />Increased sales<br />Improved location<br />Cons<br />Difficult to maintai...
Horizontal Integration<br />Pros<br />Increased market share<br />Cons<br />Potential monopoly<br />High costs<br />Expect...
International Expansion in            US – Border Cities<br />Pros<br />Bigger Reach<br />New Market<br />EVD widely accep...
Go Private<br />Pros<br />Focus on long term<br />Goals and Objectives<br />Sustainability<br />Cons<br />Could hurt in sh...
Expansion of Products – Grocery Section<br />Pros<br />Wider variety of customers<br />Compete with <br />    Wal-Mart<br ...
Evaluating the Alternatives<br />
Changing Retail Format<br />
Questions?<br />
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Dollar general

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Transcript of "Dollar general"

  1. 1. Dollar General<br />Jacob Babcock<br />Brian Fielder<br />Matt Haskamp<br />Kirk Howard <br />Mike Russell<br />
  2. 2. http://www.youtube.com/watch?v=O2R5eBVFX1s&feature=related<br />Dollar General Commercial<br />
  3. 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. 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. 5. SWOT Analysis<br />
  6. 6. Problem/Decision Statement<br />How can Dollar General effectively and efficiently focus their growth?<br />
  7. 7. Alternative Solutions<br />
  8. 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. 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. 10. Discussion Time<br />Do you see any similarities/differences between our solutions and yours?<br />
  11. 11. Analysis of Alternatives<br />
  12. 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. 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. 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. 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. 16. Money Services<br />Pros<br />Convenience<br />Added benefit for target market<br />Cons<br />Minimal profits<br />Opportunity costs<br />
  17. 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. 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. 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. 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. 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. 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. 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. 24. Evaluating the Alternatives<br />
  25. 25. Changing Retail Format<br />
  26. 26. Questions?<br />
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