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Dollar general
 

Dollar general

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    Dollar general Dollar general Presentation Transcript

    • 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.
    • SWOT Analysis
    • Problem/Decision Statement
      How can Dollar General effectively and efficiently focus their growth?
    • Alternative Solutions
    • 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
    • Money Services
      Pros
      Convenience
      Added benefit for target market
      Cons
      Minimal profits
      Opportunity costs
    • Pharmacy
      Pros
      253.6 billion dollar industry
      Increase customer base
      Substantial profits
      Added convenience to current market
      Cons
      Expensive
      Liability
      Strict Regulations
    • Change Retail Store Format
      Pros
      Close under-performing stores
      More selling space
      Customer perception
      Cons
      Poor customer reception
      Rising prices
      Implementation cost
    • Strategic Alliance with Wal-Mart
      Pros
      Increased sales
      Improved location
      Cons
      Difficult to maintain business relationship
      Different company focuses
    • Horizontal Integration
      Pros
      Increased market share
      Cons
      Potential monopoly
      High costs
      Expected gains may not materialize
    • International Expansion in US – Border Cities
      Pros
      Bigger Reach
      New Market
      EVD widely accepted internationally
      Cons
      Risky
      Cultural Differences
      Hurt chances of success
    • Go Private
      Pros
      Focus on long term
      Goals and Objectives
      Sustainability
      Cons
      Could hurt in short term
      Less Publicity
    • Expansion of Products – Grocery Section
      Pros
      Wider variety of customers
      Compete with
      Wal-Mart
      Cons
      Lose dollar store feel
      Costly
      Time, effort, and money
    • Evaluating the Alternatives
    • Changing Retail Format
    • Questions?