Dollar General Case Study
Q1: Describe Dollar General's business strategy. What has the company been so successful?
A1: Dollar General's main business strategy is to focus on being the leading distributors of consumable basics, with 30% of the merchandise at $1.00 or less. Dollar General believes in maintaining an assortment of consumable merchandise and making shopping for everyday items hassle free and simplistic.
Deriving most of their customer basis from Low, Middle and fixed income earners. With under-serviced rural and urban neighbourhoods being the bench mark of their locations.
The company's success can only be derived from its current ability to keep costs to a low, employing minimum staff to operate each store as one point. Another would be stock in general; keeping it at a low price enables more of the item to be sold. Finally Dollar Generals policy's on getting a store ready and opened in 8 days or less. This in term would also generate enough hype and attention to a new stores opening without the means of expensive advertisement.
Dollar General keep their stock range fairly basic, only having important consumables, clothing some food items and seasonal and promotional products, this enables them to keep prices of items low with the maximum price of an item found in a Dollar General store being $35.00
The only real Information systems used in each Dollar General store is their satellite link up (space net) and the POS (point of sale) software Triverstiy which enables headquarters with the day's sales information.
Stock control is simply done by presuming certain amount of stock is being delivered which of course has a down side as well.
In summery Dollar Generals success rate can purely be based on its Target market, keeping products and pricing in check with this target market and also their store locations. Their policies on a fast turn around when opening a new store, and lastly its ability...
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