Dollar Basic Essay


To: David Perdue, Chief Executive Officer, and Dollar General Coming from: Senior Consultant, Kenbex Asking

Date: The fall of 9, 2010

Re: Really does Dollar Standard have the proper strategy to keep a competitive advantage within their market? Executive Summary

The primary purpose of this Memorandum is to see whether Dollar General currently uses the right ways of maintain and sustain competitive advantage through this industry. Additionally , Kenbex Talking to will be looking into the issue of just how smaller organizations in the price tag industry, just like Dollar Standard, can stay and compete with larger companies such as Wal-Mart. To do so, Kenbex Consulting will be doing a detailed Sector analysis that includes Dollar General's competitors, customers, merchandise and location. Ken Talking to will follow this kind of by doing an in-depth organization analysis, that involves understanding Money General`s organization strategies. Finally, a detailed suggestion and setup plan will probably be included to aid and information Dollar Basic towards obtaining a sustainable competitive advantage. The issue with your enterprise is sustainability and deficiency of investment in technology to grow and move your enterprise forward. Industry Analysis

To know a company, it is crucial to identify whom its competition are, it is target consumers, the type of products sold, plus the location of the company. All of these makeup important aspects of a company industry analysis. Whom are the competition?

The low cost retail industry consists of many different stores, that could be further broken down in to many different portions. Dollar Basic falls underneath the category known as the dollar retail outlet and is the latest market segment leader above its close competitors in the same dollar store category, such as dollar Tree, Family members Dollar and Fred's. The dollar store industry homes four specific types of outlets. First, the first dollar shop, stuck towards the tradition of its predecessors, the five-and-dime stores. These were single price-point stores that adhered to the concept of selling each and every item looking for $1 or much less. Secondly, the close out merchants sold overstock, discontinued, excessive and distressed merchandise. The cost of products from this subcategory were mostly readily available for $1 dollar, but experienced inconsistencies in quality. There is also the limited assortment food retailer; these are small retailers with non-public labels foods with few units available at low prices. The ultimate value stores is the forth of this subcategory, which presented everyday affordable prices in a small package format. That were there a more focused assortment of items compared to mass retailers just like Wal-Mart and supercenters who also competed on the basis of large selection and value, while little box severe value merchants, such as your enterprise competed upon convenience and price. In spite of the low costs of products in the stores, you are still in a position to stock adequate nationally known brand products. In the extreme value segment, Dollar General has the most significant market share combined with Family Dollars. They control a significant percentage of the Money store retail market. The figure below presents the sales and number of stores together with other retailers available in the market. It also demonstrates that together, Dollars General and Family Dollars control over forty percent of the market share. | Sales| Store(000)| Percentage

Extreme Benefit Retailer| | |

Dollar General| $9200| 8260| 24. 2%

Family Dollar| 6200| 6272| 16. 58%

Fred`s | 1800| 701| 4. 74%

Single price point retailers| | |

Dollar Tree| 4000| 3192| 10. 53%

99 Pennies only| 1100| 245| installment payments on your 89%

Limited Assortment Grocery Retailers| | |

Save-a-lot| 5900| 1189| 15. 5%

Aldi| 4000| 800| 10. 53%

Close-out Retailers| | |

Big lots| 4700| 1385| 12. 37%

Tuesday Morning| 1000| 785| installment payments on your 63%

Total| $38000| 22880| 100%

Even though Dollar...

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