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Company analysis on Dollar General Stores expanding into Britian - Research Paper Example

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This paper intends to analyze the scope of Dollar General Stores’ expansion to Britain.Dollar General Corporation is the United States’ largest small box discount retailer headquartered at Goodlettsville in Tennessee. The corporation operated over 9,300 stores in 35 US states as per the data of January 2011…
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Company analysis on Dollar General Stores expanding into Britian
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Download file to see previous pages The first Dollar General store opened in 1955 at Scottsville in Kentucky was based on the central concept that all items in the store would cost less than one dollar (“The founding family”). Within two years of it business commencement, the organization earned an annual sales of $5 million from its 29 stores. Four years after the death of the co-founder J.L. Turner, the company went public as Dollar General Corporation with more than $40 million annual sales and net income in excess of $1.5 million. In 1983, the company acquired the 280 stores of the P.N. Hirsh Division of Interco, Inc and subsequently in 1985, the company added 206 stores and warehouse of Eagle Family Discount Stores by another acquisition process.
The recent practices show that the company is constructing more stand-alone stores in remote areas where another general merchandise services are not reached. The most attractive feature of the Dollar General is that it offers both name brand and generic merchandise within the same store or even sometimes on the same shelf. The company mainly competes with national chains Family Dollar and Dollar Tree in the dollar store format whereas its regional competitors include number of independently owned stores. By the beginning of 21st century, the company launched “Dollar General Market” which is a store that carries a wider selection of grocery items. The developing home cooking trends helped the company in selling its grocery items. The Dollar General stores has grown notably within the short time period of 55 years. One of the major strengths of the company is that it has different potential customer groups that assist the organization to experiment with new business concepts. Newly emerging market segments also effectively contribute to company’s global competence. Similarly, the Dollar General maintains an efficient liquidity position which aids the organization to effectively and timely respond to unexpected contingencies. In addition, the firm performs well in all areas wherever it has business interests. Dollar General performs outstandingly in the ‘backyard’ of large SuperCenters and hence time and saturation pressures are reduced to a large extent. Business efficiency and operational regulations are found to be some of the competitive advantages of the Dollar General as these features significantly add to the organization’s market attractiveness. The company employs most recent developments of e-commerce in order to provide improved services to its customers. Recently, the Dollar General stores announced that it has selected Aldata Solution, a global leader in retail and distribution improvement software to meet the needs of the company’s next generation integrated supply chain solution (“Dollar general selects Aldata “). In addition, the firm makes use of satellite facilities to transmit selling information to the headquarters each evening. The e-trade techniques and the resulted global interconnectedness would greatly aid the organization ...Download file to see next pagesRead More
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