1. Based on the Miles and Snow strategy typology, Dollar Tree would be categorized as a prospector and an analyzer. Dollar Tree initially started off as a prospector when it was created as an off-shoot of the retail chain K &K Toys (Parnell, 2014). Prospectors focus on intrapreneurship, which involves the creation of new business ventures within an existing organization (Parnell, 2014). When K & K Toys was divested in 1991, it was done so in order to focus their energies on developing the concept of the dollar store, which in turn gave them the first mover advantage for being first in that particular market (Parnell, 2014). Just as prospector companies places priority on new product and service development to meet the changing needs and …show more content…
Creating uniqueness in your product or services typically involves creating distinct features, functionality, support, durability, and brand image that your customers value ((MindTools.com, 2015). Dollar Tree has uniform pricing of $1.00 or less in all of its stores and their locations are more convenient than that of the other discount retail stores such as Wal-Mart and Target. Because all of Dollar Tree’s products are priced at $1.00 or less, consumers find it easier to shop there and a more pleasant experience. Dollar Trees product assortment is different from the other discount retailers; they carry mostly private labels. The difference in product assortment combined with its pricing makes Dollar Tree less vulnerable to competition ((MindTools.com, 2015). Dollar Tree also attempts to differentiate their stores from others by making their stores easier to navigate through by being well organized and ensuring that their stores are well lit, clean and …show more content…
Dollar Tree’s acquisition of the Family Dollar stores will better equip them to compete with the leaders in the market such as Wal-Mart, Target, and Dollar General. The acquisition of Family Dollar establishes a new giant of the dollar-discount industry; Dollar Tree will expand significantly to 13,000 stores throughout the United States and Canada (DollarTree.com, 2015). This acquisition also increases Dollar Trees’ access to markets with lower incomes, increases their buying power and their ability to negotiate greater discounts from suppliers while still discovering ways to reduce
Everyone loves to save money. In the tough economic times of today, every dollar counts. For some families, saving twenty dollars a week can mean the difference between having food on the table or not. Whether out of necessity or just the thrill of getting a good deal, American families have been relying on “big box” retailers for inexpensive products for decades. There really is nothing quite like going into one store and being able to buy clothes, groceries, auto supplies, pet supplies and items for the home. An entire day’s worth of shopping can be done in one place at a fraction of the time, at very competitive prices. These same stores also hire hundreds of employees from the community and are thought to benefit the city and county greatly with their tax dollars.
Dollar Tree is an American chain of discount variety stores that sells items for $1 or less. Dollar Tree competes with other bargain stores like The Dollar General and Fred's retail stores. K&K Toys in Norfolk, Virginia was the original mall that the toy store started from. That toy store grew to over 130 stores on the East coast, which later would serve as the foundation for what expansion of the dollar stores. It was not until 1993, the name of the company “only $1.00” was changed to Dollar Tree Stores (Ziobro and Banjo, 2014). While increasing in popularity, Dollar Tree acquired Dollar Express in 2000, establishing in the process a new Distribution Center in Stockton, California. Dollar Tree with their best years ahead, earned a spot in
The purpose of this paper is to analyze and discuss the effectiveness of the Target Stores supply chain. Target was founded in 1902 by George Draper Dayton who after partnering with the owner of Goodfellow Dry Goods Company for a year decided he wanted to have more involvement, so he purchased Goodfellows renaming it Dayton Dry Goods Company. After purchasing the store Mr. Dayton remained in management until the time of his death in 1938. By this time the store had seen many changes including a name change in 1911 changing from Dayton Dry Goods Company to The Dayton Company, as well as an addition of the Dayton Foundation in 1918. After Mr. Dayton’s death the family continued managing the business until 1983 in which the last two managing Dayton’s retired, ending 80 years of the Dayton’s family management (Target Corporation, 2014).
Dick’s Dick’s stores visited: 45230 Northpointe Blvd, Utica, MI 48315 32385 Gratiot Ave, Roseville, MI 48066 Gather data on the following items for both companies: Name of both businesses. Give their locations and type of industry they represent. 1. Headquartered out of Corapolis, PennsylDick’s
Dollar Tree, Inc. describes itself as a business enterprise that is driven by the needs of its customers. The company aims at providing different items of value at the price of US$1 a piece. The running of the business of the Dollar Tree, Inc. variety store is anchored upon some tenets that define its mission. According to Dollar Tree (2016), the enterprise’s mission takes different dimensions. For instance, the company seeks to run its operations making some profits. It also seeks to strengthen its business partners to take advantage of the openings that come their way as well as the achievements and gains that the variety store realizes. Dollar Tree, Inc. also seeks to relate with its business partners, customers, and competitors in a truthful and thoughtful manner. The company further states that its mission is consistent with standards of monitored and cost-effective advancement (Dollar Tree, 2016).
Wal-Mart’s competitive environment is quite unique. Although Wal-Mart’s primary competition comes from general merchandise retailers, warehouse clubs and supermarket retailers also present competitive pressure. The discount retail industry is substantial in size and is constantly experiencing growth and change. The top competitors compete both nationally and internationally. There is extensive competition on pricing, location, store size, layout and environment, merchandise mix, technology and innovation, and overall image. The market is definitely characterized by economies of scale. Top retailers vertically integrate many functions, such as purchasing, manufacturing, advertising, and shipping. Large scale functions such as these give the top competitors a significant cost advantage over small-scale competition.
Some core competencies that must be exploited are: Brand Kmart is an existing well-known and trusted national brand in USA Kmart has private label and designer clothing that is well endorsed Infrastructure Kmart has a large number of well-located, low-cost, leased stores in urban far away from competitors through out the country ( Appendix B ). Staffing Confidence by the market in Kmart is created by the achievements of its staff and management. With the turn-around strategy in place, new blood has been put into the top management structures. In any renewal there will be retrenchment as unprofitable stores are closed. This can be used as an opportunity to retain and move high performing staff to where they are needed and to get rid of non-performing staff. Anderson the chairperson of Kmart is well supported by Wall Street and the board of Directors. These new staff members enter the company with needed skills to address problems in certain areas that previously were poorly managed such as inventory control and merchandising. Store locations, layout and Performance Stores conveniently located away from competitors like Wal-mart and Target therefore less to compete for customers face-to-face. There are 250 non-performing stores who have already been identified as being more cost effective to close than continue with running costs. Expertise exists in-house for the planning of store layout and appearance to meet different customer segments. This concentration of effort will enable focus on key areas Technology Kmart has already invested in good retailing systems. The system can be use to control inventory, supplier payments, track customer buying and monitor income versus profit margins across all stores. Research and Development The planning department is well established and in cross-functional to provide various perspective. The planning department to ensure that strategies at all levels are executed can further use the access to past data and knowledge of changes in buying patterns. Financial Backing JP Morgan Chase has agreed to support Kmart to avert the current threat of closure due to bankruptcy.
Key Issues: At the end of 2012, Costco was a successful business; however, there are some issues that they would need to deal with. These issues mainly arise from their previous successful ventures as a warehouse wholesale company. The first issue is that Costco has competitors that can actually be and are a threat to their success. Competition allows a company to improve itself and prove its prowess to its customers. However, when a competitor is able to provide the service at a much reduced cost, problems will arise.
Another thing to consider is a statement made on CNNmoney.com in regards to Dollar Generals consistent store growth that they are only "cannibalizing sales at their other stores and eroding their profits"
For Oliver’s Market among the five Competitive forces, pressures associated with the threat of new entrants into the market are the strongest one. Because Wal-Mart and Target had announced plans to develop regional supercenters in the Sonoma county region. They are strong candidates for entering the market, because they possess the res...
1. What is your assessment of the relative performance of the Dollar companies? What facts, ratios or metrics support your assessment? Following the 2008 recession, dollar store companies saw a rise in store earnings, while Walmart and Target experienced a decline.
Customer loyalty is another competitive advantage. Trader Joe’s doesn’t provide membership card to the customer, however customer still would like to choose Trader Joe’s just because of this
Another part of Amazon’s retail strategy is to serve as the channel for other retailers to sell their products and take a percentage of cut of every purchase. Amazon does not have to maintain inventory on slower-selling products. This strategy has made Amazon a ‘long tail’ leading retailer, expanding its available selection without a corresponding increase in overhead costs.
Burger King delivers value to their customers through their products, prices, and place and promotion strategies - (“BK doesn’t just promise value, they actually deliver value”). Burger king has been in existence for 60 years and is growing rapidly in many other countries. Burger King delivers quality, great tasting food which satisfies ones need or wants and captures the value of customers even before the first purchase is made. Burger King has products very unique from other competitors such as KFC and McDonalds. The difference is that Burger King does not limit their customers in terms of what they eat. For example, when I spoke to a customer also big fan of Burger King, he mentioned that the sauces are left public for the customer to decide on which sauce to have rather than giving the customer one kind of sauce such as McDonalds and KFC. The cold beverage is also self-help service in which customers can help themselves to a bottomless drink. This way the customer feels free to choose what satisfies the need or want.
Given the dominance and fiercely competitive nature of Wal-Mart and Target within the big box discount retail industry, Dollar General avoided competing head-to-head with these larger rivals by differentiating a classic generic bu...