Comparing Dollar General's Financial Performance with that of Family Dollar Dollar General has been performing well financially ever since they were established in 1955. In its first 10 years of existence, Dollar General had grown to 255 stores with nearly $26 million in annual sales. In 2002, annual sales were $6.1 billion and there were 6,300 stores in 27 states in operation. Strategy shifts as well as major acquisitions allowed for Dollar General to continue performing well financially over the years. Even despite major accounting errors in 2001, Dollar General continued to increase their sales. Through Dollar Generals initiative and success, the door was open for others to thrive in the extreme-value retailing industry. One company that was able to take Dollar General's concept and use it for their own success was Family Dollar. Family Dollar is considered to be the main competitor of Dollar General. They have been able to expand faster in terms of geography than Dollar General has, with stores in 41 states. Financially, both companies have been performing well. Although the number of stores a company may have doesn't always equate to success financially, it usually is a sign that they are performing well. Over the period 1998-2002, Dollar General opened 2,371 new stores compared to Family Dollars' 1,599. Based on this number alone you might think that Dollar General is performing better financially. Over the period 2000-2001, Dollar General and Family Dollar both increased net sales by nearly 17 percent. However, Dollar General increased its net income from $70,642 to $207,513. The nearly 193 percent increas... ... middle of paper ... ...p a close eye on competitors. Since dollar stores compete with stores like Wal-mart and big supermarkets, it is essential to not lose potential customers to these stores. He needs to maintain a steady customer base by continuing doing what has been done in the past. Focus on the same demographic groups as before. In order to build stakeholder confidence and better the credibility of the business, David needs to understand their needs and desires and make decision based on these needs. He will need to make tradeoffs where necessary and give the bad news honestly and quickly. The key is to involve and communicate. "Stakeholder's need to know, that their needs are being addressed, their concerns are understood, and their input is valued."
Target Corporation main competitors are Walmart and Sears. While Walmart is leading their industry of major retail chains, Target is not far behind as they are currently ranked second amongst the major retail chains. In order to maintain their growth and competitive advantage, Target needs to pay close attention to their competitor’s market share, product quality and unique selling proposition in comparison to their own. Target should be analyzing their competition using metrics that will allow them to use that information to set objectives, rate their own performance, and plan for future success for the organization.
The revenue growth was due to an increase in Finish Line stores. The company was on a growth trajectory and its stores increased since 2011 at an overwhelming CAGR of 19%. The below chart shows the growth in the number of stores from 2011 to 2014.
Hoevel, A. (2005, July 15). Luxury camping: roughing it the easy way. CNN News. Retrieved
Historically, Dollar General operated in a highly price sensitive market segment, with 55% of its consumer base earning an average annual gross income of less than $40,000.[2] To attract these customers, Dollar General employed an Everyday Low Price strategy similar to Wal-Mart’s. Thus, keeping costs low and driving high traffic volumes were critical to the company’s financial success. Dollar General achieved this strategy in several ways, including keeping rents and labor costs low, locating in low-income, high traffic areas that offered consumers few substitutes, and offering a wide variety of popular CPG and white label goods.
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.
Albertson's main competitor is Wal-Mart. The biggest component in this rivalry is product cost and price. Because of their superior supply chain and extreme buying power, Wal-mart is able to sell at lower prices and obtain higher profit margins. Another area of competition between the companies is the location and services available. Due to the extended services Albertson's offers such as a butcher, baker, and gourmet coffee bars, they are able to outperform Wal-mart in urban areas. Other than the current contenders in this market, I don't feel that Albertson's has any major worries such as new entrants or other substitutes.
...rtain extent but eventually it will not be enough to continue setting up store after store as a means of deriving a profit. Dollar General will need to consider implementing a few more information technology systems in order to keep their current rate of growth and to continue to grow. With better systems they will be able to better track stock whilst on its delivery path, maintain stock control and minimise theft. These few changes would be bound to achieve more profit and get their desired shrink rate down to 1.75%
On January 22, 2002, Kmart filed for Chapter 11 bankruptcy protection becoming the largest retailer ever to do so in U.S. history. Most industry analysts attributed the immediate cause of the company's bankruptcy filing to a dull holiday season and stiff competition from WalMart and Target as the chain's more fundamental problem. But competition wasn't the root cause of Kmart's consistently poor performance. The real reason for Kmart's poor performance is that Kmart never had a marketing strategy. Kmart completely misunderstood its market and was positioning itself in the wrong direction. Also, on the strategic side, there are issues of where stores were located. On the whole, Kmart stores did not seem to be sited as well as the stores of the competition. Then there was the issue of technology. While Wal-Mart was becoming the relentless efficiency engine that we know today by investing in technology and streamlining the supply chain, Kmart held back. As Wal-Mart developed an infrastructure that enabled it to lower prices, Kmart slipped into a price disadvantage. This paper discusses these strategic problems that led to Kmart's poor performance.
Callistus, thank you for outlining the growth that Best Buy has achieved. Based on the information you’ve provided in your post, it’s noteworthy to mention additional data specified in Best Buy 10K report, and highlight critical success factors that this organization will be focusing on to maintain their competitive advantage. To your point, Best Buy has experience exponential consistent growth experiencing an increase in operating income for fiscal 2017 of 479 million which equates to 4.7% of their revenue, this was primarily due to an increase in gross profit rate and decrease in restructuring activity. Gross profit in 2016 increase by .9%, net income increase by 39.6% in 2016, and up 19.1% in fiscal 2017. Best Buy is in
Stakeholders are individuals, groups, and organisations with the power to influence the delivery of an organisation’s strategy and thus the organisation’s performance and/or a significant interest in an organisation’s strategy and thus the organisation’s performance (Wisniewski, 2001; Ackermann & Eden, 2011). In the context of the draft BSC to be developed, however, the analysis shall focus on relatively aggregated stakeholder groups. Firstly, the aim of this stakeholder analysis is not to pinpoint individual persons as stakeholders who may then be managed more easily than large organisations, but to identify rather broad stakeholder groups interested in Zara’s performance. Secondly, addressing
Within the five years of opening first store the family owned 24 stores with the total sales of
...Gap needs to take a close look at its expenses and where they are occurring. It should stop looking at expansion and concentrate on its employees and customers.
Assets turnover growth is impressive considering other competitors in the industry have closed many stores from losses caused by Amazon market share growth and Costco and Walmart low prices.
There is need to think of all people who are to be affected by the project or strategy, those who have influence or power over it or have an interest in its successful or unsuccessful conclusion. Stake holders for Delta corporation include:-
Dollar General: Dollar General seems a lot more stable when compared to Dollar Tree. All of Dollar Genera’s ratios seem to be pretty consistent over time. It looks as if the TIE ratio has increased decently from the year-end 2013 levels (20.05 times compared to 12.71 times). This improvement may be attributed to the fact that Dollar General has been able to reduce its interest expense and increase its earnings before taxes over the time period