Dollar General

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Vanessa Pileggi
Case Summary
3/25/13

Dollar General

In the case of Dollar General, CEO, David Perdue is analyzing ways in which he can continue to drive the growth of Dollar General, otherwise known as the leading company in the dollar store industry. While weighing his growth opportunities he questions which decision will be most beneficial to the company. Perdue asks himself, “Should we continue to drive growth through new stores openings? Or should we focus more on our existing stores and look to drive growth through merchandising and in-store operational improvements?”(Dollar General). Analyzing the company’s opportunities in relation to their past progress will lead Perdue to the most reasonable decision.

David Perdue’s search for Dollar General growth opportunities serves to maintain the company’s sustainable and leading presence in the dollar store industry. If Dollar General doesn’t continue to implement new opportunities it will begin to lag behind competitors, specifically Wal-mart, and instantly see a downturn. Staying competitive within the market and attractive to consumers is key for Dollar General to remain sustainable in the industry. By following through with the correct growth opportunities, David Perdue is able to keep Dollar General a leading competitor.

Dollar General has several growth opportunities to consider, each considering different components and segments of the company. These opportunities are as follows: Geographic expansion within the U.S, improve merchandising productivity, expand into services, go private and do an industry roll up, pursue new store format, or international expansion. Each opportunity holds potential for Dollar General, but deciding which opportunity holds the most is the difficulty for Perdue. Though Perdue has a slight advantage when making this decision. Being a close competitor with Wal-mart, a company who has already tested some of these opportunities, allows Perdue to benchmark...
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