Dollar General
Memorandum
To: David Perdue, Chief Executive Officer, and Dollar General
From: Senior Advisor, Kenbex Consulting
Date: November 9, 2010
Re: Does Dollar General have the right strategy to maintain a competitive advantage in their market?
Executive Summary
The primary aim of this Memorandum is to determine if Dollar General currently uses the right strategies to maintain and sustain competitive advantage in this industry. In addition, Kenbex Consulting will be looking into the issue of how smaller firms in the retail industry, such as Dollar General, can stay and compete with larger companies such as Wal-Mart. To do so, Kenbex Consulting will be doing a detailed Industry analysis that includes Dollar General’s competitors, customers, merchandise and location. Ken Consulting will follow this by doing an in-depth company analysis, which involves understanding Dollar General`s business strategies. Finally, a detailed recommendation and implementation plan will be included to support and guide Dollar General towards getting a sustainable competitive advantage. The major issue with your company is sustainability and lack of investment in technology to grow and move your company forward.
Industry Analysis
To understand a company, it is very important to identify who its competitors are, its target consumers, the type of products sold, and the location of the company. All of these make up important aspects of a company industry analysis.
Who are the competitors?
The discount retail industry consists of several different stores, which could be further broken down into many different segments. Dollar General falls under the category known as the dollar store and is the current market segment leader above its close competitors in the same dollar store category, such as dollar Tree, Family Dollar and Fred’s. The dollar store industry houses four distinct types of retailers.
First, the original dollar store, stuck to the tradition of its predecessors,
To: David Perdue, Chief Executive Officer, and Dollar General
From: Senior Advisor, Kenbex Consulting
Date: November 9, 2010
Re: Does Dollar General have the right strategy to maintain a competitive advantage in their market?
Executive Summary
The primary aim of this Memorandum is to determine if Dollar General currently uses the right strategies to maintain and sustain competitive advantage in this industry. In addition, Kenbex Consulting will be looking into the issue of how smaller firms in the retail industry, such as Dollar General, can stay and compete with larger companies such as Wal-Mart. To do so, Kenbex Consulting will be doing a detailed Industry analysis that includes Dollar General’s competitors, customers, merchandise and location. Ken Consulting will follow this by doing an in-depth company analysis, which involves understanding Dollar General`s business strategies. Finally, a detailed recommendation and implementation plan will be included to support and guide Dollar General towards getting a sustainable competitive advantage. The major issue with your company is sustainability and lack of investment in technology to grow and move your company forward.
Industry Analysis
To understand a company, it is very important to identify who its competitors are, its target consumers, the type of products sold, and the location of the company. All of these make up important aspects of a company industry analysis.
Who are the competitors?
The discount retail industry consists of several different stores, which could be further broken down into many different segments. Dollar General falls under the category known as the dollar store and is the current market segment leader above its close competitors in the same dollar store category, such as dollar Tree, Family Dollar and Fred’s. The dollar store industry houses four distinct types of retailers.
First, the original dollar store, stuck to the tradition of its predecessors,