Dollar General SWOT Analysis

Dollar General is a chain of public discount variety stores based in United States covering up to 35 major states. The company traces its roots back in 1935 and is currently based in Goodlettsville, Tennessee, United States. The main motive of the company is to cell low cost products. The company is mainly the acquisition of private investors since 2007.

Strengths

• Company’s attractive and wide spread locations are its major strength as the company owns almost 9200 locations in 35 states.

• The company acquires relatively high revenue of $ 11.796 billion with net income of $339.442 million respectively.

• A relatively larger number of employees that is, 79,800 are offering their services at the stores.

• The company includes a number of products on its shelves, not all sold for a dollar as the name implies but the price range is flexible enough starting from few pennies to several dollars.

• Dollar general emphasizes in its extensive presence rather than looking for a sole place, that’s its openly serving those minor communities that doesn’t suits the big stores like wall Mart.

• The company is at 107th position in the world as its one of the biggest retailers using two word internet addresses.

• The company has a strong central management.

Weaknesses

• Dollar general grocery stores are successively experimented rather than a well defined strategy that finally should suit it.

• Labor unions and other related challenges are faced periodically producing turn over.

• The operating cost of the company is considerably high that is $953.258 million.

• Inconsistency in store marketing policies and strategies.

• Gender biased discrimination is reported about the staff operating at the stores.

Opportunities

• Beside the long lived trend of acquisitions of hundreds of stores of P.N. Hirsh Division of Interco, Inc., Eagle Family Discount Stores, and Interco, Inc; the company is now placing special emphasis in the manufacture of its Sole store especially in those area that are lacking such facilities. 

• The company has constantly been involved with the sponsorships offered to motor sports specially NASCAR, which has always been paying like other promotions do.

• The announcement has been made for 625 new stores by the Dollar General along with Connecticut, New Hampshire and Nevada.

• 6000 employees are planned to be enrolled for the upcoming projects of the company.

• The company is well executed through the social media coverage and positive attitudes of the customers in reply of that.

Threats

• The company faces certain consumer based pressures like that of fuel and unemployment, because of which discounted offers are more liable to sale.

• Wall Mart being the strongest holding potion all over America is posing a high threat for company’ stability. Moreover the flourishing competitors like Dollar tree is also large network in comparison to the company.

• Consuming products increasing day by day but with a little effect on the company’s profit due to external pressures like dollar rate decline.

References

• "Dollar General to open 625 new stores". (2011). News & Record. Associated Press.

• "Dollar General being acquired for $6.87B by equity firm". (2007). The Tennessean.

• Elzey, S. (2007). "Location part of store closing". Retrieved online from http://www.registerbee.com/servlet/Satellite?pagename=DRB%2FMGArticle%2FDRB_BasicArticle&c=MGArticle&cid=1173352055222.