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2 Cards in this Set
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- Back
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Expanding into Services
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The second accompanying recommendation would be to expand into services. There is an opportunity to provide services of check cashing and wire transfers to an untapped market of nearly 33% of income earners over the age of 15 that do not have a bank account or that use it intermittently, a serviceable market of nearly 28 million Americans. Expansion into these services should be approached carefully as Dollar General will need to build competency in this area to ensure its profitability.
Service providers like the Check Cashing Store charge large fees and exuberant interest rates to amortize for their large overhead. Dollar General, as an Extreme-Value Retailer can take advantage of this untapped market by providing lower fees. Stores located in the southern portion of the country can emphasize the efforts due to its diverse migrant population. Ultimately, by expanding into services, Dollar General would be better able to serve its core customers and help strengthen same store sales growth. These avenues of approach are part of the strategic plan to focus on financial and operational viability. Some of the avenues offered for possible growth were not feasible due to their incompatibility of business strategy of Dollar General and were not supportive of the enterprise’s mission statement. |
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International Expansion
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First point to focus on is the fact that there is enough potential domestically and this effort should be focused on underperforming domestic stores.
Historically, no other Extreme-Value Chains have performed successfully internationally. |
