Essay on Dollar Tree Analysis

1400 Words Dec 29th, 2015 6 Pages
Dollar Tree Analysis Name: Date: Analyze the business-level strategies
The sluggish economy has created a perfect storm in favor of the retail business. Dollar Tree, Wal-Mart, and Dollar General have generated significant profits as a result of the sluggish economy. These firms have embraced the financial opportunity amid consumer pessimism.
This evaluation will disgust the business level-strategy practiced by Dollar Tree. We will discuss its strength, weakness, opportunity, and threats. The organization strength has made it possible to respond to realistic opportunities. The firm’s decision makers thrive to
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Executives heading the research and development department understand the need to expand beyond the U.S. Therefore, they saw the opportunity for Dollar Tree to enter the Canadian market. As a result, in the past three years, they have acquired stores home and abroad to enhance their demographic segment.
Their strategy is paying off. The more stores they own the more they exposed the Dollar Tree brand. New market segments make it difficult for its toughest competitor (Wal-Mart) to compete. As previously mention, Dollar Tree has 10 times the number of stores compared to Walmart. This is a proven corporate strategy that gives Dollar Tree an edge in the industry.
If you ever had the opportunity to purchase at Dollar Tree, you probably notice the low prices and the courteous employees. Without them this organization cannot compete. You may also notice the strategically location of each product, this is not a coincident, rather is a strategy to get consumers to purchase more products quicker.
Wal-Mart’s emphasis on low cost is an example of what we consider a business-level strategy, which is Wal-Mart motto and basic theme. This is a threat to Dollar three because Wal-Mart has the ability to keep consumers in their store longer than Dollar Tree. As a result, Dollar Tree’s floor traffic declines. That has enable Wal-Mart to lower its prices and diversify ist products. These decisions were undertaken at the

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