The discount retailer industry is largely represented by several key players. An important note from our text is the identification of the specific industry in which an organization is participating. The discount retail industry includes such mega giants as Costco, Wal-Mart, Kmart, but Dollar Tree does not compete directly with organizations such as those. Similar to the identification of McDonalds is in the restaurant industry but most directly identified as fast-food. As I write this sentence, a Dollar Tree is being built across the street from Wal-Mart and next to McDonalds in the small town of 5500 residents. At the time of our text Dollar General, Family Dollar and Dollar Tree comprised the majority market in low cost retailers. In 2015, Dollar Tree distinguished itself by acquiring the Family Dollar, giving that segment of the
…show more content…
1). The competitive strategy is pay to play and Dollar Tree signified their intentions with a groundbreaking acquisition. Now that they have both brands and will operate each brand separately, the Family Dollar brand will not sell all items at a fixed price, so the strategy will enable them to compete more efficiently with Dollar General, who lacks fixed point pricing. However, Dollar Tree will continue to operate in the fixed price market. This will add significant diversity to the Dollar Tree portfolio and addresses the question of how to distinguish itself from industry competitors. One change that Dollar Tree should look into is the reliance on the China for such a large portion of their manufactured products. Dollar Tree and Family Dollar attract a different clientel, as well as sell different type products. Dollar Tree is very dependant on the cheaper made wholesale items it can purchase that may or may not be at the stores each time a consumer shops but are always around a dollar. Family Dollar on the other hand sells can goods and boxed foods that are more highly priced but items are consistently offered by the
1). The competitive strategy is pay to play and Dollar Tree signified their intentions with a groundbreaking acquisition. Now that they have both brands and will operate each brand separately, the Family Dollar brand will not sell all items at a fixed price, so the strategy will enable them to compete more efficiently with Dollar General, who lacks fixed point pricing. However, Dollar Tree will continue to operate in the fixed price market. This will add significant diversity to the Dollar Tree portfolio and addresses the question of how to distinguish itself from industry competitors. One change that Dollar Tree should look into is the reliance on the China for such a large portion of their manufactured products. Dollar Tree and Family Dollar attract a different clientel, as well as sell different type products. Dollar Tree is very dependant on the cheaper made wholesale items it can purchase that may or may not be at the stores each time a consumer shops but are always around a dollar. Family Dollar on the other hand sells can goods and boxed foods that are more highly priced but items are consistently offered by the