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To Hell With My Mba Essay

1781 words - 8 pages

The Dollar Tree has a unique store concept store concept, which includes a balance of core house hold supplies and specialty seasonal products priced at $1.00 (Selva, 2013). In other words, this concept is highly differentiated and the business is well positioned (Selva, 2013). The Dollar Tree is in a growth market, as a matter of fact, the Dollar Tree earnings per share have increased 62% between 2010 and 2012 and they are expected to grow another 23% within the next couple of years (Selva, 2013). The strategy that separates themselves and the competition is that everything in the store is priced at $1.00, which is the cornerstone of the store’s concept. The other impressive feature ...view middle of the document...

Dollar Tree is different from its main competitors Dollar General and Family Dollar Stores due to the Dollar Tree mostly targets the middle class, which has a higher personal disposable income than its competitors' low-income mix (Selva, 2013).


Selva, V. (April 16, 20130. 3 Reasons to Understand why Dollar Tree Leads the Pack. Retrieved May 26, 2014 from

Due to the recent success from the Dollar Tree stores, Wal-Mart is one of the strategic groups that have decided to launch several types of initiatives to regain some of Wal-Mart’s lost territory to the lower costing retails like Dollar Tree. Due to the trend, Wal-Mart strategically is now focused on its “price comparison” policy. As a matter of fact, Wal-Mart is running ads against retailers like the Dollar General. In addition, Wal-Mart has 219 "Neighborhood Markets" and 16 "small formats," and it plans to open 80 to 100 more this year to compete against the detail retail industry. Furthermore, the Family Dollar chain has over 8,000 stores from Maine to California, with physical sales close to 10.4 billion a new record for Family Dollar (, 2014). While the Dollar General Store has over 11,000 stores in over 40 states, with physical sales close to 17.5 billion (, 2014).

References Retrieved May 26, 2014 from Retrieved May 26, 2014 from

Selva, V. (April 16, 20130. 3 Reasons to Understand why Dollar Tree Leads the Pack. Retrieved May 26, 2014 from

A couple of things that Dollar Tree could do to still distinguish itself from the competitors are picking the right location as a matter of fact; cross-shoppers primarily chose a competitor due to convenience. The average round trip to a dollar store is six miles versus 30 miles for a typical Wal-Mart trip (, 2014). This means the cost of gas represents 11.4% of the cost of a dollar store transaction and 15.1% of a Wal-Mart transaction (, 2014). The next strategy against used in a declining market share is for the Dollar Tree to have a sale or some style of price promotion. The challenge is finding the price that maximizes transaction volume especially when everything is priced at a dollar and without sacrificing margin and it's a delicate balance to strike in price competitive industries like discount retail (Bryant, 2014).


Bryant, C. (May 14, 2014). What To Look For On Dollar Tree's Next Earnings Call - May 22

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