Question

Dollar General Corporation (DG) operates 16,000 stores in the USA. It has been relatively successful in some niche markets but stockholders expect increased profits/earnings per share/dividends/stock prices. Your task is to analyze the company from certain strategic perspectives and make recommendations on how the firm should adjust its strategy going forward.

Answer each of the following questions in a "short" paragraph:

1. Consider their business model and comment on the optimal way to increase market power through acquisitions.

Answer 1

To analyze the company, I used the SWOT analysis. As per SWOT Analysis, the DG corporation's main strength is customer satisfaction; they have a successful track order facility for developing new products and innovation, strong dealer community, string free cash flow, and highly skilled workforce.

Weaknesses of The corporation need more investment in new technology, the high attrition rate in the workforce, the organization structure is the only compatible with its present business model, and limited success outside the core business.

Opportunities are opening new markets; stable free cash flow provides opportunities to invest in new technologies.

Threats are low-quality products, intense level competition, the nonregular supply of innovative products, new environmental regulations.

As per my recommendations, To adjust its a strategy to going forward motivated their workforce, make more investment in innovation, lower the attrition date in the workforce, the business structure should be base on goals and objectives, is high-quality products, access the rules of the new market.

The business model of Dollar general corporation is customer segmentation and value propositional.

The optimal way to increase power through the acquisition by using vertical acquisition because it required when a firm acquires one or more its suppliers, increase the firm's market power, create better predictability.