Dollar General has built its cost advantage through ensuring that its
stores are close and well distributed all over the region. This makes
distribution of commodities to the stores easier and cost-effective
since distribution cost is mitigated (Shih et al, 2009). This makes the
Dollar General to build a cost advantage in providing services to the
people. Besides, through the use of technology, dollar general has built
its cost advantage through ensuring effective and efficient service
delivery. In addition, Dollar General has built its cost advantage
through effective store management (Shih et al, 2009).
Dollar General and Wal-Mart offer almost the same commodities. This
implies that Dollar General has an opportunity of competing directly
with Wal-Mart. In case the stores were dealing with totally different
commodities, Dollar General could have competing strategies that focus
on competing indirectly with the Wal-Mart stores. Offering of household
commodities, health and beauty commodities by the two stores (Shih et
al, 2009) opens an avenue for direct competition. Therefore, dollar
General should compete directly with the Wal-Mart stores. In fact,
direct competition should be highly encouraged since it can offer an
opportunity for improving the commodities and services that the two
stores offer.
One of the recommendations to the Dollar General concerning its
strategic alternatives involves increasing efficiency in store
management. Dollar General should continue managing its stores
efficiently through the involvement of technology this will help in
reducing operating costs which will be a competitive advantage to Dollar
General. Besides, dollar General should concentrate on charging a low
price for its commodities this will also give the chain store a
competitive advantage over other stores offering similar commodities. In
addition, Dollar General should also consider adding its stalls. This
will help the chain store in increasing its sales volume.
Shih, W., Kaufman, S. & Mckillican, R. (2009, April 28th). Dollar
General (A). Harvard Business School.

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