Running head: Dollar General 1 Dollar General Columbia College RUNNING HEAD: Dollar General 2 Dollar General Dollar General is the leader when it comes to discount dollar stores with an annual profit of more than $12.73 billion a year. The major competition in the dollar discount stores for Dollar General in order are Family Dollar and the Dollar Tree. Another key player in discount stores is Walmart, although not a dollar discount store Walmart dominates all markets with $419.24 billion in revenue. 2011 brought on a year of expansion for Dollar General with plans to open up 650 new stores and remodel another 550 creating 6.000 new jobs in additional employees. Dollar General in owned by Koldberg Kravis Roberts & Co. L.P (KKR) who own more than 79% of all shares in Dollar General.
Sam and Helen put together 95% of the funds for this first store in Rogers, Arkansas (Wal-Mart). Sam’s previous experience taught him the ins and outs of purchasing for a retail market. He had a notion that if he could pass on the savings to his customers that he received from purchasing deals, then he could corner a market based on low prices and increase his profits through bulk or volume selling at these low prices. This idea was an instant success, and is the foundational business strategy for Wal-Mart. Immediate Growth By 1967 Wal-Mart had 24 stores in Arkansas, but the Walton brothers had a much bigger vision.
Marketing – Summer 2013 (Assignment 1: Walmart Case; Submitted by: Rohan Saldanha) 1. What are Wal-Mart’s key success factors in the United States? Evaluate the difficulties in transferring these key success factors to other nations? Walmart has been a success in the United States due to a variety of factors. Firstly, most of its supercenters are about 185,000 square feet and offer a plethora of groceries, electronics and other consumer goods at prices that are rarely matched.
The income statement’s total revenues doubled in two years due to their unusual growth. The problem to behind income statement and balance sheets stems from their company owned and franchised factories; instead of selling the donuts, the company sold machinery to make their products. The goodwill and required franchise rights doubled each year until 2004 which raised questions and concerns as to whether Krispy Kreme improperly implemented accounting treatments. Compared to the industry, Krispy Kreme was apparently a very high performing company, but we questioned the performance data. First problem we encountered were the current and quick ratios were unusually high due to the amount of cash, receivables and short term investments that Krispy Kreme held.
Financial structure and management fit with its overall financial strategy Walmart’s operations comprised of three segments: Walmart U.S. which includes all the company’s mass merchant concept in the U.S., International segment which consists of retail operations in 14 countries and Puerto Rico, while Sam’s Club segment includes the warehouse membership clubs in the U.S. The total sales of the company increasing yearly from year 2006 to 2010, due to their global store expansion programs, comparable store sales increases and acquisitions. Besides that, Walmart always double the amount they were spending on television advertising during the holiday season. The company has worked more than a year on improving inventory levels by hiring two firms – Acosta Inc. in the U.S. and Retail Insight in the U.K., to walk the aisles and monitor stocking levels. They believe in making better on product availability and inventory, the real risk that the customers take their basket elsewhere when there are items out of stock will be reduced.
Wal-Mart operates more than 7,000 stores. (Wal-Mart Corporate Website) The corporate strategy of Wal-Mart is to sell everything people need at low price. As founder Sam Watson said, goal of Wal-Mart is to save people money so that they can live better. This is the focus that underlies everything Wal-Mart does. (Wal-Mart Corporate Website) Huge turnover, large customer base and returning customers show that Wal-Mart has been able to achieve this goal in its 50 years of existence.
Frito-Lay, Inc. Sun Chips™ Multigrain Snacks Market Analysis The snack chip category is very competitive. As many as 650 snack chip products are introduced each year by national and regional brand companies. Most of these products are new flavor for existing lines of snack chips. The new-product failure rate for snack chips is high. It has been reported that less than 1 percent of new products generate more than $25 million in first year of sales.
Competitor Analysis Overstock.com Overstock.com is an online retailer that offers discounted brand name, non-brand name, and closeout merchandise from surplus inventories of manufacturers and retailers. The company currently employees 1,300 employees at a growth rate of 13.3%. Some of the products that Overstock.com has in their inventories includes: Books, CD’s, DVD’s, Video Games, furniture, clothing & shoes, Office Supplies, electronics, home & garden, jewelry, sporting goods, and health & beauty products. Since its inception in 2007, Overstock.com has reported yearly net losses due to high operating costs. In total, Overstock.com earned $1.05 billion in revenue for FY 2010 which was an increase of 23.4% from the previous year.
The book value per share of Alamo group is lower than its market share showing that the shares are overvalued. Though there is a consistent growth in the company’s book value showing that its future is good. There is consistent growth in the earnings per share of the company. This shows that even in the increase of its shareholders there is low dilution of its earnings meaning that they are increasing. There is an increase in the consistent growth in the sales though the increase is low in the fourth year this shows stability.
INTRODUCTION Wal-Mart , a discounted retailer store, was started in the 1962. It growth remained stagnant since 1970s except in 1990s when its growth rate was moderate. Its revenue has reached more than US$ 400 billion and has more than 2 million employees. It has opened up its stores in 15 different countries and in addition to being a retailer, it has become the largest seller of groceries in United States. As an owner of Sam’s Club, it provides products in bulk to people who pay for a membership, much like Costco.