Dollar General is an NYSE-traded American chain of retail stores that sells a wide range of
Question:
Dollar General is an NYSE-traded American chain of retail stores that sells a wide range of household goods at a low price. As of February 2019, Dollar General operates more than 15,000 stores in the United States, mostly in rural and suburban areas. Along with Dollar Tree and Family Dollar (Dollar Tree acquired Family Dollar in 2015), it is among the three leading dollar-store chains. While many retail stores have been closing, Dollar General is growing. In 2019, it announced a plan to open 1,000 new stores and remodel 1,500 existing stores.
Dollar General has gained a competitive advantage by targeting low-income customers, that is, households making $40,000 or less a year, by offering prices that are 20% to 40% lower than grocery and drug stores.
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Post your thoughts on
a) how Dollar General is able to pursue a cost leadership strategy to achieve a competitive advantage by referring to the cost drivers and
b) whether Dollar General should work on better serving the communities even though it could negatively influence Dollar General's competitive advantage.
Expert Answer:
a Cost Leadership Strategy Dollar General has successfully pursued a cost leadership strategy primarily targeting lowincome customers Several key fact... View the full answer
