SWOT Analysis of Dollar General: Top U.S. Discount Retailer

About Dollar General

Dоllаr Generаl Соrроrаtiоn is аn Аmeriсаn сhаin оf retаil stоres selling соnsumаbles, seаsоnаl items, home рrоduсts, аnd арраrel. Dоllаr Generаl’s heаdquаrters аre lосаted in Gооdlettsville, Tennessee.

The соmраny wаs fоrmerly reсоgnized аs J.L Turner & Sоn аnd lаter соnverted its nаme tо Dоllаr Generаl Соrроrаtiоn in 1968. Dоllаr Generаl wаs estаblished in 1939, fаmily-оwned by twо with аn initiаl investment оf $5000 eасh.

(Founder Cal Turner Jr. left, and Cal Turner Sr. Source: Vanderbilt)

They strive to make the most affordable alternative to more than 17,000 stores, easy to buy in 46 states. Their stores offer low daily prices on items including food, snacks, health and beauty products, cleaning supplies, basic clothing, home furnishings, seasonal items, paper products, and much more from the most reliable American brands and products, as well as high-quality private products.

(Dollar General’s First-ever store in the United States, Source: Google Images)

From serving their clients with value and ease of use and their staff with job opportunities in the communities, Dollar General has been committed to its mission of helping others since the company’s inception in 1939.

      Quick Stats About Dollar General

Products of Dollar General

Dollar General has been in the variety store company for more than a century. Their products are:

• Clothing
• Cleaning Supplies
• Home Decor
• Health & Beauty Aids
• Pet Supplies
• Toys
• Seasonal Items & Grocery

Competitors of Dollar General 

Dollar General’s competitors include:

• Walmart
• Big Lots
• Walgreens
• Dollar Tree
• Murphy
• Kroger

Now that we know more about the company, let us begin with the crux of the matter.

SWOT Analysis of Dollar General

The SWOT analysis of Dollar General analyzes the brand’s strengths, weaknesses, opportunities, and threats. In the SWOT analysis of Dollar General, strengths and weaknesses are internal factors and opportunities and threats are external.

From the SWOT analysis of Dollar General, let us first begin by understanding the strengths of Dollar General.

Strengths of Dollar General

As one of the leading organizations in its industry, Dollar General has many capabilities that enable it to be successful in the market.

• Strоng Distributiоn Netwоrk: Оver the yeаrs Dоllаr Generаl hаs built а reliаble distributiоn netwоrk thаt саn reасh mоst роtentiаl mаrkets.
• Strоng Рrоduсt Роrtfоliо: Оver the yeаrs Dоllаr Generаl hаs invested in building а  strоng рrоduсt роrtfоliо. The SWОT аnаlysis оf the Dоllаr Generаl simрly emрhаsizes this fасt that рrоduсt роrtfоliо саn be very useful if аn оrgаnizаtiоn wаnts tо exраnd intо new рrоduсt саtegоries.
• Gооd Returns оn Сарitаl Exрenditure: The Dоllаr Generаl is mоre effiсient соmраred tо the imрlementаtiоn оf new рrоjeсts аnd mаkes а gооd return оn сарitаl exрenditure by building new revenue streаms.
• Reliаble Suррliers: It hаs а sоlid fоundаtiоn оf а reliаble rаw mаteriаl suррlier thаt enаbles the соmраny tо оverсоme аny bаrriers tо рrосurement.

Weakness of Dollar General

Weaknesses are the areas where Dollar General can improve and build on its competitive advantage and strategic position.

• The Franchise Related Problem: Dollar General is facing problems due to the infidelity of its franchise staff. With so many franchises, it finally becomes difficult to control each employee.
• Operational Problems: As franchisees are found in every corner of the city, it becomes a major challenge for Dollar General to manage its operations.
• Need for High Technology: The company’s views do not reflect the technology it currently uses. Therefore, they need to invest more in their new investments to stand out in the competitive market.

Opportunities for Dollar General

• New Environmental Policies: New environmental policies can produce dreadful opportunities for Dollar General. With smooth environmental policies, they can gain new ones.
• Low-Calorie Food: If Dollar General add low-calorie food options to their health & food category, it will increase their customers. Because people in the United States are searching for low-calorie diets due to the increasing issue of obesity in the U.S. 
• Low Inflation: Due to lower inflation rates in some countries. Dollar General should start tapping the international market especially emerging economies.
• Demographic Changes: Increasing population in the U.S. can be advantageous for Dollar General to launch some new stores in the area. 

Threats to Dollar General

• Controlled Pressures: Every year the government implements new laws and regulations. Dollar General has faced regulatory pressure to provide its employees with income. There are 13800 shops, and their license is renewed annually following the laws and guidelines of the government officials who make this application.
• High Costs: Dollar General available services include many expensive services. They have no limitations on either way to control their costs. Personnel costs and basic material costs are increasing day by day. However, they can come up with ways to reduce costs to prevent this threat.
• Lack of Long-Term Contract With Suppliers: Dollar General supplier offers raw products such as vegetables and meat. This can be a serious threat to the business that can affect its productivity.
• Health Awareness Trends: Nowadays, people prefer healthy and homemade foods over junk food. Health awareness among customers can directly impact on company’s sales.

This ends our detailed SWOT analysis of Dollar General. Let us conclude our learnings below.