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SWOT Analysis for Dollar Tree Inc by Managementparadise.com, You can use this SWOT Analysis for management project and reports. Dollar Tree, Inc is an American discount chain variety store selling every product for $1.00 or less.
Dollar Tree, Inc. is an American chain of discount variety stores selling every item for $1.00 or less. A Fortune 500 company, Dollar Tree is headquartered in Chesapeake, Virginia and operates 4,009 stores[1] throughout the 48 contiguous U.S. states. Its stores are supported by a nationwide logistics network of nine Distribution Centers. The Company operates one dollar stores under the names of Dollar Tree and Dollar Bills. The Company also operates a multiprice-point variety chain under the name Deal$ (http://www.deals-stores.com/).
Dollar Tree competes in the dollar store and low-end retail markets with the national chains Family Dollar, Big Lots and Dollar General together with regional chains such as 99 Cents Only Stores, Fred's and many independent dollar stores nationwide.
Each Dollar Tree stocks a wide variety of products including national, regional, and private-label brands. Some of the product departments found in a Dollar Tree store include health and beauty, food and snacks, party, seasonal décor, housewares, glassware, dinnerware, household cleaning supplies, candy, toys, gifts, gift bags and wrap, stationery, craft supplies, teaching supplies, books, and more. Many Dollar Tree stores also sell frozen foods and dairy items such as milk, eggs, pizza, ice cream, frozen dinners, and pre-made baked goods.
In 2009, Dollar Tree launched a redesigned website (http://www.dollartree.com/) with a new e-commerce platform. DollarTree.com sells Dollar Tree merchandise in larger quantities to individuals, small businesses, and organizations. Every single item on the website is still only $1 or less and the Company offers free shipping to Dollar Tree stores. The Company also advertises in-store events, specials, seasonal promotions, and featured products through the site and users can locate a retail store, research information about Dollar Tree, and view product recalls. Dollar Tree also recently added customer ratings and reviews to the site so customers can go online and read and write reviews about Dollar Tree products.
Strengths
* Strong reputation for service and quality
* Fundamental operational measures better than competition turns, growth, and operating expenses
* Location in growing population markets
* Weakened channel competition
* Motivated workforce - ESOP (employee stocked ownership program)
Weaknesses
* Pricing against alternate channel competition
* Difficulty in keeping culture intact across larger areas
* Dependence on a single format
Opportunities
* Expansion and growth geographically
* Frequent shopper data- finding programs that increase ring and frequency
* Format innovation
* Private label - higher margins, helps build its brand
Threats
* Wal-Mart expansion
* Maintaining gross margin competitiveness with high inventories
* Growing too fast might challenge ability to maintain their uniqueness
* Managing increasing regional variations
Dollar Tree, Inc. is an American chain of discount variety stores selling every item for $1.00 or less. A Fortune 500 company, Dollar Tree is headquartered in Chesapeake, Virginia and operates 4,009 stores[1] throughout the 48 contiguous U.S. states. Its stores are supported by a nationwide logistics network of nine Distribution Centers. The Company operates one dollar stores under the names of Dollar Tree and Dollar Bills. The Company also operates a multiprice-point variety chain under the name Deal$ (http://www.deals-stores.com/).
Dollar Tree competes in the dollar store and low-end retail markets with the national chains Family Dollar, Big Lots and Dollar General together with regional chains such as 99 Cents Only Stores, Fred's and many independent dollar stores nationwide.
Each Dollar Tree stocks a wide variety of products including national, regional, and private-label brands. Some of the product departments found in a Dollar Tree store include health and beauty, food and snacks, party, seasonal décor, housewares, glassware, dinnerware, household cleaning supplies, candy, toys, gifts, gift bags and wrap, stationery, craft supplies, teaching supplies, books, and more. Many Dollar Tree stores also sell frozen foods and dairy items such as milk, eggs, pizza, ice cream, frozen dinners, and pre-made baked goods.
In 2009, Dollar Tree launched a redesigned website (http://www.dollartree.com/) with a new e-commerce platform. DollarTree.com sells Dollar Tree merchandise in larger quantities to individuals, small businesses, and organizations. Every single item on the website is still only $1 or less and the Company offers free shipping to Dollar Tree stores. The Company also advertises in-store events, specials, seasonal promotions, and featured products through the site and users can locate a retail store, research information about Dollar Tree, and view product recalls. Dollar Tree also recently added customer ratings and reviews to the site so customers can go online and read and write reviews about Dollar Tree products.
Strengths
* Strong reputation for service and quality
* Fundamental operational measures better than competition turns, growth, and operating expenses
* Location in growing population markets
* Weakened channel competition
* Motivated workforce - ESOP (employee stocked ownership program)
Weaknesses
* Pricing against alternate channel competition
* Difficulty in keeping culture intact across larger areas
* Dependence on a single format
Opportunities
* Expansion and growth geographically
* Frequent shopper data- finding programs that increase ring and frequency
* Format innovation
* Private label - higher margins, helps build its brand
Threats
* Wal-Mart expansion
* Maintaining gross margin competitiveness with high inventories
* Growing too fast might challenge ability to maintain their uniqueness
* Managing increasing regional variations
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