a case study-dollar general

PRESENTATION ON

Heavy on organization, Light on system

Company Overview

Revenue

2004 20090

2

4

6

8

10

12

Sales Growth

Year

Reven

ue (

in b

l )

Competitors

Small•Family Dollar •Fred’s Tree•Dollar Tree

Big•Wal-Mart•K-Mart•CVS•Rite-Aid

Target Segment Lower

Middle

Fixed Incomes

Neighborhood Stores

Success Mantra Increasing Number of Stores

Low operating cost 8 Day strategy

Land on lease

1999 2004 20090

100020003000400050006000700080009000

No of stores

No of stores

Years

Expansion of company

8 Day strategy

DAY 1

• Store Set up• Use of Pogs

DAY 2

• IBM Terminal Receive• Stock room• Manager Office

DAY 3

• Arrival of approximately50 % of inventory

Contd.

DAY 4 and 5

• Installation of satellite dish • Installation of modem inside IBM terminals

DAY 6

• Testing of Triversity software• Troubleshooting satellite network• Training to store assistants and workers

DAY 7 and 8

• Additional product stocking• Arrival of perishable goods• Transmission of pricing & product code to IBM terminal

Company’s strategy regarding space

56%

41%

3%

Information about Lease

Shopping Cen-tersFreestanding buildingsUrban struc-tures

Limited Use of MIS

Insufficient use of networks Much reliance on private voice mail

system Excess use of paper No automated system for inventory

management No system for counting of incoming

stock

Snapshot of portal

Suggestions

Use of Inventory Management software

Quick adaption to changing technology

Questions and solutions

Describe Dollar General ‘s strategy for success ?

Place Product line Customer Segmentation8 days strategy Use of information system

Questions and solutions

Describe role of management, organization & technology in D.G.’s business strategy

Role of Management

Design of planogram / pogs To introduce new technology for

efficient working of organisation Cost control

Increase in expansion rate of retail business

To assign right person for store setup

Role of Organisation

Role of Technology

Use of Catalyst warehouse management software

Loss prevention software Video monitors Use of Triversity Software Bar Code Scanners

Questions and solutions

Does Dollar General Miss out on any business opportunity as a result of its approach to information technology?Do you think Dollar General can continue growing at its current rate?

Thank You