Porter five forces model assists in understanding the company through examination of the industry. This model has four crucial areas that are analyzed in the industry. They include: Competitors: within the industry, there exist several distinct types of retail stores that operate in the discount retail industry and for wider comparison; the industry is broken to other fine segments (Sorescu, Alina, et al. S. 8-9). Dollar General operates in a market segment known as dollar store category. Due to this, rivals such as Wal-Mart operate in the same market with Dollar General but in a different peer group. However, the rivals, in this case, draw target market of same clients Customers: retailing merchandising stores tends to attract a distinct …show more content…
Dollar General endeavor towards meeting demands and needs of lower and middle-income clients. The firm may be categorized to have focused on cost leadership strategic aspect in line with Porter's Generic Strategies Model (Sorescu, Alina, et al. S. 11). Commodities: stores that operate in the discount retailing industry provide a wider variety of products at lower prices. Discount stores are capable of offering brand names but emphasizes on brand uniqueness to the store for less prices. There have been crucial trends toward perishable products which have been apparent in the market (Sorescu, Alina, et al. S. 2-4). Dollar General was able to add refrigerated coolers in all stores which are filled with most frequent purchased products which incorporate dairy products, milk, eggs, frozen foods and luncheon meats. Dollar General has been in the struggle to offer values to the target consumer groups through private labeled brands. The firm set claims that, “it offers name brand quality at a very special price” (Merrilees, Brent and Dale