Dollar General vividly understands

Dollar General vividly understands

Dollar General vividly understands the economic challenges that affect its customers. It responds to this competition by recognizing that the significant income disparity in the United States leaves a large number of locations untouched by their competitors. The company focuses on selling small-ticket items to a specific group of customers with low income but on tight budgets. Dollar General makes good use of its shelving space, making it able to fit a variety of products within a small space store. This helps to reduce challenges in some company stores because it assists in keeping operational costs very low as very few workers are employed.

The US Food and Drug Administration pilot program might reduce the sales of the firm with time. The plan might allow larger stores to penetrate the areas with low income by removing the former barriers. These larger chains can challenge the sales of the firm because such chains sell at relatively lower prices.

Dollar General should be aware of the products that can be sold to substitute its current products. Replacing the product will resultantly enable the firm to keep product prices low for the customers to enhance its competitive advantage. Keeping product prices lower as compared to their competitors will give the company more customers, thereby increasing its sales. An increase in customers would make the company have a strong customer base, which would, in turn, improve the competitive advantage of Dollar General. Therefore, keeping low prices will make the company compete with its competitors like Walmart effectively. Moreover, the company should also increase payment for managers at its stores