Dollar General is a store in the United States, that has the basic needs of low-income families. Dollar General helps where low-income families struggle. Tennessee is the home state of Dollar General, but a business always has a rivalry. Dollar General competitors are Priceless, and Dirt Cheap. Dollar General is in a perfect competition market since all of its competitors sell identical items. Dollar General is making a lot of revenue compared to the other rival competitors such as Priceless, and Dirt Cheap.Dollar General is also doing well, and there is a reason behind it.
Dollar General is doing well in business, while other businesses are failing to do well. There is a reason behind it because Dollar General is well known in Tennessee, which makes people from Tennessee go to Dollar General. Dollar General is a bandwagon effect because it is well known in Tennessee, so everyone goes there. Dollar General also has a wide variety of items which, draws customers attention.Low-end families go to Dollar General because it is cheap and has all the basic needs to keep a human being living healthy. Dollar General sells everything from packaged food, toys, cleaning products, but for a cheaper price, so the unfortunate families can afford.(The Economist, 2018). Most of Dollar General’s customers are people who live in rough areas of the town, so most of the Dollar General’s are located nearby the rough area homes.
The main reason why people go to Dollar General is, that it is cheap to shop there. “Dollar General promises low prices and quick, convenient shopping, but so do other dollar stores, such as Dollar Tree, Family Dollar or the near-bankrupt 99Cents Only”(The Economist, 2018). Another reason why people tend to shop at Dollar General is, that of the location. All Dollar General’s are spread throughout the city, so anyone can shop there. All Dollar Generals are located next to highways, post offices, churches and schools, so all customers can shop at Dollar General no matter where they live(The Economist, 2018). Dollar General is also opening 900 more stores this year, so revenue will rise even more than before.
Dollar General is opening 900 more stores spread out through Tennessee.The reason why there are trying to open as much as stores as they can, so they will be each part of town will have one. Means more people will likely to visit a Dollar General store, than any other dollar store. The owner of Dollar General Cal Turner wants to get rid of all the other dollar stores in the United States, so he can run a monopoly business. In the long run, Cal Turner will lose a lot of money, because there are so many other competitors who sell the same identical items, and there are also bigger businesses like Walmart. Walmart for an example also sell the basic needs for a cheap price, and they have way more variety of items.
In conclusion, Dollar General are doing really well, but in the long run, they will go downhill. There are bigger companies like Walmart, target, and many more stores, that also sell the basic needs to live healthy for cheap. These companies have the money, and power to wipe out all Dollar Generals. To keep Dollar General’s stay a successful business, they need to focus on their customers that are in desperate help. By locating more stores in rural places part of Tennessee, and making more products that kids will also enjoy. Making products, that kids will enjoy will force their parents to shop at Dollar General more often.