99 Cent Only Stores, Outline Example

Environmental Analysis

Company’s customers

The company has various customers majorly those using food and beverages, health and beauty aids, cleaning supplies it therefore serve various clients.

Company’s competitors

The company being the most reliable and customer friendly face competition from its competitors. The competitors comprise of Big lots, Inc, Wal-mart stores, Dollar tress, Inc. this competitors have similar business model as 99 cent only thus the company faces direct competition majorly from those selling many of their products at around $1.

Technology

The company has experienced technological forces this is brought by the company’s founder (chairman) he has resisted computer technology hence making things difficult. The greatest challenge is the act to launch a new distribution center. Time constrains are seen to be strict. To curb this there is need for a warehouse management system that will be totally customizable. Another technological force is the difficulty in implementation of new software and training of employees this is as a result of the way distribution center functions. It works in 3 shifts hence it is difficult to give training to them separately.

Economic environment

99 cent only stores company is a well known discount retailer of named brand consumable general merchandise. It delivers great value to its customers. It provides primary shopping destination for price-sensitive consumers .The stores are attracted to merchandise, clean and full service.

The 99 cent only store does not have a go green policy since it is a resale store where they purchase overstocked items at a low rate and resale them. The company has adapted the concept of what people require within their homes. The people mentioned that they need discount stores this reveals that consumers are past the go green concept and trying hard to find the best deals that their money can purchase. This gives the 99 cent only store a plus.

• Internal analysis
• Competitive advantages

The company is struggling to maintain its originality by ensuring they open up with 10 customers purchasing the product at nine cents every day. The company gains its merits by being limited to united states it owns the revenue of almost two and half billion dollars. Its mission statement is humorous and always interpreted correctly for its services even on holidays such as Christmas (Hesselbei, 2009)

Weaknesses

The company has some weaknesses that need to be addressed for instance; the cutbacks are normally interpreted as dramatic statements as the pronouncement of the stores closures are reversed when some profits are generated. It is also realized that the execution inside the store is poor. The products offered are known to be limited hence cut out most of the customers this is because only low price items can be purchased.

Opportunities

To curb the drawbacks new locations are being set for the stores keeping as per the customers and profitability. There should be global expansion of the store chains more so in developing countries.

The company has enrolled in club 99, a program that is of significant to dealers who are interested in opening up their own businesses (small scale) this makes the company known and gain more customers. They offer free shipment to those who are new.

Reference

Dollar Tree. (2012, August 4). Dollar tree. Retrieved from http://www.dollartree.com/custserv/custserv.jsp?pageName=Mission&parentName=About

Finance, D. (2012, August 4). 99 cents only stores. Retrieved from http://www.dailyfinance.com/quote/nyse/99-cents-only-stores/ndn/earnings-growth-rates

Hesselbei, F., & Goldsmith, M. (2009). The organization of the future. (p. 32). San Francisco: Jossey-Bass.