Core Diagram

CORE DIAGRAM:

To create a core diagram for the organisation, one must evaluate its elements comprising of its business model, operations and place in the market especially for Dollar Tree.

Core Diagram of Dollar Tree:

1. Mission & Vision

Mission: At Dollar Tree, the company’s goal is to entertain its customers by stocking the shelves with a broad range of satisfactory quality items for a set price of $1.25. They are mainly aimed at providing their customers with better and more convenient everyday lives.

Vision: It aims at achieving its vision of becoming the largest discount retailer of hard goods in North America while catering for its customer’s needs and improving on its social responsibility.

2. Business Model

Product Range:

Everyday Essentials: Home goods, cleaning materials, baby/ sanitary products, and groceries.

Seasonal Items: Holiday ornaments, party goods and products, and relocation items during different seasons.

Variety Items: House wares such as hand crafts, writing materials, baby toys and trinkets, small electrical items.

Pricing Strategy: Every product is priced at 1.25$, while this strategy makes the offer quite predictable for consumers.

3. Operations

Store Footprint:

Over 15 fifteen thousand stores in North America exclusively with further expansion in the continent in progress.

The store formats range from small neighborhood stores to large stores having a wider range of the product.

Supply Chain Management:

The suppliers may be addressed keenly to ensure the best prices are offered.

Use of central distribution hubs to bring efficiency in their procurement and distribution chain.

Distribution Centers:

Is placed tactically across geographical areas so that inventory replenishment is done timeously.

4. Marketing Strategies

Promotional Activities:

These include coupons and other on the shelf promotions like promotional offers,ंस off season sales, sale of certain stock, and seasonal and flash sales.

Promotional selling during festive occasions with a view of targeting as many consumers as possible upon festive periods.

Digital Marketing:

Use of the social networks and Web advertisements to increase traffic to the actual stores.

Community Engagement:

Partnerships with local events and rides and charities to improve the company’s image within the community.

5. Financial Structure

Revenue Generation:

Mainly through increasing the turnover of impulse products for which traffic to stores is the primary indicator.

Holiday seasons present high traffic generating huge amounts of revenues.

Cost Management:

Efficiency in supply chain activities and adopting centralized expanded purchase to enhance low working expenses.

Absolute control over unnecessary overhead expenses, while at the same time embracing the highest level of customer acquisition.

6. Competitive Advantage

Unique Value Proposition:

The rationality of $1.25 price point provides simplicity and removes ambiguity in attracting consumers interested in low cost.

Brand Loyalty:

Long term customer relationship based on the stable price policy, quality CAWD products, and social responsibility.

Market Positioning:

Placed at Dollar Store sub segment marking in the market as a competitor to the other discount store segments.

7. Challenges and Opportunities

Challenges:

Uncertainties of supply chain costs and the potential to be in the wrong place at the wrong time regarding economic forces that might influence pricing culture.

Threats on the bargain hunters and the threats posed by other discount retail stores and online retailers.

Opportunities:

Market expansion as a form of diversification where a firm moves into new and unfamiliar markets.

Bolstering the existing lines by integrating more private brands’ as well as exclusive products.