Dollar Tree is the nation’s largest single price point retail with over 3300 stores across the United States. It has faced several issues that have led to organizational and leadership problems.
1. What are the chief elements of the strategy that “Dollar Tree” is pursuing?
The chief elements important in this article are all related to the fact that the company was moving towards expanding the business and creating a competitive advantage. As the article says, the business grows so much that by 2009, there were over 33000 retail stores and 12 distribution centers. The chief elements are as follow:
- To enter new geographic markets.
- To gain sales and market share with lower costs.
- Adhering to policies and procedures and making changes when needed.

2. What are the elements of “Dollar Tree” ’s Business Model?
There are 2 elements in the Business Model of Dollar Tree, which are Customer Proposition Value and Profit Formula.
Customer Proposition value lays out how the company is going to satisfy customer needs at a price the customer will consider a good value. In the case of Dollar Tree’s company one dollar for all products they offer is both a good value for the price they pay, and satisfying.
Profit Formula describes how the company is going to determine a cost structure that will provide profits. Dollar Tree company, in order to keep up with competition, has to purchase very aggressively when products of extreme value come their way, even if it means overloading stores. The costs of purchasing all these products have a consequence on the wages the company pays to employees, because payroll expenses can be controlled by the company.

3. Is the strategy well matched to recent developments and conditions in this segment of the food retailing and “1$ Shops” industry?
The strategy does not match the developments and conditions on the segment,