Miles And Snow's Strategy Case Study

Miles and Snow’s strategy typology consist of four strategic categories: prospectors, defenders, analyzers, and reactors (Parnell, 2014). I would categorize Dollar Tree as a defender strategy. Defenders operate in a single market. Dollar Tree operates in the discount store industry (Retail - Discount Stores, 2016). Defenders look for stability and control (Parnell, 2014). Dollar Tree opened fully automated distribution centers in an effort to improve its operating efficiency and support expansion (Dollar Tree, 2016). “Dollar Tree has 10 distribution centers and receives approximately 90% of its inventory from the distribution centers” (Dollar Tree, 2016). Lastly, defenders avoid making the initial move within industries. Dollar Tree acquired Family Dollar Store in an $8.5 billion cash-and-stock deal. This acquisition was shocking because Dollar Tree was not assumed a major contender (Robbins, 2014). “Being the first mover can be costly and risky, and savvy rivals can often leapfrog first movers with better designs and more efficient production processes (Parnell, 2014).

The discount store industry consist
of firms that offer differentiated products at a low prices. The industry includes Big Lots, Dollar General, Fred’s and Walmart (Retail - Discount Stores, 2016) Big Lots stores market brand-name products such as food, furniture, housewares, seasonal items and toys. Many of Big Lots products come from liquidations (DOLLAR TREE, INC. Competition, 2015).Dollar General is the fast-growing retailer with over 12,000 discount stores in 40 US states. The stores are typically 7,400 sq. ft. and located in small towns (DOLLAR TREE, INC. Competition, 2015). Fred's has 650 discount stores in some 15 states. The stores are primarily in small towns and the customers are cost conscious consumers. Fred’s stores offer pharmaceuticals, household goods, clothing, food, tobacco items, and cleaning supplies (DOLLAR TREE, INC. Competition, 2015)

References:

Dollar Tree, Inc.
(2016). Dollar Tree, Inc. MarketLine Company Profile, 1-31.

DOLLAR TREE, INC. Competition. (2015). Retrieved from HOOVERS: http://www.hoovers.com/company-information/cs/competition.Dollar_Tree_Inc.6d612139eab8a39e.html

Parnell, J. A. (2014). Strategic management: Theory and practice (4th ed.).

(2016). Retail - Discount Stores. http://markets.on.nytimes.com/research/markets/usmarkets/industry.asp?industry=53412: The New York Times. Retrieved from The New York Times: http://markets.on.nytimes.com/research/markets/usmarkets/industry.asp?industry=53412

Robbins, R. (2014). In a surprising move, Dollar Tree will buy Family Dollar for $8.5 billion. Retrieved from
https://www.washingtonpost.com/business/economy/in-a-surprising-move-dollar-tree-will-buy-family-dollar-for-85-billion/2014/07/28/73534fda-169f-11e4-9e3b-7f2f110c6265_story.html