Dollar Tree SWOT Analysis, Competitors & USP

Published by MBA Skool Team, Last Updated: April 26, 2020

SWOT analysis of Dollar Tree analyses the brand by its strengths, weaknesses, opportunities & threats. In Dollar Tree SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like Dollar Tree to benchmark its business & performance as compared to the competitors. Dollar Tree is one of the leading brands in the lifestyle and retail sector.

The article below lists the Dollar Tree SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Dollar Tree SWOT Analysis:

SWOT Analysis of Dollar Tree

For Dollar Tree, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.

Dollar Tree Strengths

The strengths of Dollar Tree looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Dollar Tree :

1. Operates 4,400 stores throughout the U.S and in Canada
2. A Fortune 500 company
3. More than 55,000 employees
4. Dollar Tree stocks a variety of products including national, regional, and private-label brands

5. The company also operates a multi price-point variety chain under the name Deal$

6.Operates in Party Supplies, Food and Snacks, Health and Beauty Care Products, Seasonal, Housewares, Toys

7. The company began accepting manufacturer's coupons at all of its store locations in order to provide increased savings and value to its customers

Dollar Tree Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Dollar Tree SWOT Analysis:

1.Turnover is very low and Margins are very less
2. Despite strong presence in Americas, it lacks global penetration

3. Case of recalled products affected image


Dollar Tree Opportunities

The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Dollar Tree SWOT Analysis:

1. Tapping the international market specially emerging economies

2. Acquisition of smaller retail chains

3. More visibility through advertising and customer focused services

Dollar Tree Threats

The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Dollar Tree are as mentioned:

1.Increased threat of private labels
2.Slow year on year growth
3.High crude oil prices impacting raw material


Dollar Tree Competitors

There are several brands in the market which are competing for the same set of customers. Below are the top 3 competitors of Dollar Tree:

1.Walmart
2.Target
3. E-mart

Hence this concludes the Dollar Tree SWOT analysis.

Continue reading more about the brand/company.

About Dollar Tree

Dollar Tree Overview
Parent Company

Dollar Tree, Inc.

Category

Discount Stores

Sector

Lifestyle and Retail

Tagline/ Slogan

Everything’s $1

USP

Sells every item for $1.00 or less

Dollar Tree STP
Segmentation

People seeking afforadable items

Target Market

Middle class households

Positioning

An American chain of discount variety stores offering discounted prices


This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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