Pest Analysis For Dollar Tree Inc. Harvard Case Solution & Analysis



Dollar Tree is a chain of discount range storeswhichproposesits products at fixed prices of $1. The company’sDollar Tree divisioncomprisesof 6650 stores that operateunder the brand name ofThe Dollar Tree & Dollar Tree Canada. It has 11 centersfordistribution in the United States, 2 operating in Canada and 1 store support center located at Chesapeake, Virginia. The stores have range of 8-10 thousand sq ft. In the Dollar Tree storessituatedin the United States,all itemsare soldat $1 oreven less,and in the Dollar Tree Canada facilities, all items are sold for about $1.25 or less. The companyendeavors to meet the customer expectations regarding the qualityofitsproducts which the customers can obtain for 1 Dollar.Dollar Tree buysabout 60% of its merchandise locally while importsremaining 40% from external sources.

Company’s domestic procurementscomprisethe following; basic, seasonal, home, closeouts and promotionalinventory. Furthermore, the direct affiliations with the producer and manufacturers allow Dollar Tree tochoose froma variety of products withcustomized packaging thathelpin meeting the customers' requirements.(Tree, 2017).

Dollar Companymanages one-dollar stores which itnameas Dollar Bill and Dollar Tree. Similarly, the firm has its MPP (multi-price-point)sequence stores that are named as theFamily Dollar and Deals. The merchandises of the company are adiverse collection of items. The company isinvolved in sellingbeauty, health and nutrition products along with housewares and more. The firmendures to employ its strategy ofusing lower competitive prices and also continue to strive in the low-end merchandizingindustry.

Pest Analysis For Dollar Tree Inc. Harvard Case Solution & Analysis



The Dollar Tree Stores Incorporation is operating at $1 price in stores, whose othercore value is customer satisfaction as it is a customer oriented and value-driven company.It functions beneficially, empowering its allies to add value in company’s opportunities, accomplishments and rewards and deals with others. The Dollar Trees' mission will remainunswerving with meticulous and gainfulprogress(The Dollar Tree, 2008).



In order to comprehendwelfares and menaces effectively, much required isaperipheral analysis or study of how the external sources areorganized for the company. PEST analysis is developed to study thefactors or environment that every business has. Political, Economic, Social and Technological are the components of the PEST Analysis. For Dollar Tree, it is important to study its environment specifically asstrong competition exists in the marketplace(Ndofor, 2008).

For Dollar Tree, Inc. the PEST analysis is a tacticalinstrument to evaluate the organization’s macro environment. (University, 2016).



Political influences play a greatrolein defining factors that mayinfluencethe Dollar Tree, Inc.'s effectivenessin long term in some markets or countries. Dollar Tree, Inc. has been and isfunctioning withdiscounts or concession invariety stores in about 12 countries. Dollar Tree hastriumphedwithsuch dynamic and vibrant discounts in variety stores innumerous countries to expand the orderly risks from the political environment. Following factors may be analyzed by Dollar Tree, Inc. prior to entering or capitalizing in any market:


  • The legal concerns,contextor charter for contract in any business or country is one of the major enforcements any business may face. These political and legal concerns may vary from country to country and even industry to industry hence, a close study is required or it may create major hindrances in the business operations.
  • The laws regarding the assets and property primarily need to be taken under consideration. Dollar Tree should have verifiedprotective measures for its intellectual propertyto startup or capitalize its business anywhere.................

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