The company continues to plow its profits back into expanding the firm by opening new stores. Family Dollar has chosen not to expand by acquisition.
Family Dollars primary business partners are its vendors. Merchandise suppliers work with Family Dollar to ensure a good selection of core products are on the stores shelves. The company also partners with construction firms to build its stores as it continues to expand its network. The company also partners with transportation companies to help with the logistics component of the business. Each of these back-end partners helps the company to achieve lower prices for its goods, while ensuring that Family Dollar can offer a range of goods that will appeal to the average buyer.
In general, these strategic alliances appear to be successful. Family Dollar is consistently profitable, which indicates that the objectives of these alliances are being met. Customers are attracted by the product mix, and the company has been able to offer goods at low prices, by minimizing construction and transportation costs.
That Family Dollar does not have strong marketing alliances is deliberate, because the company is not pursuing name brand associations. This approach supports its image as a low cost provider, and does not prevent the company from offering a strong product mix. As such, even the strategy of not pursuing marketing alliances appears to work in Family Dollars favor.
Family Dollar.com website, various pages. (2010) Retrieved November 16, 2010 from http://corporate.familydollar.com/Pages/history.aspx
MSN Moneycentral. (2010). Family Dollar. MSN Moneycentral. Retrieved November 16, 2010 from http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=FDO
Lipton, J. (2009). Cheap Americans are here to stay. Minyanville. Retrieved November 16, 2010 from http://www.minyanville.com/businessmarkets/articles/dollar-stores-tree-recession-saving-josh/8/27/2009/id/24259
Reeves, S. (2009). The dollar stores that deserver your bucks. Minyanville. Retrieved November 16, 2010 from http://www.minyanville.com/businessmarkets/articles/dollar-discounters-retail-walmart-shopping-holiday/11/16/2009/id/25467?page=full
Sharon, J. (2010). Family Dollar is in the money. Minyanville. Retrieved November 16, 2010 from http://www.minyanville.com/businessmarkets/articles/stock-performance-investment-strategies-family-dollar/9/29/2010/id/30311.