99 Cent Only Business Strategy v. The Competition.

David Gold, founder and CEO says the 99 Cent strategy is to piss the shortest path possible between the customer and the sale (Rae-Dupree, 2004). This is cardinal in deep discount retail in pose to purchase close-out and other special-situation merchandise at prices substantially downstairs wholesale that transport at prices significantly below standard retail (Symplicity, 2005).

Over the past two years, the bon ton has suffered a $17.00/ grant loss on its stock (from $30 to $13.00) mainly delinquent to declining operating margins (Domash, 2004) caused by over-optimism in the Texas marketplace. Competitors were more deeply entrench than their research had shown, and reduced earnings forecasts combined with declining operating margins were the sell signal for many investors in the company. Also, the need to upgrade their IT groundwork to support expansion in its California base market was the second company downfall. The following is a summary of the company strategy:

1. Focus on brand name consumables.

2. openhanded selection of regularly available merchandise.

3. Attractive and well-maintained stores.

4. Strong supplier relationships.

5. Focus on larger stores and wider demographic of value-conscious customers.

6.



Welcoming and plastic Store Hours and Policies

The Role of IT Infrastructure in Operations and railway line Strategy

CEO DISCONNECT WITH TECHNOLOGY

99 Cents Only strategy is supported by variant technologies that must always fall into line with David Golds theorem that the company allow not spend money on engine room to attain information it will not utilize (Symplicity, 2005). Golds comments that he does not even have a computer in his great power seems to make him technologically reluctant. The psychology of the CEO is certain to permeate the thinking of those under his leadership. His attitude may have contributed to the companys polity of writing its own software and its reticence to upgrade technology sooner. The operations failure...

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