Dollar General
Operating costs run 40% lower than traditional territorial defense.
American chain of variety stores. Primary example of satellite strategy in retail - rather than competing head-on with Walmart's defended territories, Dollar General clusters 3-5 small stores within Walmart's 15-mile radius to capture convenience seekers Walmart can't serve profitably.
Operating costs run 40% lower than traditional territorial defense. The strategy works because it exploits gaps in Walmart's large-format approach. However, the chapter notes satellite strategies face saturation limits: Dollar General at 18% rural grocery share is optimal, but pushing toward 40% would trigger existential competitive response from Walmart (which launched Neighborhood Markets as satellite defense).