Strategic Analysis Of David Jones Essay

Question:

Discuss about the Strategic Analysis of David Jones.

Answer:

Findings Regarding Industry and Potential New Entrant and Recommendations for Market Entry

From the report findings have been gathered that threat of new entrants in the industry is less. This is for the reason that that the department store sector is facing decreases in overall revenue. This has resulted in increased fixed operational costs along with decreased market attractiveness. The report indicated that in the current years, advantages for offering products through several retail channels have taken place because of changing technologies, making it necessary for retailers to take advantages of such opportunities for addressing customer needs and offering effective customer experience. It was also found that globalisation has impacted David Jones in its pricing strategies. With the increasing expectations of the consumers to gain access to superior quality products at favourable prices, the new entrants in the department store industry must develop effective market entry strategies to establish its position in the sector. Considering the industry analysis, certain effective recommendations for successful market entry of new entrants in department stores industry is presented below:

  • New entrants can enter department stores industry through acquiring equity holdings in the targeted country’s supermarkets. Through this strategy the company can sustain the competitive retailers within the industry.
  • In case new entrants considers entering a new market and is greatly unaware of its business conducts, the company might consider following market entry strategy of strategic alliances and partnership with the existing well-established retail companies in the department stores industry. This can offer the company required exposure to market conditions present while market entry and can offer enough time to the new entrants along with necessary resources to develop suitable market entry strategy in the nation. Local expertise must ensure a mature market for the reason that the new player can attain the shares of the existing players as there is less scope for total growth of the market.
  • In entering the department stores industry, the new entrants are recommended to develop targeted tiers associated with its products. The major focus must be to generate a target market that will not just be quality but also will be value conscious. Along with re-developing product associated and enhanced positioning the major focus of the new entrants must be on developing a great target audiences associated directly with several offerings being offered to them.

Conclusion

The purpose of this report was to provide an extensive and strategic analysis of David Jones Limited department store’s marketing channels. The findings indicate that David Jones is influenced by several economic factors such as inflation, interest rates, levels of consumer spending and exchange rates as well as government regulatory policies. David Jones faces Horizontal and Intertype competition, whereby the competition comes from firms of the stores of the same type such as Myers. David Jones has been able to differentiate themselves from competitors by introducing exclusive brands from both national and international designers. Considering the situation of the company, it has been recommended that in case the new entrants must consider entering a new market through being greatly aware of its business conducts. These new entrants might also consider following market entry strategy of strategic alliances and partnership with the existing well-established retail companies in the market.

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