Strategic Management

Hua Zhang 13132268 Case study Chapter 8 – The widening divide between Myer’s and David Jones’s niche markets Q1 What competitive advantage(s) do you think Myer and David Jones each have? Do you think, given your answer, that each chain’s strategy is appropriate? I think the David Jones’s strategy is probably the focus strategy which targeting on the upmarket, and case on Myer is just similar but it is aiming on the market of house-brand and mass market, which means that Myer is trying to differentiate the market from the one that was same as David Jones’s.

The advantage of David Jones’s strategy is that the focusing on a specific industry segment and there is no need to serve the broad market, so it gains a differentiation advantage. Myer widely changed its market aim to more areas in mass market, it could benefit itself by attracting more customers, saving expenses for competing with David Jones, in addition, it provides products in higher qualities than the its new competitors – Target and Kmart, etc.

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. In my opinion, both of their strategies are appropriate, and could benefit themselves.

Q2 If you were asked to explain Myer’s strategy, how would you describe it? I would say it is probably stuck in the middle because it seems that Myer wish to lower the cost of goods, but obviously it couldn’t be the lowest, and it increased the variety of goods by extend the market to the mass market, this gives itself more common product but less differences to the others. Q3 If you were asked to explain David Jones’s strategy, how would you describe it?

As I have mentioned in the question 1, I think David Jones is using the focusing strategy which will gain a differentiation advantage, and this can lead to its own success, this strategy brings many advantages such as leasing of presences in Westfield’s shopping centre, and it can also focus on the services in high level products and ignore the other services and products, so it makes better services, but the disadvantage is also the less variety of product, because of too much focus on the upmarket.

Q4 If you were the manager of or advisor to Myer, how could you use a SWOT analysis in deciding your strategy for the chain as a whole? Strengths: Any activities the organization does well, or any unique resources that it has. Weaknesses: Activities the organization does not do well, or resources it needs but does not possess. SWOT analysis: an analysis of the organization’s strengths, weakness, opportunities and threats.

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