STRATEGY ANALYSIS OF DAVID JONES – JUNE 2014
The purpose of this report is to identify and evaluate the strategy of DJs. Analysing the external
environment, looking at what resources and capabilities give the organisation its completive
position, assessing the organisations strengths and weakness and looking at DJs long term
sustainability plan to see what recommendations can be advised and considered in the coming years
as the organisation faces new challenges in the ever changing retail and financial sector.
The Business environment is ever changing for DJs. The Business focus is its department stores and
financial services. The business ...view middle of the document...
5% (McGrath, ABC, 2013).
Unemployment levels also are one of the most influential factors on the economy. Meanwhile,
consumer-buying power is affected by unemployment rates and household costs (Gopal, Power
Retail, 2013). All of these economic factors that are taking place in the market weigh very heavily on
DJs operating functions and ability to deliver competitive outcomes.
Climate change is fast becoming a major concern for all business operations around the world.
Companies like DJ’s have taken this into account to continue to operate smoothly. DJs have created
a friendly environment image with marketing environmental projects and campaigns taking special
focus on reducing their carbon emissions. This has changed their way of service and external
operations of sourcing stock.
With huge technological advancements constantly happening this has escalated DJs online web
presence and made their online services growth. This has expanded the reach that DJs has and
enabled it to grow its customer base by giving customers easy access to high-end brands. At the
same time, there are a large number of sales going to offshore retailers due to the price deflation in
Australia and the growth in overseas online retailers targeting the Australian market (Gopal, Power
Retail, 2013). The limitation of having a boost with online services is that customers and price
compare and buy the same products from other online retailers and overseas stores.
Social and lifestyle influences
Creating an ethical image and atmosphere has increased the value of many companies. In the retail
world the customer’s look not only at what the company is selling but also at the same time is what
their purchasing creating value. DJs have increased its focuses on being socially responsible in all its
business activities with the intention of protecting the health, wellbeing and lifestyle of the
communities in which it operates (DJs, Code Ethics and Conduct). DJs is trying to foster that within
all their employees so they have commitment the companies vision.
RESOUCES & CAPABILITES
Financial Recourses: DJ’s financial situation and ability to continue to grow a generate funds can
be seen as a result in their 2014 financial report stating that the company total sales for the half
year were $1,042.3 million which was up 3.8% from the year prior (David Jones, 2014)
Physical Resources: Assessing the physical resources this takes a close look at the locations of DJs
stores. It is a strong competitive advantage that DJs occupies prime real estate with all its store
locations. These locations are a huge cost to the business. DJs invest a large amount of funds
into acquiring these demographic locations. Because of this strategy this give DJs the capability
to effectively engage with their target market.
Technological Resources: DJs has invested highly in it technological...