External analysis
Opportunities
1. Entering into pharmaceutical business
2. Leveraging on brand name David Jones to enter into other product line extension
3. financial leverage
4. Online market
5. International expansion
6. innovation
Threats
1.Increasing domestic competition as new brands coming constantly
2. High brand switching by customers means limited brand loyalty
3. intense competition
4. substitute products: David Jones limited
Increased prominence of private label and house brands, new loyalty and credit card programs, changes to staffing and a renewed focus on Asian customers are all part of David Jones’ new strategy under South African ownership.
South African retailer Woolworths purchased the iconic Australian department store last August for $2.1 billion, and paid another $213 million for the Country Road Group to form one of the largest retailers in the Southern Hemisphere.
David Jones will introduce a new staffing structure. The sales managers’ role will shift from 70/30 admin/sell to 70/30 sell/admin allowing more time to be spent focusing on the customer and less time on administrative tasks.
A new integrated Loyalty and Financial Service program will also be introduced. Data and insights from this program will be leveraged to provide personalised, relevant and targeted communication.
To execute a “right product, right place, right price” strategy, insights from data analyst firm Quantium will be used to optimise brand assortment and understand market size, growth and share, forming the basis of the revised brand assortment.
A renewed focus on targeting Asian customers was also identified as a David Jones initiative