Case Analysis and Applications of Strategic Model of David Jones

REPORT- CASE ANALYSIS
AND APPLICATIONS OF
STRATEGIC MODEL OF
DAVID JONES

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Summary of the case....................................................................................................................3
Identification of issue...................................................................................................................4
Concept........................................................................................................................................4
Application of business strategy..................................................................................................5
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

EXECUTIVE SUMMARY
This report highlights the case study of David Jones (DJs) along with the major issues that it
faced. This report also discuss the theoretical concept along with the application of business
strategy with the implication of various strategic tools.
INTRODUCTION
Existence of competition in the market along with changing of market trends are very volatile in
the business economy. It is very essential for every business or company to analyse such changes
along with their implementation in order to retain in the competitive world. However, neglecting
such market requirement may bring negative impact over the companies in terms of loosing
customers or non achievement of their pre-decided goal. Thus, it is very essential for every
company to make the business strategies in order to cope with such changes and win the leading
positing in the competitory market.
MAIN BODY
Summary of the case
David Jones (DJs) is one of the leading retailing company of Australia. It deals with the
business of selling branded clothes with a wide coverage over customers. Its major competitor is
Myers. In 2014 it was overtakes by Woolworths of South Africa. The differentiation strategy of
DJs was fine-tuned. But the market regarding the speciality departmental stores is raising at the
rate of 7 per cent in comparison of 2 per cent of standard departmental stores. However, Iain
Nairn the CEO at the time of overtaking said that the DJs had lost its way. It has to move
towards changes. Now the company is more focusing towards acquiring more customers from
Asian countries along with laying focus on digital and credit card payment. The company also
start paying high incentives to its employees. With an investment of A$400 millions the stores
are also upgraded. The number of stores are also opened at the country road with a planning of
opening 8 more stores. With its appealing new stores it is attracting and meeting the needs of its
luxurious customers.
In 2015 Iain Nairn was replaced by John Dixon who is associated with the old and
famous brand Marks and Spencers. John Dixon also brings many more changes in DJs. It was
also found that the changes brought by Iain Nairn is due to the tension with the Ian Moir, head of

Wooleorths. The changes are bought to indulge various private labels in the stores with the
following of brand strategies regarding tradition. As per Dixon and views of Ian Moir, the food
business of DJs was little tired. They want that DJs should be converted into food halls where
shoppers can enjoy delicious food along with shopping. They want to convert DJs as the
favourite destination of shoppers. Dixon also said that since DJs has made its position in the
heart of Australia. It will remain the same if he will lead DJs in such competitive market of
departmental stores.
Identification of issue
The major issue associated with DJs is its traditional approach of doing its business. DJs
was slow adaptor to change. It was carrying out its business by following the traditional plans
and policies without looking at the changing business requirement. DJs usually never consider
the requirement and needs of its employees. Non adoption of the latest changes and non
appealing look of the store was also characterized as a major issue. DJs also never thought about
the policy of expansion of its business.
It is also being seen that DJs has not made market research and as a result not able to
analyse the market opportunities. Lack of technological advancement would also being
considered as a major issue for DJs. Determining the value of human resource along with
meeting the needs of customers through providing products of their demand are also considered
as essential issue associated with DJs.
Concept
Business environment or the environment in which a company operate its operations is
very dynamic. Business environment continuously changes along with raising the need of change
for the companies. It is very essential for companies to analyse the business environment and its
demand to make the strategies regarding future course of action.
Since, many changes occurs in the environment regarding technology, changing trends, changing
taste and preferences of consumers. Thus, it is very essential for every company to analyse the
internal as well as external environment before making its strategic plan. Since internal
environment is related with the internal management of the company thus, it should be easy to
cope with this environment in comparison of external environment which basically dealt with