Innovation and New Technologies Report 2022

Innovation and New
Technologies

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Porter’s Five Forces Model.........................................................................................................1
Threat of potential entrants......................................................................................................2
Bargaining Power of Suppliers................................................................................................2
Bargaining Power of Buyers....................................................................................................2
Threat of substitutes.................................................................................................................2
Degree of existing rivalry........................................................................................................3
Porter’s Value Chain Analysis.....................................................................................................3
Primary Activities....................................................................................................................3
Secondary Activities................................................................................................................4
SWOT Analysis of Myer Holdings Limited................................................................................5
Technology Cycle........................................................................................................................6
Era of Ferment.........................................................................................................................6
Era of Incremental Change......................................................................................................7
Synopsis.......................................................................................................................................7
Solution for re-emergence in market...........................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Innovation is the new idea which brings new and differentiated products and services to the
market. Technology is the supportive factor that elevates the available resources and brings out
outstanding stuff to market. New and emerging business innovations embraced by businesses
enable creative organisation-wide development. In this report, the various strategic frameworks
will be applied to the currently operating departmental store dealing in differentiated product
line. Myer holdings is the department store having nearly 60 store location with strong brand
image but struggling to survive. They sell a wide variety of fashions, clothing, perfume,
cosmetics, electrical goods and services. To deeply analyse its innovation strategies and strategic
moves the organization will be analyzed through various models. Also, a solution through
innovation and disruptive technologies will be presented.
MAIN BODY
The Australian market is highly innovative and the departmental stores are ready to innovate and
meet up the challenges. However, the business operations of Myer are struggling to find space in
market and make some inspiring results but their profits are dropping. To evaluate the situation
and possible grounds the organization is thoroughly investigated through specific strategic
frameworks below.
Porter’s Five Forces Model
Myer has been continually redefining its ways to trade in retail sector. The major competitive
advantages developed by the organization are focused in elements of the model.
Figure 1: Porter's five forces
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(Source: Training Industry, 2019)
Threat of potential entrants
The innovation by new entrants keeps putting pressers on the brand to lowering its prices and
along with innovating its existing products and services. Moreover, the organization has adopted
innovative methods to improve its product line so that new and existing customer base is
established (Thursby and Berbari, 2016). However, it is definitely less likely for new entrants to
enter the market by spending such huge money on research and development and the company is
updating its standards regularly. As well, it's not easy for new entrants to achieve economies of
scale, however, so it weakens these.
Bargaining Power of Suppliers
Most of the competitors of the organization including them buy raw material from numerous
suppliers. Suppliers may affect the profits of company by decreasing margins of company. But
Within this sector, the suppliers of the Myer do not compete with other goods. The
organization’s supply chain has also been carefully structured so that many vendors collaborate
with them to ensure that they have no monopoly power (Burns and Dewhurst, 2016). Since, they
are struggling to survive building good relations with multiple suppliers is necessary.
Bargaining Power of Buyers
Buyers are not constant and firm they demand a lot form the company. As a department store
they also need to develop and introduce new product line and innovations at the lowest possible
prices. So, to overcome the situation the company is always working to technically innovate and
improve its services to attract higher number to customers. By building large customers base
they could be reduce the bargaining power of buyers. Also, with the fast production of new
goods they can tackle the power of bargaining (Burns and Dewhurst, 2016). Buyers could also
try discounts and incentives on existing goods and if Myer continues to come up with new
products then the bargaining power may be reduced.
Threat of substitutes
It can be said that if another product is satisfying needs of buyers it reduces the profitability of
the brand. For example: Starbucks coffee and cafe coffee day are substitute to each other. To
maintain the customer base and gain their loyalty the company has always been service oriented
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