SWOT Analysis of Business Ecosystem

This assignment focuses on the application of the SWOT analysis framework within the context of business ecosystems. Students are expected to analyze various case studies, such as 'Make in India' rolled out for the textile & garment industry and David Jones online store, utilizing the SWOT framework. The assignment draws upon academic literature and research papers covering topics like international marketing, retail strategies, customer segmentation, and competitive analysis.

Running Head: ASSESSMENT ITEM 2
David Jones Business Plan
Name
University Affiliation
Date

ASSESSMENT ITEM 2
Table of Contents
ASSESSMENT ITEM 2..................................................................................................................3
Introduction....................................................................................................................................3
Macro and Microenvironment analysis of Indian market by David Jones......................................4
Political.......................................................................................................................................4
Economical.................................................................................................................................5
Social.........................................................................................................................................5
Technological.............................................................................................................................5
Legal..........................................................................................................................................5
Environmental............................................................................................................................6
Market Analysis of David Jones in India........................................................................................6
Market segmentation.................................................................................................................6
Target customers.......................................................................................................................7
Product positioning.....................................................................................................................7
Competitive Analysis of Davis Jones in India................................................................................7
Organizational analysis of David Jones in India............................................................................9
ASSESSMENT ITEM 3: INTERNATIONAL MARKETING PLAN..................................................12
Executive Summary.....................................................................................................................12
Mission Statement.......................................................................................................................12
Objectives....................................................................................................................................12
Recommended Market Strategy..................................................................................................13
Market Entry Mode...................................................................................................................13
Segmentation, Targeting, and Positioning Strategies..............................................................13
Marketing Mix Strategy............................................................................................................14
Economic Evaluation...................................................................................................................16
Step 1.......................................................................................................................................16
Step 2.......................................................................................................................................16
Step 3.......................................................................................................................................16
Step 4.......................................................................................................................................17
Implementation and Control........................................................................................................17
Action Plan Application............................................................................................................17
Monitoring of Action Plan, Contingency Plans.........................................................................17

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Conclusion...................................................................................................................................18
Reference List..............................................................................................................................19
ASSESSMENT ITEM 2
Introduction
David Jones a leading retail company in Australia has decided to enter a new international
market. The company has planned to enter the Indian retail market after analyzing the
extensiveness and diversification of a large number of populations in the country. In this
assignment, a discussion on the market choice of the company, issues that could be faced by the
company as an emerging organisation, competitive analysis in the international market and
subsequent organizational analysis is been provided.
Figure 1: Logo of David Jones
(Source: Shop.davidjones.com.au, 2017)
Macro and Microenvironment analysis of Indian market by David Jones
In order to analyse the market value of business of David Jones in India, PESTLE analysis is
been conducted.

ASSESSMENT ITEM 2
Figure 2: PESTLE analysis
(Source: Floh et al. 2014)
Political
India prolongs a good relationship with other countries in respect of political grounds. Grant
(2016) has shed light on the strategic dialogue been formed between Australia and India in 2015
that provided an opportunity for enhancement of business between the two countries. However,
the company can face a hindrance in their business activities due to the campaigns recently
promoted by Indian Government. PM has launched a ‘Make in India’ concept in retail sectors,
where, textile and garment manufacturer from rural areas of India are being exposed to the local
as well as international market by the Government initiatives (ETRetail.com, 2017). David and
Jones, being an international company may counter such political scenario and not get sufficient
exposure on entering Indian market as Government is focusing of retailers within the country.
Economical
Australia being a developed country has a much less inflation and unemployment rate. On the
other hand, India is facing huge economic issues in the past few years an inflation and
unemployment are much prevalent in this country (Dess, 2013). A significant impact on the
PESTLE
Political
Economical
Social
Technological
Legal
Environmental

ASSESSMENT ITEM 2
export and import of goods is made by RBI affecting tax rates. This could have affected the
growth of a new business in the Indian retail market.
Social
Social aspect in India and Australia are completely different. India is a country-inhabiting people
of different cultures, religions, lifestyle and family structure. David Jones will have a great scope
in attracting customers in India regarding social aspect (Grant, 2016). However, they might face
competition from domestic market, being more associated with Indian culture. This would prove
to be a negative factor since this organisation would be launching Western dresses which other
international organizations’ like Burberry, Zara have already captured.
Technological
Technology is facing an exponential growth in India in the last few years, enhancing import
export activities, foreign direct investment and in licensing agreement. In addition to this, online
medium is greatly influencing urban society of India. Thus, David Jones will be entering a
country that is being technological rising and the organizing will be able to conduct their
promotional activities via online medium on entering this new market (Zhang, Guo & Goes,
2013).
Legal
Tax system in India can have a significant impact on entry of David Jones in this market.
Frequent increase in decrease of tax, emergence of new tax system like GST, can affect the
business activities of a newly emerged organisation in Indian market (De Knop & Meunier,
2015). Prevalent legislations are also needed to be followed by the company in a methodical
way, which may be time consuming. This may cause a disruption in convenient operations of
their business.
Environmental
Tropical summer climate is prevalent in India and people mostly prefer cotton clothes. David
Jones, coming from a temperate climate country, needs to modify their clothes to make their
target customers feel comfortable on availing their service.

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Market Analysis of David Jones in India
David Jones on entering their new market in India needs to segment their market, target their
customers and position their product offering.
Figure 3: STP model
(Source: Zhang, Guo & Goes, 2013)
Market segmentation
On the basis of four factors, David Jones has segmented their market in India that is being
discussed below:
● Geographical situation of India covers an extensive boundary, being the 7th largest
country in world in terms of population (Zalengera et al. 2014). Company has scope of
segmenting their customers based on 28 states of the country having various cultures.
● Demographic situation of India portrays that women are adhered to ethnic clothing;
however, David Jones primarily sells western outfits. In this context, there is a huge
chance of facing competition. Thus, company is focusing on teenagers and women below
25 in availing their western outfits.
● Psychographic factors of Indian customers lean towards a traditional lifestyle, where their
culture and ethical values play an important part (Zhang, Guo & Goes, 2013). Company
Market
segmentation
Targeting
customers
Positioning
of products

ASSESSMENT ITEM 2
needs to focus on personality and style statement of people and accordingly segment their
market, since; India is a country full of mixed culture.
● Behavioral factors include desires, personal beliefs as well as creativity of customers. The
company, being new to market, will face difficulty in analyzing behavioral aspect of
customers and their choices.
Target customers
On successful analysis of the market segmentation, David Jones needs to set a particular segment
and target customers of that segment, which will provide them maximum profit. David Jones has
primarily set their customers as per the demographic factors. They would target teenagers and
women their age ranging from 15-25 years, and thereby promote their western outfits. Pawliczek
& Rossler, (2016) have opined that women of this age range would be keen to shift their choice
of clothes from tradition to western outfit.
Product positioning
Company needs to identify a unique selling proposition, considering the factors as to why Indian
customers would be availing their service. They need to portray a positioning map and note the
perception of their target customers about their products. As stated by Fernie, Fernie, & Moore
(2015), a value proposition is to be created to explain the fulfillment of target customers’ needs
and adopt appropriate promotional strategies.
Competitive Analysis of Davis Jones in India
David Jones can analyse the market competence on their entry to the retail market of India with
the assistance of Porter’s Five Forces of Competitive theory. This has been discussed below:
Competitive rivalry ● Tough competition will be faced by
company from the existing local
retail market (Westside, Max,
Provogue) as well as international
organizations (Amazon, Gap,
Burberry) that are operating in India

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prior to entry of David Jones
● Existing companies have greater
knowledge of customers as well as
prevalent market situations. Thus
during adverse market conditions,
David Jones will face a tough time
in sustaining in market.
Supplier bargaining power ● David Jones, being a new entrant in
Indian retail market, will come
across a number of suppliers. A new
organisation is also subjected to
switching to an alternative supplier,
on being rejected from one
(Pawliczek & Rossler, 2016).
● High bargaining power of suppliers
will be faced by David Jones on
entering Indian retail market.
Buyer bargaining power ● Company will be getting a number
of buyers since, customers are
generally curious of availing the
services of a newly entered
company in market.
● David Jones will be attracting a
large number of women customers,
as they are launching western
clothing and apparels for women.
Threat of Substitution ● Products of David Jones have high
chances of substitution on entering
Indian retail market, since they will

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be facing huge competition from its
both local and international rivals
(Westside, Burberry). If customers
are dissatisfied with their services,
they would substitute it with
products of the competitors.
Threat of new entry ● Company will counter high threats
from other international companies
that are planning to launch their
products in Indian market by
adopting technological
advancements and innovative
marketing strategies.
● In addition to this, there is a
constant entry of local retail
companies in the market who are
well acquainted with customer
choices and market factors. They
may also impose a threat to David
Jones.
Organizational analysis of David Jones in India
In order to evaluate the situation of the organisation on operating its business activities in India,
SWOT analysis is performed:

ASSESSMENT ITEM 2
Figure 3: SWOT analysis
(Source: Brito et al. 2015)
Strengths
● Firm supply chain management
system is prolonged by David
Jones. They follow convenient
stages of supply chain management,
which are selection of raw
materials, process of manufacturing
and distribution process.
● Bull et al. (2016) said that, effectual
management of production adds
value to its sustainability in market.
A specific design is maintained by
the company to stock management
system that varies from 4-5 weeks.
After that, a new set of designs are
being formed. As a result, company
Weaknesses
● Self contained or centralized
distribution system is the main
weakness of David Jones. Owing to
this system, fault in any one factors
of the production can cause the
whole system to get collapsed.
Decentralized distribution system is
followed by rival companies of
David Jones that has allowed them
to gain competitive advantage.
● Advertisement process and
communication with customers are
not being appropriately
implemented by this company. Lack
of promotion can cause a huge
Strengths Weaknesses
Opportunitie
s Threats
SWOT

ASSESSMENT ITEM 2
fulfils customer needs more,
compared to other companies.
impact on business.
Opportunities
● Scope of global expansion in other
continents has imposed a great
opportunity on enhancing the
business activities.
● Focusing on online market can also
be a great opportunity
Threats
● Extreme competence in market has
caused a great threat in operating
business activities.
● David Jones has not collaborated
with any of the eminent
international designers, thus there is
no such brand label.

ASSESSMENT ITEM 2
ASSESSMENT ITEM 3: INTERNATIONAL MARKETING PLAN
Executive Summary
David Jones is a retail company based in Australia. They intend to expand their
operations in India. They have a chance of generating an additional profit of 4% annually from
the new operations. In addition, the company aims at deriving additional 12% profit margins
annually with intended 10 % sales derived from internet operations. Based on the growth
opportunities in the Indian Market, the company has a high expansion opportunity, which calls
for proper planning and implementation. David Jones is well positioned to take advantage of the
existing market segments in India. The key marketing strategies used by David Jones will be the
4P’s of Marketing; people, prices, promotion, and places. The company will operate at a low
price strategy, which will be facilitated by reduced costs of operations. The expected sales for the
first year will be approximately $ 28.8 Million.
Mission Statement
To become the global leader in retailing and satisfy the needs of all our customers though
provision of quality products in timely and convenient manner.
Objectives
 Sales of by the second year
 Always have a margin of 12% on all products and services
 Derive at least 10% sales through the internet

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 Develop joint ventures and Strategic Alliances with both local and international, and in
India.
Recommended Market Strategy
Market Entry Mode
A market Entry mode strategy involves the company realizing their growth by focusing
on the already existing customers. This will be possible through the current retailer’s retailing
programs. The available opportunities that will either attract consumers from their already
existing market who have not currently patronized with David Jones (Farris, 2004). To penetrate
new markets easily the company will use entry strategies such as; direct investments, this will be
by opening up streams of subsidiaries in foreign markets after having met all the legal
requirements of that country (Homburg, 2009). Second, they will use joint ventures in regions
with potential markets but high barriers to entry. This will be by entering into partnership with
local firms operating in India (Farris, 2004). Third, the company will apply the Strategic alliance
strategy, by this the company will enter the market as a direct investor but using UPS or DHL to
lower risks.
Segmentation, Targeting, and Positioning Strategies
This model has grown to be the saving most popular model in developing effecting
communication strategies. The STP Model mostly deals with the target market audience authors
(Fifield, 2008). Segmenting strategies entails the identification of potential consume who have
unmet customer needs and then positioning themselves to target that market group.
To strategically position themselves, the retailer will create a distinct product design and
make use of a unique retail mix to enhance a good retail image in the minds of the customers in

ASSESSMENT ITEM 2
comparison to the image they have concerning the company’s competitors (Fifield, 2008).
Positioning concerns itself with the image in the mind of the customers not the ones in the retail
manager’s mind. Thus for David Jones, they need to identify what their image is like and ensure
image consistency based on the needs of the customers in all the markets.
Marketing Mix Strategy
David Jones Retail should make effective use of all the communication devices that are
applicable in generating public awareness about their existence and the type of products
available in their stores (Aaker, 2007). These efforts are important as they facilitate the building
up of a retail store image. To promote the company, David ones uses advertisements, sales
discounts promotion, publicizing themselves, and personal selling through public relations
(Dawson, 2005). The marketing mix strategy involves a combination between four major
elements; Product, Place, Price and Promotion. It is worth noting that none of the four Marketing
mix can exist on its own. To reap positive outcomes David Jones must ensure that they
effectively the company should distribute shaping strategy.
David Jones require an exceptional promotion of their products and services. To achieve
this, the company will use their database to identify which of their products are consumed more
and by which class of customers (Goi, 2009). After this identification, promotions will be carried
out focusing to offering these products as first products. The promotional activities are aimed at
creating brand awareness which will then foster a band equity.
Second, the other most relevant in the marketing mix is the location of the company. The
location of the new David Jones stores should be an area with ease of accessibility. For example,
most of the intended locations will be in malls, which are areas with high people traffics
(Lehmann, 2007). In addition, areas near colleges and universities are preferred. The importance

ASSESSMENT ITEM 2
of the locations’ strategy is that it cannot be imitated. Once David Jones has identified the best
place to locate their stores in India they can then consider searching for a second best location
(Aaker, 2007). This is the best Strategy as it will enable the company to develop a strong
competitive advantage across India (Aaker, 2007). This will facilitate thorough marketing of
their recent market and endures that it has been penetrated and exhausted completely before
moving to a different location.
Third, David Jones value their people, their customers are treated as the most significant
resource in the organization. Their customer services extend to great heights beyond their
complementary services (Etgar, 2007). All employees know all-important key details regarding
their customers. This is the same strategy that the company plans to extend the same customer
value to their new markets in India. David Jones has planned to build a strong customer base in
India (Goi, 2009). To establish a sustainable competitiveness, this will be possible by creating a
strong and loyal pool of customers for the company. This will be enhanced through strong and
excellent customer services (Etgar, 2007). In addition, the company values the role their
employees play in serving their customers and creating high customer loyalty. The company will
have highly knowledgeable staff merger who are highly committed to the realizing the goals of
the organization (Cateora, 2011). To create a pool of competitive employees who are committed
and loyal to the company, David Jones goes ahead to drop several of the traditional ways of
running organization in a hierarchical manner, they offer flexible working hours, and hold
continuous leadership meetings during which all employees are equipped with leadership skills
hence sweeping away the hierarchical leadership, each employees leads at them of own levels
and space (Laermer, 2007). David Jones will also add more satisfied employees by motivating
employees, fostering and organizational culture that embraces and effectively manages diversity.

ASSESSMENT ITEM 2
Last, David Jones intends to use the price marketing mix to attract large volumes of
customers in their new markets in India. In order for them to offer quality products at lower
prices the company needs to have effective cost reduction strategies and also ensure that they
have the right merchandize at all times (Lymbersky, 2008). To lower the operating costs David
Jones plans to use efficient distribution and Information systems that facilitates chances of low
operating costs.
Economic Evaluation
Economic evaluation helps a company in giving a breakdown of all financial related issues
including revenues and expenditures. It acts as a financial indicator for any firm willing to fund
the project. For David Jones, their economic evaluation is as illustrated below;
Step 1
The company aims at tapping 4% of the market share within the first year of operation in the new
market. The total market share of this product in the new market is 4 million target customers.
Market size=3.6 million
Expected customer size in year 1=3600000/0.4= 144,000 customers
Average Annual Purchase= A$200
Estimated Annual Revenue=A$ 28.8 million
Step 2
To penetrate the market a detailed analysis of the target market will be carried out. This will
involve visiting the market to determine the strategic market segments to be covered and the
specific business location. During these processes, the business incurs the following costs;
Travel costs to and from the new market= A$2 million

ASSESSMENT ITEM 2
Costs of identifying and paying for the premises= A$1.5 Million
Step 3
Product Mix Costs; Production, Research and Development = A$ 5 Million
Promotion Mix Costs=A$ 1 Million= A$ 1 Million
Distribution Strategies and People related costs= A$ 3.5 Million
Physical Cues Costs; rent =A$ 2 Million
Total Costs = A$9.5 Million
Step 4
The company anticipated revenue totals ton 28.5 Million with a total spending of 9.5 million.
This therefore shows that despite investing in the foreign market being a plan that illustrates the
expected dignify for the inability to penetrate new foreign markets. This is important because it
will help the organization determine the viability of the intended expansion project
Implementation and Control
Action Plan Application
ACTIVITY RESPONSIBLE START DATE COMPLETION DATE
Grand Opening Start of operations in
India
1/02/2017 1/02/2017
Joint Ventures Ease the penetration of
the Indian Market
09/10/2017 09/10/2017
Strategic Alliance Lower the risks
associated with new
market penetration for
direct investors
06/12/2017 06/12/2017

ASSESSMENT ITEM 2
Monitoring of Action Plan, Contingency Plans
David Jones oversees operation require contribution from several stakeholders. For
instance, the employees’ contributions are very critical because employees offer a direct link
between the company and the customers. In addition, the company will continuously engage
with customers, suppliers, competitors, business partners, and the other organizations that they
intend to enter into Strategic Alliances with.
Conclusion
David Jones has extreme potential to become one of the leading international retail companies.
On their entry to Indian retail market, they would face a large number of adverse factors that
would risk their sustainability in the market. In the assignment, probable market analyses have
been performed that would help the company in managing revenue growth, following unique
business strategy and understanding the needs of customers in the new market. Evaluation of the
market analysis and successful implementation of the strategies would help the organisation gain
profit in the international market.

ASSESSMENT ITEM 2
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