Analysis of David Jones Market: Size, Trends, Financial and Corporate Performance

This report analyzes the market size, trends, financial and corporate performance of the David Jones organization. It includes analysis of the market size, trends, financial and corporate performance of the mentioned company. The report also contains detailed SWOT analysis and competitive advantage analysis. Finally, it provides strategic options available for the company to enhance its revenue by eradicating the issues along with providing recommendations.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author Note

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● Company name: david Jones Limited
● Size of the industry: In the year 2018, the annual revenue of the Australian retail market
was 571.1 billion dollars which is 2.2 percent higher than that of the previous year.
● Contribution of the industry in the country’s GDP: When it comes to contribution of the
retail market of the nation on its GDP, in the year 2018, the retail sector have contributed
to approximately 1.22 percent of Australia’s GDP
● Top 5 key players: The top 5 players of the retail industry in Australia include the Myer
organization, Woolworths Group, David Jones Limited, Coles and Wesfarmers.
Market Size and Trends
David Jones Pty Limited is referred to an Australian upmarket department store which is
owned by the South African retail group Woolworths Holdings limited. The headquarters of the
organization is located at Melbourne Australia and the total number of location in which the
mentioned organization is present includes 48. The key areas served by the David Jones retail
organization include Australia and New Zealand. The company offers the consumers with retail
and household items. The retail sector of Australia has demonstrated and significant growth
despite the low enhancement in wages and rising household debt. In the year 2018, the annual
revenue of the Australian retail market was 571.1 billion dollars which is 2.2 percent higher than
that of the previous year. When it comes to contribution of the retail market of the nation on its
GDP, in the year 2018, the retail sector have contributed to approximately 1.22 percent of
Australia’s GDP (Chapman, McLellan & Tezuka, 2016). The top 5 players of the retail industry
in Australia include the Myer organization, Woolworths Group, David Jones Limited, Coles and

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Wesfarmers. When it comes to the latest trends of the mentioned organization, one of the chief
treads includes excessive increment of online shopping. The aging population and the high speed
life of Australians can be considered as the chief reason behind this trend.
Financial and Corporate Performance
In spite of the fact that the company has incorporated a good number of marketing
strategies in order to attract local consumers, in the year 2018, the mentioned organization
evidenced a 58.3 percent drop in its profit (Tan & Bogomolova 2016). This drastic deterioration
of the financial performance of the organization can be considered as the result of same store sale
and lacks of effective online marketing. While the yearly profit of the organization in 2017 was
108 million dollars, in 2018 the profit of the organization is roughly 45 million dollars. The
department store has achieved a flat gross profit of 820 million dollars but there were enhanced
expanses for the store openings as well as for new food formats. In order to deal with the
decreasing revenue, the organization has stated to invest on online replatforming. When it comes
to the corporate performance of the mentioned organization it has been seen that the management
of David Jones has performed effective market segmentation. The chief target consumers of the
mentioned organization are the middle class and upper middle class consumers. The branch
managers of each David Jones outlet effectively keep track of the supplier chain in order to
ensure that high quality products are offered to the consumers.
SWOT and Competitive Advantage

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In order to gain effective competitive advantage, it is highly crucial for the management
of David Jones to b aware of its strengths, weaknesses, opportunities and Threats. In the
following table a brief SWOT analysis of the company has been conducted.
Strengths
● Unrelenting loyalty of the consumers
for the brand
● A vast range of high quality Australian
as well as international brands spread
across living, beauty as well as fashion
● Brand equity of the company can be
consider as another major strength of
David Jones
● The acquisition of the company by
Woolworths holding has result in
improvement of its market position in
the international market.
Weaknesses
● The global financial crisis has weaken
the financial position of the company.
● The company has lost sales to
international online retailers
● The huge amount of capital invested on
the refurbishment of the stores have
lower the cash flow for other areas
within the organization.
Opportunities
● The company can promote its business
online
Threats
1. The rise of its major competitors in the
Australian retail market can be
considered as one of the major threat

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● The organization should expand its
business in the eastern countries in
order to enhance its yearly revenue,
consumer base as well as global
recognition (Weisbrod Mulley &
Hensher, 2016).
for the organization.
2. Completion threats from the
international retailers in the online
marketing sector iss also significantly
high
3. The cost prosing harmonizing strategy
of the company is resulting in loss of
suppliers.
When it comes to the competitive advantage of David Jones over its competitors, the
organization was fund to follow the cost leadership strategy (Scollo et al., 2018). The chief
strategy was to provide high quality products at a price slightly lower than its competitors.
However, with the increased strengths of the suppliers The consumer is losing its suppliers.
Strategic Options
Two major strategic options are open for the management of David Jones Limited. These two
options have the potential to increase its revenue by a drastic amount in the coming 5 years.
1. The online presence of David Jones is much lower compared to that of its competitors
like Coles, Woolworths and Myers. Hence, the company needs to invest on online

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marketing as well as promotional techniques in order to enhance it product awareness and
consumer base (van Putten, Cvitanovic & Fulton, 2016).
2. The second strategy includes expansion to the eastern countries that are far less saturated
than developed countries like Australia.
Possible Recommendations
1. The company should invest on social media marketing. This will not only lower the
online marketing cost of the company but will also help the same to target a huge base of
consumers within a limited amount of time (Sutton-Brady, Kamvounias & Taylor, 2015).
2. For global expansion, the management of David Jones should select developing counties
like India and China since the saturation of the retail industry is much less in those
countries compared to the other countries.

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Reference List
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Sutton-Brady, C., Kamvounias, P., & Taylor, T. (2015). A model of supplier–retailer power
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van Putten, I., Cvitanovic, C., & Fulton, E. A. (2016). A changing marine sector in Australian
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Weisbrod, G., Mulley, C., & Hensher, D. (2016). Recognising the complementary contributions
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