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Managing Innovation in David Jones Company- Case Study

   

Added on  2019-11-26

21 Pages4933 Words166 Views
Running Head: Managing InnovationManaging InnovationDavid Jones Company

Managing Innovation 1Table of ContentsIntroduction.................................................................................................................................................2Question 1: David Jones Company's threats and opportunities....................................................................3Threats.....................................................................................................................................................3Opportunities...........................................................................................................................................4Question 2: David Jones Company's strengths and weakness......................................................................6Strength...................................................................................................................................................6Weakness................................................................................................................................................7Question 3: Innovative future Growth of David Jones in next 10 years.......................................................8Conclusion.................................................................................................................................................10References.................................................................................................................................................11Appendices................................................................................................................................................14

Managing Innovation 2IntroductionIn the growing era, SWOT Analysis is an important tool which helps them to develop an understanding of the internal factors of an organization, so that they can assist them to create efficiency in future performance of the organization. The strengths and weakness signify the internal factors of the organization whereas opportunities and threat signifies external factors of the organization. This analysis is performed by all types of organizations because it assists them in organizational goal setting planning process (Bull, et. al., 2016). The analysis is a forward as well as a backward looking process as it helps the company to get to know about the company's internal and external factors affecting the future innovation trends. The David Jones Pty Ltd, colloquially known as DJ is an Australian company which is involved in departmental store business. The company is owned by the South African Retail shop and the group of Woolworths holding Limited. DJ was originated in the year 1838 by David Jones. The company is world's oldest continuously operating department store traded with the same name. The company currently holds 43 stores in Australian states and territories. David Jones is headquartered in Sydney, Australia. The company serves products like cosmetic, fashion, food, electrical etc. to its customers. The previous year the company earned revenue of A $ 2.2 billion, with which it shall be noted that the company is earning well in its industry despite having tough competitions. Further, there are more than 7200 employees in the organization, so it can be said that the company is growing with a good speed and is aiming high for future innovation plans as well. More details and activities of retail company David Jones are discussed below.

Managing Innovation 3The report will cover the SWOT analysis of David Jones Ltd. with respect to future innovation trends. It also provides an overview of the company in relation to future innovative activities which the company is planning to implement. The details are discussed below:Question 1: David Jones Company's threats and opportunities Threats: threats refer to the penalties which can attract the company and reduce its growth. The threats of the David Jones Company are as follows:Increasing competition in the external environment: the fact shall be noted that as there is tough competition in the market, resulting to which the growth of the company is hampered. Further, it shall be noted as there is a consistent entrance of new brands coming in the market industry due to which customers o the company shift to new and different brand prevailing in the market. This reasons act as a barrier to the growth of the organization (Hollensen 2015). Although the company has surplus amount with the aid ofwhich DJ can make innovation and identify them in the market. But for the same, the company needs to implement a proper management, and in this case, the company lacks (refer appendices 1.1). Limited Brand Loyalty provided by customers: DJ being a highly branded product provides adequate quality services to its customers, but apart from providing adequate quality along with quantity the company is unable to receive brand loyalty from its customers. Brand loyalty refers to the process in which the customers are sufficiently satisfied with the products and services provided by the organization, resulting to which in return they provide they provide their loyalty to the company by making a repetition ofsales (Yuan 2013). Getting more and more customer does not initiate success for a

Managing Innovation 4company, instead of getting repeated sales by the same customers of the organization helps them in achieving success. The easy entrance of new competitors: in the retail industry, as there are easy entrancesof the suppliers of products and services in the market, thus the fact shall be considered that due to this the brand image which the old companies are willing to create is lost (Yu, et. al., 2015). Also, these new companies render services to the customers at low and cheap prices resulting to which the customers present in the market get attracted towards these company which loses the significance of such companies in the eyes of the customers as well as in the industry (refer appendices 1.2). Another threat to the companyis that along with tough competitors present in the market, constant entry of other firms isalso reflecting the growth of the company (Ngo, and O'cass 2013). Opportunities: Opportunities refer to the chances which the company receives. If these chances have opted wisely then it can act as a speedy growth for the company (Carayannis, and Grigoroudis 2016). The details of the Company David Jones are explained below:Entrance in pharmaceutical business: this is one of the fields in which the company has not and if they will then they can earn optimum return. Thus, company's activities to step into pharmaceutical field can help them to gain higher profit than expected. After themarket, the management of the company also identified the fact that there is already few distributor and manufacturer of pharmaceutical products in the Australian market. Also, anther fact which shall be taken into concern is that the in this industry there is the restriction on entry and exit of firms (David Jones 2012). The company David Jones will easily receive entrance in this field because of having an oldest store in Australia and big one of the biggest departmental stores in Australia. Thus, it can act as an opportunity for

Managing Innovation 5the company and it can help them to earn well and generate good customer base in the global market (refer appendices 2.1). The weakness of Australian Dollar acting as an opportunity for company: looking practically a the different economic aspects of the market the fact that came in consideration is that with decrease in value of Australian dollar in the international market, the power of local customers decreases to purchase products of international brand or products which are placed internationally (Huhtala, et. al., 2014). Thus, they need to return to the retail local stores present in their geographical boundaries. Due to this reason, the sale of the company increases and the old customers of the company also come back to the company only (refer appendices 2.2). Also, with this process, the company receives an opportunity to retain their old customers by providing them better services at good prices (Mitchell 2017). Private Label Strategy: the best benefit a departmental company can receive is that theycan apply private label strategy and earn optimum revenue for the company. It refers to the strategy in which the departmental store differentially price different brands and products on their own will. They have the opportunity to increase or decrease the price ofa particular product to increase its sales. Thus, with this process the company can label increased price of the product which is highly demanded and reduce the prices on the label of products which are less demanded, this will increase the sale of these products as well and subsequently the revenue will also increase (Illawarra Mercury 2017). Looking at the above SWOT matrix the fact that shall be noted is that the company has a great scope to implement future innovation trends in their business. Also, they have optimum opportunity to increase the sales of the company and create them product differentiated

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