Premier Investments SWOT Analysis

This assignment requires you to conduct a thorough SWOT analysis of Premier Investments, a leading Australian retail company. You'll examine their financial performance, non-financial metrics like customer satisfaction and brand loyalty, competitive advantages, and potential threats. The analysis should consider their global expansion strategies, particularly focusing on the brand Smiggle. Drawing from case studies and relevant academic sources, you'll evaluate Premier Investments' overall business strategy and its future prospects.

Running head: STRATEGIC AN SUSTAINABLE ACCOUNTING 1
Strategic and Sustainable Accounting
Student by (Name)
Institution

STRATEGIC AN SUSTAINABLE ACCOUNTING 2
Executive Summary
Premier Investments operators as firm have been operating in the global market for a
while and have acquired profit from their operations. Even though the organization has various
competitive advantages, some of their products have not been doing well in the recent past and
should therefore adopt various non-financial and financial strategies to assess their performance.
The company should also adopt a competitive strategy in order to stay on top as a retail firm.
Premier Investments operators as firm need to develop its business strategy with the support of
sound business management knowledge and measurement strategies. The content of this paper
therefore exploits various competitive advantages of the firm as well the weaknesses, strengths,
opportunities and further recommends an appropriate future strategy. The report therefore ends
with the with discussion of various non-financial and financial measures which can be utilized by
Premier Investments operators in order to evaluate the performance of the recommended
business management strategy.

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Introduction
The content of this paper is a report to the senior management team of Premier
Investments operators in concern with the future strategic position of the organization. The
content of the paper further addresses how the company can employ the recommended strategy
within this content to increase the performance of some of their brands within the group. The
content also exploits the sound business management knowledge to explain how Premier
Investments operators can grow as firm through the international and online sales expansion
(Batholomeusz, 2017). The firm operates in the global market with other firms which offer stiff
competitions and should therefore exploits various opportunities, improve on their strengths and
work on the weaknesses in order to remain relevant in the retail industry.
The content of this report with regards to the stiff competition within the global market
therefore analyses the performance of Premier Investments operators using the SWOT analysis
as well as potters strategy to evaluate the performance of the organization in the market as well
as within the firm. The paper also contends on various financial and non-financial measures to
identify how the firm will perform in relation to the developed and recommended strategy
(Chang, 2015, October 10).
(a)Premier Investments Operators Competitive Advantage
Premium Investments operators as firm have been enjoying various advantages as
revealed in the case study which have enabled the firm to stay on top of other retail firms in the
global market (Chang, 2015, October 10). The firms as revealed in the case study have various
abilities which it has gained through attributes as well as resources to perform at a better level
compared to other firms as follows:
Stable Financial Health

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The Premium Investments operators have strong financial health ratings which is one of
the competitive advantages in relation to other retail and rag investments.in relation to other
investments such as Myer, Premium Investments operators have accumulated large funds which
have enabled it to acquire various stalls and construction retail centers all over the world such as
Hong Kong, Malaysia, Singapore, Australia and New Zeeland(Chang, 2015, October 10). The
company has got a lower total liabilities in comparison to the total tangible assets ratio, this
ration implies that Premium Investments operators has got a greater ability to weather various
changes in their operations.
The company is therefore less susceptible to financial challenges compared to other retail
rag investors in the global market such the Myer who is also one of the firms which offer stiff
competition to Premium Investments operators. The organization according to the proper
analysis, Premium Investments operators has over the past showed that it has high cash reserves
placing the firm on top of operations in the global market compared to its close competitor
known as Myer (Batholomeusz, 2017).
Strong financial health offers the organization a strong ground to operate smoothly within
the competitive global market compared to other organization. The strong financial health has
further enabled Premium Investments operators a firm ground to expand their operations to
various parts of the globe as indicated (Low, 2017, March 22). Premium Investments operators
with the help of the financial health is currently running an online operation which is a strategy
for bettering the poor performing brands such as Just jeans and others. Many firms in the
industry over the current past have not been able to formulate an online brand promotion method,
thereby making a strong financial health the main competitive advantage compared to other
firms in the global market. The firm as per 15Th May this year had the highest shares pricing to

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$12.70 which resulted into the total market capitalization of AUD$ 2.0billion (Low, 2017, March
22). According to the case study given, the firm has got strong financial ability as the main
competitive advantage over other firms operating in the same industry such as Myer, H&M and
Uniqlo.
(b) SWOT Analysis for Premier Investments
i. Strengths
 Quality management
Premium Investments operators according to the analysis are one of the firms with the
best management team. Availability of proper management is therefore clear strength to the firm
as best management strategies can be made (Hollensen, 2015). The firm’s chairman Mr.
Solomon Lew based on the current information has become the first person in Australia to join
Congress Hall Fame.
 Financial stability
The firm as revealed in the case study in the year 5th may 2017 is financially stable
compared to other firms and is therefore able to expand to various opportunistic regions such as
UK and North America. With stable finance, Premium Investments operators able to manipulate
the products prices and secure the raw materials.
 Increased profit margins
Premium Investments operators in the year ended 2017 has accumulated a great profit
margin as revealed within the case study (Li, et.al, 2016). High profit margins are considered a

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strength to the firm as Premium Investments operators is able to play with prices in relation to
the market in order to remain at the top.
 High performance of Smiggle and Peter Alexander brands
The high performance of the two above mentioned brands is strength to Premium
Investments operators as it results into an increase in the margin of the profit obtained from the
general and the strong financial health of the company.
ii. Weaknesses
 Poor performance of the majority brands
The poor performance of the majority of the brands being offered by Premium
Investments operators is a weak point of the firm which can be utilized by other firms in the
global market.
 Insufficient strategies
The firm as revealed in the case study seems to be lacking perfect strategies in order to
ensure that all their brands are performing well in the global market.
 Constant pricing
The organization has not been able to play with the prices of their products in order to
control the market and this is a weakness of the firm.
 Focus on two brands

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Premium Investments operators has shown a weakness by only being able to focus on
two brands in the global marketing leaving other brands not performing good. The company
sales team should in this case come up with appropriate methods to ensure good performance of
all brands rather than only focusing on two brands.
iii. Opportunities
 Online sales
According to the presented case study, most of the brands being sold by Premium
Investments operators can do well when sold online more so Smiggle and Alexander suits.
 Differentiation
Differentiation is one of the opportunities which exist in the global rag market which
should be exploited by the firm. Premium Investments operators should therefore exploit this
kind of opportunity to design their brands to suit the customer needs.
 Price lead and control
Price leading and control is one of the best strategies firms with strong financial health
like Premium Investments operators can exploit in order to remain at highest level in the global
market.
 Opportunities in UK and N. America

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Premium Investments operators being financially stable has the ability to expand in all
regions of the Asia then move in to various parts where opportunities exist such as North
America and in the UK. The two regions UK and N. America do not have best retailers offering
brands being offered by Premium Investments operators.
iv. Threats
 Stiff competition within the global market
Premium Investments operators being in the global market faces a threat stiff from
various firms within the same industry. The company should therefore come up with an
appropriate strategy in order to beat firm such as Myer and H&M who are some firms rising so
first in the global rag retail industry.
 New venture by new firms on online sales of various brands
They are various firms who are currently joining the industry but majors on online sales
which will see these firms beating Premium Investments Operators in sales of Smiggle and Peter
Alexander suits.
 Poor performance of majority of the brands
The poor performance of the majority of Premium Investments Operators brands is a
threat to the operations and existence of the firm in the industry(Li, et.al, 2016). Most of the
brands such as Just Jeans, Jay Jays, Dotti, Portmans and Jacqui E being offered by Premium
Investments operators in the global market do not perform well thus imposing threat of existence
of the firm in the market due to low sales.

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 Rise of Myer operators
Even though Premium Investments operators is still leading in the rag retail operations,
the organization is currently facing challenge from Myer which in this year is rising so fist in the
global market (Li, et.al, 2016). Myer according to various resources is currently having almost
close assets to that of Premium Investments operators thus a threat to the organization.
(c) Porter’s Strategy That Can Be Adopted by Premium Investments Operators
Focus Strategy
The firm such as Premium Investments operators can identify their relative position
within the global firm as to whether the firm has a profitability margin which is lower or above
the industry average profitability (Palmer,Wright & Powers, 2015). In order for Premium
Investments operators to ensure constant profitability and remain at the top level in the industry,
the team of management of the firm should come up with an appropriate, sustainable and long
run strategy. The most appropriate and sustainable long term strategy recommended by
Premium Investments operators is the focus strategy. Focus as a strategy is one of the generic
strategies that are divided into two segments and narrow competitive scope within the rag retail
industry (Palmer,Wright & Powers, 2015). The main purpose of the focuser is to selects a
segment within the global retail market and tailors the identified strategy to exclusion serving the
segments.
The focus strategy has two variants that are cost focus and differentiation. Premium
Investments operators is therefore advised to employ the use of the focus strategy where the firm
is recommended to use cost focus to seek cost advantage in various target segments in order to
stay at top of the industry (Ruiz & Kowalkowski, 2014). Another variant that Premium
Investments operators should employ is differentiation where the firm should seek differentiation

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in its identified segments. It is from the case study that most of the Premium Investments
operators customers have unusual needs and not able to buy other brands such as Just jeans, Jay
Jay and other brands (Palmer,Wright & Powers, 2015). The firm should therefore adopt the focus
strategy and serve their customers in relation to their needs and desires.
(D) Financial and Non-Financial Measures to Evaluate the Focus Strategy
The recommended focus strategy success can be identified through application of
financial and non- financial measures as follows:
Financial measures
a) Investment analysis
Investments analysis is one of the best financial measures which can be exploited by
Premium Investments operators team of management (Zaman, 2017). The management team are
require to conduct investment analysis in various segments are identified and new products
invested by Premium Investments operators in relation to varied consumers demand. Investment
analysis is performed in the books of accounts to ensure the financial performance of the firm as
increased as a result of the focus strategy adopted(Zaman, 2017).
b) KPIs
KPIs are one of the most utilized strategy performance measures which should be
adopted by Premium Investments operators in order to evaluate the performance of the
recommended focus strategy (Sauaia, 2014). KPIs are a combined measure which utilizes both
financial and non-financial measures can be used to evaluate focus strategy.
Non-Financial Measures

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These are some of the qualitative matrix that cannot be expressed in terms of monetary
value units as follows:
a) Innovation
Innovation is the ability of the Premium Investments operators to bring new brands into
to the global market in relation to the created segments identified by the focus strategy (Fullerton
& Wempe, 2009). Identification of new innovations in the industry by the firm suggests the
effectiveness of the focus strategy adoption.
b) Take Rate
The success and failure of the developed focus strategy can be evaluated using take rate
of the strategy by the consumers (Sauaia, 2014). The success will therefore be used take rate as
measure of the success of the strategy. Where there is high take rate by the consumers on the
strategy then the company can be considered perfect.
c) Company reputations
The firm’s success in relation to the focus strategy recommended can be evaluated with
regards to Premium Investments operators reputation in the industry which is only through its
level at the global market (Christensen & Nikolaev, 2013). The strategy recommended should
results into increased firm reputation as compared to before the adoption of the strategy.
Conclusion
The reports finally concludes with the analysis of the of the impact of the international
business environment, socio-cultural requirements and global competitiveness in relation to the
management accounting multinational, national, and regional organizations that, establishment of
a working strategy is crucial for the growth of the any firm. It is therefore recommended for

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Premium Investments operators to adopt the best focus strategy as discussed within the content
in order to increase all their brands performance and remain at the top of the rag retail industry.

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References
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