Strategic Development Report 2022

Running head: STRATEGIC DEVELOPMENT
DAVID JONES
Strategic
Development
Proposal
10/12/2019

STRATEGIC DEVELOPMENT 1
Executive Summary
The aim of this report is to propose a strategy for the strategic development of David Jones.
The report has applied the porter five force model over the departmental store industry in
order to identify the challenges that is impacting the performance of David Jones and which
strategy that can best suit for the development of the company. From the analysis, it has been
identified that company is dealing with intense competitive from the discount retailers and
other retailers which can be overcome by adopting cost leadership strategy. Under this
strategy the company has to reduce its production cost and manage the quality of the product.
Besides this, this strategy is justified for the company as it will help in increasing the capital
resources and increase market share.

STRATEGIC DEVELOPMENT 2
Table of Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Market Status of David Jones................................................................................................3
Porter Five Force Model........................................................................................................4
Threat of Substitute Products.............................................................................................4
Competition among Existing Players.................................................................................5
Power of Supplier...............................................................................................................5
Threat of New Entrant........................................................................................................6
Power of Buyer..................................................................................................................6
Proposed Strategy for David Jones........................................................................................6
Justifications of the choice of strategy...................................................................................8
Conclusion..................................................................................................................................9
References................................................................................................................................11

STRATEGIC DEVELOPMENT 3
Introduction
Strategy development also called as strategic planning is important in creating and operating
a business. It is also considered as the game plan that works in setting the objectives and
goals and is capable of getting change depending on the market dynamics. Strategic
development procedure and services are created to support senior teams and executives of the
business functions to develop strategies that can evaluate the business to the new level of
active business actions and planning (Wirtz, Schilke and Ullrich, 2010). The intent of this
study is to present the strategic development report for David Jones by analysing the
competitive forces that are impacting its performance and accordingly framing strategies that
can help in eliminating barriers and can support in growing in the market. In the end, the
study is providing the justification for the selection of the specific strategy.
Market Status of David Jones
David Jones is one of the well-known upmarket department stores of Australia, owned and
managed by the Woolworths Holdings Limited one of the famous South African group since
2014. In the year 1838, David Jones was founded by David Jones, who is a Welsh merchant
and future politician after he shifted to Australia (David Jones, 2019). David Jones is the
oldest department store operating across the world and still being traded under the same
original name. In the year 1980, the Adelaide Steamship Company got the considerable
interest in David Jones. Presently, David Jones Limited has around 45 stores in almost every
states and territories of Australia. The key competitor of David Jones is Myer. Headquarter of
the company is established by the parent company in Sydney. In the year 2016, the company
launched its first store in New Zealand. The profit of the company plunged 50% in the year
2018, underlining tough situations in the sector of department store, but a bounce in the sales