Strategic Management Analysis

Running head: STRATEGIC MANAGEMENT ANALYSIS
STRATEGIC MANAGEMENT ANALYSIS
Name of the Student
Name of the University
Author Note

1STRATEGIC MANAGEMENT ANALYSIS
Executive Summary
The report is based on the analysis of an organization named Target Australia that operates in
the retail industry of Australia. The different aspects of the organization that has been taken
into consideration for the analysis are, the market size and existing trends, financial
performance, internal environment analysis and competitive advantage. The strategic options
to be taken by the company are also considered in the analysis. The recommendations are
provided for future development of the operations of Target in country.

2STRATEGIC MANAGEMENT ANALYSIS
Market size and trends
Market size refers to the total number of individuals in a particular market segment
who are considered to be the potential buyers. The department stores sector in Australia as
per the report of September 2018 has grew by 3.7% as compared to 2 years ago. The industry
has witnessed a positive and productive growth, despite of significantly low increase in terms
of wages and rise in the household debt. It is expected to increase by 20% in order to reach
1.1 trillion U.S dollars by the year 2020. However, as per Fleming, Nguyen and Ruela
(2019), the shrinking in the market size and the intense competition would reduce the
department store sector in Australia which in turn will affect the business operation of Target
Australia to a significant level. The operators in the Department stores industry have faced
some significant challenges over the last five years because of the weak retail environment as
well as the highly negative customer sentiments. One of the key trends that have influenced
this condition in Australian market is the fact that customers in Australia have become highly
price sensitive and reluctant for spending their discretionary income, instead of preferring to
pay down the debt and for boosting their savings. Moreover, it is also to mention that as per
the recent data, the departmental store industry revenue is expected to fall at a yearly 0.2%
over the 5 years within 2019 to 2020, to 18.8 billion dollars (Bailey, 2017). The uncertainty
in the economic conditions along with the intensified external online competition among the
other players in the market are likely to aid to a 0.5% of decline in the total revenue of the
departmental stores sector very soon in the present year. It is also to note that this industry is
notably concentrated in Australia, with the top players expected to account for about 95% of
the total industry revenue very recently.
Financial and corporate performance