Strategic Management for David Jones in Australian Retail Industry

Running head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
Name of the student
Name of the university
Author note

1STRATEGIC MANAGEMENT
Executive Summary
The purpose of this report is to review the financial and corporate performance of David
Jones, which belongs to upmarket retail sector. It has been observed that apart from luxury
retailers, entire retail industry is suffering with economic imbalance and to avoid that out of
two strategic options private labelling of the product line has been chosen as the most
appropriate in order to create competitive advantage. Along with that, it will help to combat
the market risk as far as Australian economy is concerned. After reviewing the financial and
corporate performance, the final strategy of labelling products under private ownership is
feasible. The steps of strategic implementation have been described considering the market
size and trends as well.

2STRATEGIC MANAGEMENT
Table of Contents
Introduction................................................................................................................................3
Market Size & Trends................................................................................................................3
Financial and Corporate Performance........................................................................................4
Financial performance............................................................................................................4
Corporate performance...........................................................................................................4
Strategic Options....................................................................................................................5
Final Recommended Strategy................................................................................................5
Implementation of Final Strategy...........................................................................................6
Monitoring and Control of Future Performance....................................................................8
Conclusion..................................................................................................................................8
References................................................................................................................................10

3STRATEGIC MANAGEMENT
Introduction
David Jones Pty. Ltd is an Australian organization operating in upmarket retail sector.
The have their wide territories expanded across Australia and different states, competing with
brands like Myer. The following report intends to analyse the retail market sector of Australia
using the example of the above mentioned David Jones. As per the report of financial and
corporate performance strategic options will be suggested and various execution methods will
be described about how it can take advantage of existing opportunities and mitigate threats
based on company capabilities. With the help of strategic options final strategies and its
implementation procedure will be recommended. In this due course, the importance of
monitoring and controlling future performance will be demonstrated in order to gain a
sustainable competitive edge.
Market Size & Trends
Although, Australian retail sector has experienced a recent decline in business,
companies like David Jones operating in luxury retail market have experienced rapid growth
during this time. According to the research conducted by IBIS, unlike retail sector, upmarket
or luxury retail industry is not facing much difficulty while operating the business. Regular
retailers have failed to combat the competition due to the rise of online retail industry and
increasing customers’ demand towards luxury brands. In spite of such promising market, the
business environment is not so strong and surrounded with risks.
As per as the recent trend is concerned, tourists are increasingly being more attracted
to the quality and presentation of luxury retail goods. As stated in Nguyen et al. (2014), based
on the enhanced income from recent customer behaviour, income has been raised. The
national economic disturbance could not able to create a difference as consumers’ preference
for quality remains same. As per the financial records, the upmarket retail has enhanced its