Country Road: E-commerce Analysis, Strategies, and Recommendations

This report offers a comprehensive analysis of Country Road, an Australian fashion retailer, focusing on its e-commerce strategies and overall business performance. It begins with an executive summary and table of contents, followed by an introduction to the company and its market position. The report delves into Country Road's e-commerce approach, including its digital loyalty innovation, value propositions like low pricing and customer loyalty programs, and revenue models. It examines the company's target markets, business model, and e-commerce marketing strategies. The report also explores the broader fashion retail industry, key stakeholders, competitiveness, and Porter's analysis. A SWOT analysis and PESTEL analysis are conducted to assess the internal and external factors influencing Country Road. The report identifies e-commerce issues and concludes with recommendations. The report provides a holistic view of Country Road's e-commerce journey.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author note

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Executive Summary
The report has thrown light on the overall analysis of the different kinds of ecommerce along
with marketing strategies which played a major role in improving the brand image of Country
Road fashion retailer company which is situated in Australia. Moreover, with the proper
identification of SWOT and PESTEL analysis, the different kinds of issues have been
identified along with identification of the opportunities that played a major role in improving
the business operations of the company in the competitive business environment.

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Table of Contents
Introduction................................................................................................................................3
E-Commerce Approach..............................................................................................................3
Value Propositions.....................................................................................................................4
Revenue Models.........................................................................................................................5
Target Markets...........................................................................................................................5
Business Model..........................................................................................................................6
eCommerce Market Strategies...................................................................................................7
The Broader Industry.................................................................................................................8
Key Stakeholders.......................................................................................................................8
Competitiveness in The Industry.............................................................................................10
Porters Analysis.......................................................................................................................10
SWOT Analysis.......................................................................................................................11
Internal and External Context..................................................................................................12
Internal Capabilities of Country Road.................................................................................12
External Factors (PESTEL)..................................................................................................13
E-Commerce Issues..................................................................................................................14
Recommendations....................................................................................................................14
References................................................................................................................................15

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Introduction
The report throws light on the overall case study analysis of the respective company
named Country Road Company which is situated in Australia. The different e-commerce
approaches along with analysis of the business model of the company is required to be
identified which will be beneficial in analysis of the case study. Moreover, the e-commerce
market strategies are required to be analyzed with proper internal and external environment
analysis that will be beneficial in identifying the different kinds of opportunities and threats
that can affect the growth of the company.
Country Road is one of the middle market clothing retailers which is located in
Australia, South Africa and New Zealand. The parent company of Country Road is
Woolworths Holdings Limited wherein the respective company has more than $17/share. The
company was established in the year 1974 and it is headquartered at Melbourne, Victoria,
Australia (Countryroad.com 2019). The key people who are involved in the respective
process of the company includes Elle Rosebywho is the managing director of the company.
In addition, the company offers clothing of the women, accessories along with footwear,
men’s clothing and footwear as well as kid’s clothing and home wares as well. The revenue
which has been earned by the company is $237.6 million till the year 2016 and the number of
employees who are included in the process is 10000 till the year 2016.
E-Commerce Approach
Country Road Company is following the digital loyalty innovation which is helpful in
driving the instore sales of the company in an appropriate manner. As there has been huge
rise of the different global retailers of fashion in Australian market, there has been huge
pressure on the different other local brands such as Country Road to find the different

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innovative ecommerce approaches to boost their loyalty and drive proper engagement (Yeow,
Soh and Hansen 2018). In managing the respective scenario, the channels manager, Paul
Conti of the Country Road Company has commented that in order to enhance the
relationships with the different customers in the market, it is essential for them to be
technologically advanced and gain competitive advantage in the market.
In order to achieve the e-commerce loyalty from the different customers, Country
Road has tried to collaborate with the mobile loyalty app provider Stocard as to develop the
digital loyalty program of marketing campaign over the four months period which helped
them in managing their reputation and increase the overall sales in the market as well
(WeareDigital.com.au 2019). Through the implementation of the respective ecommerce
strategy, Country Road is being able to sell the different goods along with services at low
cost and the respective company has been able to gain incremental sales lift as it was found
that customer prefer to buy the different products from online stores and loyalty program
have helped them in providing special offers to the customers who are loyal customers.
Value Propositions
The major value propositions of Country Road Company are the low pricing
strategyalong with wide selection of products and services which are available to the
different customers in the market (Solberg 2017). In addition, the customers do not have any
hassle experience related to purchasing which is the other aspect which is followed at
Country Road and there are different customer loyalty programs which are available for the
different loyal customers of the company. Lastly, there are different customer return
privileges available for the customers that help the company in becoming competitive in
comparison to the other competitors present in the market (Schlegelmilch 2016).

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Revenue Models
The revenue model is defined as the framework for the generation of revenues
wherein it helps in identification of the sources of revenue to pursue such as the analysis of
the value which will be offered by the company to the customers and it is one of the essential
components of the business canvas model. In case of Country Road, the digital loyalty
innovation is one of the revenue models which has been successful for them in increasing the
sales (Rutz and Watson 2019). Due to the presence in more than three countries, the average
sales of Country Road have been able to increase by 7% and the high revenues is the ability
of the company of getting the quick merchandise in the different stores.
The respective application of Stocard helped in tailoring the different offers from
Country Road which is inclusive of geo-push notifications and it helped the customers in
receiving notification regarding the in-store sales and offers which are present and they can
make their purchase on the respective basis as well. With the implementation of the
respective loyalty innovation aspect in the organization, there has been increase in the
revenue to 23.76 crores USDtill the year 2017 (Phillips 2016).
Target Markets
Country Road has limited number of stores across the globe and due to the respective
reason, the company follows the selective and concentrated targeting strategy which helps
them in making the products available in the market (Patrutiu-Baltes 2016). Country Road
Company mainly focuses on the selection of the particular market niche wherein the different
marketing efforts are targeted. In case of Country Road, the women and men aged from 15-
45 years of age group are targeted along with the ones who are the fashion conscious,
relatively middle class along with educated (Palmatier and Crecelius 2019). Furthermore, the
company tries to focus mainly on the different customers who are highly interested in the

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different fashion trends which are latest in the market and it is suitable for the working people
and more fashionable ones.
With the implementation of the respective targeting strategy, Country Road Company
has been able to focus on a particular group of customers and it will be differentiating the
different products from the other competitors present in the market that will be beneficial for
the success of the company.
Business Model
The business model of Country Road is flawless in terms of the design to the
efficiency of the outlet that has led to immense cost savings of the company. As Country
Road Company has positioned them as the Penetration Pricing Technique is being used by
them in order to capture the overall market share in comparison to the other competitors
present in the market (Olson et al. 2018). The major approach of Country Road in order to
use the penetration pricing is to attract the huge number of customers and gain competitive
advantage in the market as well. Moreover, the other important aspect of the business model
of Country Road is that they sell products to the customers in a direct manner.
In addition, the success of Country Road Company is the fast fashion model which
has been adopted by them wherein there is reduction in time between design along with
delivery process. The company Country Road is using the e-commerce platform in order to
reach to the different customers and creating loyalty schemes to attract the large number of
customers in the market appropriately (Lee and Griffith 2019). The online e-commerce
platform used by the company has been helpful for the company to provide the customers
with differentiated and distinct kinds of products and services and it creates a differentiated
brand identity.

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Moreover, Country Road considers it important to form the long-lasting relationship
with the different suppliers as there should be inclusion of trust and transparency in managing
the different activities in an appropriate manner (Krush, Agnihotri and Trainor 2016). The
main focus of the company is to develop the suppliers along with increasing the sustainability
related practices. The global expansion of the company has been able to provide proper
growth opportunities for the different workers as well as suppliers.
E-Commerce Market Strategies
The major marketing strategies related to ecommerce of Country Road is to increase
the sales and profitability in the competitive business environment along with lifting the
experiences of the customers while purchasing the different products and services from the
respective company (Kingsnorth 2019). Country Road, the retailer which has focused on
delivering contemporary home design and fashion clothing to men, women and kids in the
market, always considered to make the experience of shopping more valuable and seamless at
the different touchpoints both physical and digital manner.
Figure 1: Driving E-gift card of Country Road
(Source: Key and Czaplewski 2017)

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The driving online gift card sales both offline and online has been appealing to the
different customers present in the market that has helped them in increasing the overall sales
of the company and gain competitive advantage (Hartsfield, Johansen and Knight 2017). The
gift card options for the different local as well as expats was one of the digital opportunities
which has been pursued by them. It helped in allowing the different people in purchasing the
different gift cards online as well as electronically and it helped in improving and shortening
the process of check out.
The Broader Industry
In the view of the overall fashion retail industry, it can be seen and analyzed that
Country Road Company is “Fast Fashion for Everyone at low price”. There is inclusion of
the tailored advertisements for the different demographic segments (Fahy and Jobber 2015).
With the introduction of fashion set of labels named Trendy is aiming in meeting the different
needs of the different customers who wants the different clothes which are simple, beautiful
and stylish at a low cost. In comparison to Myer and Glassons, Country Road has been able
to position themselves as the most cost-effective company to attract the different middle-class
customers.
Key Stakeholders
The major stakeholders of Country Road Company include the following:
Customers: They are the first and foremost stakeholders of Country Road Company
wherein without them, the company will not survive and in case of Country Road, the needs
of the customers come first and the customers can choose to take the business to the
competitors, therefore to satisfy the different needs of the customers through innovating

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products such as inclusion of digital loyalty programme was one such aspect that helped the
company in improving the satisfaction among customers.
Employees:It is the second aspect wherein the different employees play a major role
in the organization as they are the major assets of the company. Furthermore, the employees
try to deliver the different products which are demanded by the customers and at Country
Road Company, the company tries to motivate the different employees through offering
different incentives along with including them in the decision-making process that helps the
company in managing the different activities (Cacciolatti and Lee 2016).
Suppliers and Distributors: Proper collaboration with the different distributors as
well as suppliers play a major role in managing the different activities in an appropriate
manner. In case of Country Road, the company tries to maintain long lasting relationships
with the different suppliers who supply the company with the different goods and services
and it helps Country Road in managing the different activities appropriately (Boscagli 2019).
Owners and Managers: These are the major stakeholders of the company as they are
the ones who expects to grow and make more profits for the company. In case of Country
Road Company, the owners and managers try to enhance the customer experience through
bringing innovation in the digital loyalty programme along with adding cost efficiency in the
business model which helped them in boosting the profit level to a great extent.

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Figure 1: Key Stakeholders of Country Road
(Source: Baltes 2015)
Competitiveness in The Industry
Quality
 The high-quality apparel along with services which are detailed in the process of
production
Design
 The company tries to deliver consistently the customers with the different newest
trends
 Introduced the new brand Trenery
Brand
 It is less affected by the different moves of the other competitors present in the market

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Porters Analysis
Threats from the different potential entrants- It stands saturated in nature reasonably
and it helps in presenting immense kind of scope for the different additional contestants to
enter in the respective market.
Bargaining Power of Consumers- The power is moderate in nature as the different
customers have and determined the trends, affordability along with preferences (Baker 2016).
Threat of Substitutes- The different products and services and contributions which
are constructed through the different competitive brands and it remains the prevalent
substitutes (Baker 2016).
Rivalry Among Existing Firms- There is different retailers amid the footwear along
with clothing segment, lifestyle brands are present comparatively lesser in nature (Baker
2016).
Bargaining Power of Suppliers- The power is limited in nature as there are numerous
suppliers present in the market of Australian economy.
SWOT Analysis
Strengths
It is one of the most iconic brands in the
Australian economy
It is located in both the retail stores along with
large departmental stores as Myer
The company has proper linkage with the social
responsibility aspects to expand their value
Weaknesses
It is incompetent to adapt to alter the different
needs along with wants of the different
customers
The company has failed to examine the different
international competitors present in the market

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Opportunities
The international expansion to augment the
recognize the brand
The proper launching of the brand to target the
different other segments present in the market
Threats
There is fluctuation in the lifestyle related
factors in the different geographic locations
The fluctuation in the economic aspects force
the different customers to transfer to the
different more cheaper brands
Internal and External Context
Internal Capabilities of Country Road
The major internal capabilities and core competencies of Country Road Company
includes the following:
Brand image is one of the main aspects which acts as the competitive advantage of the
organization as the website of the company is unique and relatively modern.
The display window in front of the company Country Road has numerous vital functions
which will be beneficial in improving the different activities.
Capability of the
Resources
Organizational
Related
Functions
Innovative
Resources
Brand Image
and reputation
Human
Resource
Related
Activities
Value Yes Yes Yes Yes
Rarity Yes Yes Yes Yes

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Costly to Imitate Yes Yes No Yes
Organized in
nature to
Capture values
Yes Yes Yes No
External Factors (PESTEL)
Political
 There is huge political stability which encourages investors to carry business with
high rate of returns along with low risks of the failure of business.
 However, there is uncertainty in the political level is new taxes and charges which
would affect spending of customers at Country Road negatively (Baker and Saren
2016)
Economic
 The low level of unemployment and high standard of living has positively influenced
the business of Country Road
Social
 The increased preference for the different high-quality products provides Country
Road opportunity to focus on satisfaction of customers
Technological
 There is international level of competitiveness in Australian retail industry on usage
of internet and e-retailing which has helped Country Road to expand (Baker and
Saren 2016)

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Legal
 There are different legal compliances along with regulations on employees that can
affect growth of Country Road negatively
Environmental
 There are changes in climate in Australian economy which affects growth of Country
Road negatively
E-Commerce Issues
As the company Country Road Company delivers on Omnichannel Customer Service,
however in the present scenario of complex business environment, the customers can contact
the company at any touch-points. However, in case of Country Road, the main issue can rise
when the business is not moving towards the omnichannel strategy related to retailing and it
will be falling behind the other competitors present in the market. Moreover, Country Road
Company is unable to switch between various channels and the customers are forced to repeat
themselves in an ineffective manner. Furthermore, the company is unable to serve the
requests of customers effectively as there is no access to the customers interactions history as
well.
Recommendations
From the above, it can be recommended that there are different aspects which can be
followed by Country Road to gain competitive advantage in the market which are as follows:
 Firstly, the company needs to improve the e-commerce business channel of serving
the needs of the customers with implementation of sophisticated technology which
will keep track of the different needs of the customers

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 In order to improve the competitive advantage in the market, Country Road needs to
focus on opportunities which will play a major role in improving their position in the
different markets through generating brand loyalty among customers

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References
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capabilities and firm performance: The moderating role of market orientation, marketing
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