1. Macro Economic Factors And Industry Analysis (company Name: MYER, Australian Department Store) – Assignment Example
Myer Holdings Limited s Myer Holdings Limited is an Australian firm that deals in a wide range of products including cosmetics and fragrance, apparel, homeware, electrical goods, toys, footwear, handbags, and general merchandise. The company has been in existence for over a century, and has its headquarters in Melbourne, Victoria (Myer, 2015). There are various macro-economic factors that affect the firm’s performance. A SWOT analysis would be done to evaluate the firm’s economic environment.
Strengths: Myer Holdings targets extra income earners and attempt to acquire various styles for the youthful shoppers as well as the market. The loyalty card has enabled the firm to retain existing customers and attract new ones. The member benefits also attract customers. This enabled the firm record revenues of A$3,143 million (about $2,891.7 million) as of July 2014.The appeals of the company is aimed at attracting a youthful demographic in the reasonable income bracket. The firm’s clients are both whole and retail shoppers. The next strength is that Myer is founded on four pillars, including opening new stores, comparative growth in sales, increase in gross margin, and reducing start-up business costs. The numerous stores (67) that provide more that eleven product categories gives the firm competitive advantage based product differentiation.
Weaknesses: Has experienced underinvestment in the recent years. The high rate of unemployment has restricted the industry’s growth. As cited in the TransWorld News (2012), in the early 2000s the labor market was very weak, thus an upturn in the financial system.
Opportunities: Increase accessibility in order to have double the number of customers and to expand the store base to about 100 sites nationally (TransWorld News, 2012). This is expected to increase the company revenues from $2,891.7 million in 2014 to 3.324.4 million by 2020. The other opportunity is to come up with specialty stores. Lastly, to come up with constant innovative products for the fashion industry is very dynamic.
Threats: The major competitors, such as Wesfarmers, Woolworths, David Jones (DJ), as well as other several department stores and specialty wholesalers and retailers are a threat to Myer Holdings.
Myer. 2015. Myer. Retrieved March 12, 2015, from http://www.myer.com.au/
TransWorld News. 2012. Myer Holdings Limited: Company Profile and SWOT Analysis. Retrieved March 12, 2015, from http://www.transworldnews.com/1005350/c1/myer-holdings-limited-company-profile-and-swot-analysis-new-company-profile-report#sthash.Mw4495eF.dpuf