1.0 INTRODUCTIONThe following report describes and analyses Myer's generic and distinctive marketing strategies, as well as providing accurate industry, competitor, market, and SWOT analysis'. Evaluation of Myers' marketing strategy is conducted, thus analyzing the strengths and weaknesses of the strategy. Finally the report recommends possible future courses of actions available to Myer, in order to improve profits and prevent mistakes in the future.2.0 BACKGROUND OF MYERMyer was established in Melbourne in 1900 and is now the largest retail businesses in Australia. The founder, Mr. Sidney Myer, was a Russian immigrant who opened the first store and ended up creating one of the larg ...view middle of the document...
Today Myer is a Coles Myer Ltd company, therefore there are many sister businesses of Myer such as Bi-Lo, Coles, Liquorland, Target, Megamart, Kmart e.t.c.3.0 CONTEXT FOR STRATEGY3.1 THE INDUSTRY ANALYSISMyer is in the department store/large retailer industry, an industry that has very high levels of competition. Although this industry is extremely competitive and growing at a fast pace in Australia, it is still not as large as the department store industry elsewhere in the world, such as the USA. This is partly due to the fact that there are boundaries in this industry, particularly in Australia, as there are few retail stores that can classify themselves as large department retail stores. Myer is a very competitive and key participant in this industry, as it is both a producer and a seller. The large retailer industry can be very volatile due to the impact the environment has on its participants.Due to the introduction of the GST in year 2000, retail turnover has been increased and there has been a sharp sales slump in the retail sector (Inside Retailing, 2001). According to the estimation of ARA, total sales were up 5%; however there had been a drop in department store sales of 3% for the seven months prior to July on the previous corresponding period. The Australian Bureau of Statistics (ABS) also estimated that department store turnover was up 27.8%, or approximately $1 billion.(Insider Retailing, 2001)3.1.1 PORTER'S FIVE FORCES ANALYSISThreat of new entrants:There are obvious barriers for the industry in terms of economies of scale, capital requirements, and government policy. Economic scale comes into play as large companies can decrease of units as volumes rise. For instance, large retail stores may incur cost savings by buying products in great quantity however; smaller stores do not have the ability to do so.Government policy could also be another entry barrier; such as the introduction of a new tax system, which could to a great extent influence the industry. E.g. GST. In addition to this, the establishing of a new brand becomes a vital aspect for success in this industry, due to the fact that entry into this industry is difficult due to the size and scope of existing brand competition.The most likely new entrants to the industry are from companies, which have been well established in other businesses areas. In many cases it would be financially impossible to enter into a competitive industry with little seed capital and for many organizations large resource investment requirements deter them from entering. This is especially true for a large department store such like Myer, which needs to have a number of different business sectors, such as: administration, marketing, finance etc. Therefore, entry barriers are considered to be high.Bargaining power of suppliersLarge retailers or department stores could choose where to get products from many suppliers; therefore, suppliers have less power. Retailers are gaining more power in...
