Myer Case Study

Register to read the introduction… As for internal factors, Myer has an experienced management team, world class supply chain and IT system. Investment in team members has improved customer focus and productivity. The success in loyalty program builds Myer’s customer insight. In addition, Myer has larger private label offering and lower entry price points. It has traded at a 12% discount to retail sector. However, the weakness in former store portfolio has caused Myer to reposition several times. Myer’s strengths and improved store portfolio currently position it as a full service but middle market department store. In addition, increase in interest rate has decreased customers’ disposable income, which creates opportunity for middle market. Myer’s cost advantage, stable growth and $400 million investment in transformations bring in sufficient capital, which is helpful for market expansion. Its increasing breadth of offering help win new market with different customer tastes. The improved management capacity, world class supply chain and advanced IT system make it possible to set up shops in wider geographical locations. Consequently, the group targets top 3 quintiles of population, which comprise just less than 80% of national disposable income. The threat comes from changing customer tastes and loss of key staff. Myer increases exclusive brands and private labels to meet different customer tastes. To maintain key staff, Myer applies cash and equity incentives. To confront ever-changing market effectively, Myer adopts different strategies and …show more content…
|Suppliers |Medium |medium |
|Buyers |High |high |

Appendix B

SWOT Analysis of Myer Limited
| Strengths | Weakness | Opportunity | Threat |
|Unique perceived by the customer |No new customer |Market development |Market demand |
|Loyal customers |Less |(expand to 80 stores in the next|( affected by the economic conditions|
|(loyalty program builds) |in-house brands |five years) |worsen) |
|Experienced management and |(just have few own brands) |Niche target markets( |Loss of key staff |
|team(proven and committee |Store portfolio |international class retail |Competitor intentions |
|management team with over 300 years|(larger private label |business) |Global Economics