Journal of Economics & Management Strategy - Myassignmenthelp.Com

Question: Discuss about the Journal of Economics Management Strategy. Answer: Introduction The retail sector is growing rapidly in todays business world and it has become more complex with the emergence of thousands of stores, micro-suits, micro-apps and commercial networks that are covering multiple geographies(Kim, Allaway and Ellinger 2015). In order to create frequently refreshed products, the local markets have developed as a way to further accurately tailored merchandise offerings to the market demand. This report will shed light on one of the notable Australian retail company, the Myer Holdings Limited. It will focus on its external environmental factors including the political, competitive, economic and technological trends that is influencing the organization and its marketing strategies and the opportunities and threats that is there in the current market for the organization. Discussion Background of the Organization Myer is one of the famous Australian retail company that is fulfilling its consumers needs through various different retail outlets. It was founded in the year 1900 in Victoria, Australia and the founder of this company is Sidney Myer (Myer 2018). After it prospered, the second Myer store opened in the year 1908. It is serving throughout Australia since its emergence. The company is long been regarded as the largest departmental store of Australia by the store count and revenue. The main target markets of Myer are the high LSM (Living Standard Measure) groups or the high-income earners. However, the company is also planning to extend its target markets and adding to it the black middle class and the lower LSM as in the near future, they too will buy clothes and foods from the stores. It retails a large range of products, starting from mens, womens and childrens clothing; footwear; cosmetics; accessories; home wares; furniture; books; toys; travel goods; bedding; electrical and food a nd confectionaries. Theoretical Framework Marketing environment is the amalgamation of both the external and the internal forces and factors that could affect an organizations potential to establish its relationship with the customers and serve them to their best (Dawson 2014). The external environment plays a very important role in shaping up the future of an entire organization as well as that of the individual business. It comprises of the various factors that are external to the business of the organization, upon which there is a little or no control of the market. It is very essential for planning the future of the business, understanding the customers, tapping the market trends, tapping the future opportunities and understanding the competitors. A better understanding of these elements allows the marketers to develop their business to a greater extent. The relevant external environments that are to be analyzed are the micro and the macro environments. The micro environment constitutes the suppliers, market intermediari es, partners, customers, competitors, and the public (Palmer 2012). On the other hand, the macro environment constitutes the demographic, economic, physical, technological, political-legal, and the socio-cultural environment. External environmental analysis In order to analyze the external environment of the Myer, the micro environmental analysis is considered, i.e. its competitors, economic growth and stability, political trends, legal and regulatory issues, technology and the socio-cultural trends. Competitors:Competition among the companies is intense in Australia. Different firms compete for same customers with very little or no switching costs. Here, the competition is dependent on differentiation. However, the main rivalry company of Myer is the David Jones (Akbar and Ahsan 2014). Economic growth and stability:Economic factors such as high rate of unemployment and recession have a strong effect on the businesss financial performance (Fairlie 2013). The global financial crisis has also declined the condition of almost every organization. However, the Australian retail industry has maintained more stability than in other parts of the world. Political trends: The political environment of every country is related with the organizations performance and the retail companies are influenced some or the other way by the political climate. The political changes and disturbance discourages the investors and the business from entering into the market because of the risk of business failure and low rates of return. Legal and regulatory issues- Recruitment, employee management, requirements of food licensing and taxation policies are the major aspects of legal framework for the retail industry. The qualities of the food items that are available in the stores must be in accordance to the regulation of the country. In addition, opening of retail outlets must get approval from the governmental authority (Scollo, Bayly and Wakefield, 2015). Technology: The use of RFID in the company has helped it in efficient inventory management and in keeping stocks available for the customers. It has also made the use of SOA (Service Oriented Architecture) in its operations. It is seen that the consumers are not agreeable to every type of technology. Therefore, the industry needs to link its technology in accordance to the customer preference and needs. Socio-cultural trends:The consumers in modern days are increasingly wanting the retail shopping experience which includes the availability of large range of products with fair prices (Schiffman et al. 2013). There are times when the encouragements for buying the products are supplied by the family members and peer of the consumers of Myer(Christopher 2016).. In addition, the social needs are also some sense of belonging, which the consumers of Myer develop interest of buying, also, the safety need is for the reliability and the security of the customers. Summary of opportunities and threats The opportunities and threats include: Opportunities: Innovation Emerging of market and the expansion to abroad The emergence of products and services The foreign players are dominating the retail sectors. Hence, there is an opportunity for Myer to be tied up with these players. Online service Acquisitions Threats: Competition (David Jones) Economic slowdown Price war Relatively cheaper technology External changes such as taxes, politics and government Changes in consumers preferences Trouble to target every segments of the society Conclusion The above external environmental analysis of Myer has helped in identifying the major barriers in the national, economic and political sectors. The above mentioned external factors are influencing the retail market in every way and it will continue to have an impact on it in the future as well. In conclusion, it can be said that in order to maintain its current position, the company must concern its external surroundings. References: Akbar, S. and Ahsan, K., 2014. Analysis of corporate social disclosure practices of Australian retail firms.International Journal of Managerial and Financial Accounting,6(4), pp.375-396. Christopher, M., 2016.Logistics supply chain management. Pearson UK. 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