David Jones
Executive Summary
In this report I discuss the comparison of competitive strategies between the two major departmental stores in Australia being David Jones and Target and how they differ from each other. I also discuss the current issues that are faced such as Global Financial Crisis that has had much impact on both stores as well as future threats such as online shopping which is believed to be the latest trend is shopping which has already affected the stores but could make competition even tougher in the near future for both stores.
Introduction
Target Stores is a major retail store that first opened in 1925 in Geelong as Lindsay’s Emporium selling from clothing to household goods, appliances, sporting goods, toys etc. From that date opened a few other stores around the country until really beginning to expand in 1973 when they become known as Target with now 305 stores across Australia. The aim of Target stores is to provide Australians with great quality at an affordable price.
David Jones on the other hand is aimed at a higher class of people as their products come across more expensive than Target. David Jones stores began in 1838 but only currently have 37 stores across Australia
Both Target and David Jones face competition within the retail market with Targets main competitor being K-Mart and Big- W while David Jones’ main competitor is Myer. Both stores have strengths and weaknesses and both hold different competitive strategies as Target shows a focus on cost leadership while David Jones follows a differentiation leadership.
The rest of the report will look into strengths, weaknesses and the different competitive strategies with more detail.
Finding Analysis
Target
As previously mentioned Target first opened in 1925 but did not become Target Australia Pty Ltd until 1973 when the opportunity for growth was recognised. From there Target expanded to Target Home, Target Country and Target Baby which all are
In this report I discuss the comparison of competitive strategies between the two major departmental stores in Australia being David Jones and Target and how they differ from each other. I also discuss the current issues that are faced such as Global Financial Crisis that has had much impact on both stores as well as future threats such as online shopping which is believed to be the latest trend is shopping which has already affected the stores but could make competition even tougher in the near future for both stores.
Introduction
Target Stores is a major retail store that first opened in 1925 in Geelong as Lindsay’s Emporium selling from clothing to household goods, appliances, sporting goods, toys etc. From that date opened a few other stores around the country until really beginning to expand in 1973 when they become known as Target with now 305 stores across Australia. The aim of Target stores is to provide Australians with great quality at an affordable price.
David Jones on the other hand is aimed at a higher class of people as their products come across more expensive than Target. David Jones stores began in 1838 but only currently have 37 stores across Australia
Both Target and David Jones face competition within the retail market with Targets main competitor being K-Mart and Big- W while David Jones’ main competitor is Myer. Both stores have strengths and weaknesses and both hold different competitive strategies as Target shows a focus on cost leadership while David Jones follows a differentiation leadership.
The rest of the report will look into strengths, weaknesses and the different competitive strategies with more detail.
Finding Analysis
Target
As previously mentioned Target first opened in 1925 but did not become Target Australia Pty Ltd until 1973 when the opportunity for growth was recognised. From there Target expanded to Target Home, Target Country and Target Baby which all are
References: David Jones Ltd. (2011). 2010-2011 Annual report. Retrieved from www.davidjones.com.au/For-Investors/Presentations-and-Reports-2011/Annual-Reports-2011 Goddard A, Tillmann K Hoque, Z. (2003) Strategic Management Accounting: Concepts, Processes and Issue, (2nd Ed), Sydney, Pearson Education Australia.