Ansoff Matrix Of Myer

Myer is a mid-range to upscale Australian department store chain. They house a variety of products, including men’s, women’s and children’s footwear and clothing as well as cosmetics and fragrance and general electronics and other home wares.

The biggest competitor of Myer is David Jones. Compare the physical availability of two retailers, Myer as the largest department store in Australia, it has 67 retail stores chain across Australia and four distribution centres, which David Jones only have 35 store across the country and 2 warehouses (David Jones, 2017). Furthermore, compare with David Jones, most of the the brands sold in Myer are local brans and they tare target to mid to up market. However, David Jones is target to up market, most of the brand sold in David Jones are unique international brands, which also makes products sold in David Jones are relatively more expensive (Avenell, 2009).

The Myer’s team value their members as their most important resource and consists of 78.8% female team members. The team is committed to offer a supportive and challenging rewarding workplace that enables workers to contribute and develop their full potential. For attraction and retention, Myer’s offers rewards such as team member benefits which include store product discounts, workplace flexibility and a variety of unpaid and paid leave options. With a total of 12,500 team members, Myer’s has a retention rate of 74.4%.

Ansoff’s Matrix is a useful tool for analysing the approach to the marketing strategy of a business. The matrix puts markets against products and will suggest one of four marketing strategies for the business to follow.

Portray the competitive strategy of the (competing) firms using the grid of “strategic target” and “source of competitive advantage”.

Myer Holdings Limited (MYR) is a highly reputable Australian department store with a network of 67 stores in prime locations and upcoming anticipated opening of 5 stores in next 2 years. For the broader consumer appeal Myer offers 2400 brands sourced from 800 suppliers globally. Myers also runs a loyalty program. The myer community includes 13000 people acting in full interest and proving to be the strength for the company. The strategic plans for 2015 according to the chairman Paul MCclintok and the CEO Bernie Brookes see this as a period of opprtunities and will keep on putting resources into the imperative zones of omni-channel, community, Exclusive Brands, client administration development, and reviving the Myer brand, to

1, What are the strategic options for product and/or market development for the organisation? – Ansoff’s product-matrix

The financial data will support the strategy as the ratios and numbers show that Macy’s has resources and capital available for the implementation. Evaluation of external and internal factors positively presenting an opportunity for Macy’s to use designed strategy to and keep competitiveness in the industry. Summarizing Macy’s is a well-established organization with over 150 successful years in business that still has an ability to compete with leaders in the industry if the right

A company needs to create a series of programs to differentiate their product from those from its competitors and to appropriately price the product to achieve the maximum demand, in order to set up the dynamics of its competitive strategy (David, 2007). The competitive strategy of a company is also expected to offer better products or services to its customers, at a reasonable cost. Due to the mass influence of the external environmental on the customers’ preference, it is vital for the company to develop an available competitive strategy to be able to solve a series of problems, and ultimately to improve the company’s performance. Those problems include: how to differentiate its products or service from competitors, how to create market segments to maximize demands, and how to offer a wider range of products or services to better meet the customers’ needs at more acceptable costs (David, 2007).

In 1985 Michael Porter surmised that a market can be subjected into different strategies, thus, three variations of competitive advantage were born. The differentiation strategy is the focus for the purpose of this paper. Furthermore, the differentiation strategy in its most exposed form is a strategy that places prominence toward the brand name and advantage is the prestige that follows. This type of angle draws in a specific high-end consumers which in turn sets its corner of the market apart from its competition. Additionally, in this advantage there is a uniqueness perceived by the consumer, industry wide. The differentiation strategy is distinct in attributes indescribable by price but all the same customers are more than willing to pay a premium for the product or service. Firms that are successful in this advantage are fully equipped with a product development team high in creativity and innovation. Additionally, this strategy is only able to be an advantage if a firm is able to access an unlimited amount of research.

Mariotti & Glackin (2013) provide that development of marketing strategy and competitive advantage is from the "Four P's". The "Four P's" include product, price, promotion, and place. This paper further outlines each of the "Four P's". Mariotti& Glackin (2013) recommend continually referring to the mission statement and vision statement while developing the marketing strategy. This reference helps to build the marketing strategy and form the core competency for the business. The first part of the business plan, the mission and vision statements, are stated below:

Companies often use a (CPM) – Competitive Profile Matrix to better understand their external environment as well as their competition within the industry they operate. The matrix identifies a company’s key competitors and draws a comparison using the industry’s critical success factors. The analysis also reveals a company’s strengths and weaknesses against its competition, making them aware of problematic areas needing improvement and also areas that are doing well and need to be protected (See Appendix F).

To remain competitive a company must consider who their biggest competitors are while considering its own size and position in the industry. The company should develop a strategic advantage over their competitors’

I. Introduction 1. There are several basic approaches to competing successfully and gaining a competitive advantage, but they all involve giving buyers what they perceive as superior value compared to the offerings of rival sellers. 2. This chapter describes the five basic competitive strategy option for building competitive advantage and delivering superior value to customers – which of the five to

“Competitive strategy involves positioning a business to maximize the value of the capabilities that distinguish it from its competitor’s” (Porter 1980:47). A successful business plan requires first and foremost the formation of an appropriate strategy. Through the implementation of a suitable strategy, the company is able to obtain its own industry niche and gain an understanding of its customers (Porter 1985). Whichever strategy is adopted it must be adequately integrated within the firms goals and missions to achieve a competitive advantage (Parker and Helms 1992).