David Jones

2670 Words Feb 8th, 2013 11 Pages
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
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Online shopping is a much more convenient and cheaper alternative. As the phenomenon become a large part of today’s society, Target decreased the effect by also introducing Target online which customers to continue to choose Target to purchase their goods even if they prefer to shop online.
As one of Targets key competitive strategies is cost leadership they must have high control and emphasise on expenses and costs within the business. For Target to provide greater quality in their products for a lower price they must focus on cost reduction and lower each cost or expense where possible. This is where product differentiation also plays a key factor. Target is able to do so by developing their own lines of products which has many advantages. Firstly by doing so they can ensure a low price but high quality as the costs of their own lines would be much less as they are produced within Westfarmers rather than purchasing others lines/brands. These products are also exclusively available at Target providing them product differentiation as if customers are extremely happy with their purchase they are only able to purchase it from Target creating a regular customer base. These products also allow a much higher profit margin due to the lower cost in production and also allow more flexibility in prices as they can ensure they have the lower prices than competitors but still make a substantial profit.
For Target to have an edge over other competitors

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