Strategic Review of Australian Department Store David Jones

2617 Words Jan 21st, 2012 11 Pages
David Jones Limited (DJS) is an Australian retailer tracing its origins back to 1838 when it first opened in Sydney to sell “the best and most exclusive goods” (DJS, 31 Oct. 2009). It has since expanded to become a national retail chain comprising of nearly 40 premium department stores. The subject of this analysis is a strategic business unit (SBU) that is playing an increasingly important role in the company’s future growth strategy; namely the provision of financial services. As the result of a strategic alliance with American Express (AMEX), DJS launched the David Jones American Express (DJA) card in 2008 (ASX Media Release, 20 February 2008). To effectively analyse the value proposition of this SBU and product it is important to …show more content…
| Customers | DJS retail: “DJ’s core customer comprises of 3 generations of women; daughter, mother, grandmother, with a household income of >$75,000 p.a.” (Macquarie Australia Conference, 2009, Mark McInnes). As the DJA credit card is a product development strategy, of supplying new products to existing markets, the customers of DJA are essentially the same as the current DJS customers. | Collaborators | Strategic alliance with AMEX in the provision of the DJA credit card. International alliances with other retail stores when the DJA card is used within their stores (eg. Harrods, Harvey Nichols, etc.). Other local ‘bonus partners’ in the DJA reward program (eg. Vintage Cellars). | Competitors | DJs competitive environment is summarised using the following adaptation of…

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