Decision making and problem solving
Ahmad571
CopyofMyerPresentation.pptxHC1062 - Group M1-06
AUK3021 Muhammad Ahmad
DY31477 Gul Raiz
VSS31925 Bilal Amjad
ES3030 Nicola Eccheli
Management Dilemma: Loss of sales
20% decrease in annual revenue since 2009 ;
$486 million loss in 2018;
Myer has been experiencing loss in annual revenue and sales overtime.
Since 2009 decrease in annual revenue of 20%.
Biggest loss in 2018
Management Dilemma: Loss of sales contd.
Source : Myer (2018)
Research
For this research, review , analysis and interpretation of secondary data was used.
The main source of data are online articles and journals.
Research Questions
Whilst the assignment covers a broad number of questions, the presentation will cover the following:
What caused the loss in sales?
Why has management refrained from making changes when sales were falling?
Possible Causes?
The average person prefers to buy cheap clothes, regardless of the brand (Mitchell, S, 2019)
People are starting to care less about brand names, and they tend to buy cheap clothing, from example from kmart
Possible Causes? contd.
Decreasing foot traffic in malls (Mitchell, S.,2019)
Less foot traffic has been observed, people do not walk in malls as much anymore
Possible Causes? (contd.)
Delay in embracing online shopping
There is a shift towards online shopping, people nowadays tend to walk into retail shops but then buy online. Often times from the competition
People may also skip this altogether and just choose and buy directly online, skipping the trip to the mall.
Myer jumped in late, and it's now struggling to find its place in online retailing.
Possible Causes? (contd.)
CEO and Board of Directors were reluctant in embracing new technologies and opportunities.
Possible Solutions
Management should start exploring e-commerce options
Follow David Jones’s lower price strategy
Decrease the size and amount of stores in order to lower costs (if e-commerce is embraced)
1st point, perhaps the use of Amazon will increase the online reach.
2nd point, DJ is offering sales and decreasing prices, so perhaps Myer should do the same to compete in the market
3rd point, If e--commerce is embraced, myer can decrease size and amount of stores in order to decrease total costs
Suggestions
E-Business availability should be embraced and pursued
Benchmark against successful competitors in order to increase online market share
Myer should focus on cutting costs
Product range should differ from competitors to gain competitive advantage
Customer service should be enhanced
Myer should consider utilizing Amazon and other services in order to reach a wider market
Comparison with competition might help in increasing efficiency and effectiveness in online retailing
Reference List
Myer (2018). Myer Annual Report 2018. [online] p.9. [Accessed 8 Sep 2019]<http://investor.myer.com.au/FormBuilder/_Resource/_module/dGngnzELxUikQxL5gb1cgA/file/Myer_Annual_Report_2018.pdf>
Ilanbey, S. and Hatch, P. March 9, 2019. Myer and David Jones rush to reinvent themselves before it's too late., The Sydney Morning Herald. [Accessed 8 Sep 2019], <https://www.smh.com.au/business/companies/myer-and-david-jones-rush-to-reinvent-themselves-before-it-s-too-late-20190307-p512fk.html>
Mitchell, S., 23 Jan 2019. Retail foot traffic falls again in January following worst December on record. [online] Australian Financial Review. Available at: <https://www.afr.com/companies/retail/retail-foot-traffic-falls-again-in-january-following-worst-december-on-record-20190122-h1acvh> [Accessed 11 Sep. 2019].
Reference List (contd.)
Murphy, J., 20 Jan 2018. The slow, painful death of Myer and DJs. [online] NewsComAu. Available at: <https://www.news.com.au/news/the-slow-painful-death-of-myer-and-djs/news-story/7319b35c5c04c07975bd404a018feb0d> [Accessed 9 Sep. 2019].
Fernyhough, J., 1 Oct 2017. Myer quietly launches its answer to Amazon Marketplace. [online] The New Daily. Available at: <https://thenewdaily.com.au/money/2017/12/01/myer-quietly-launches-new-answer-amazon-marketplace/> [Accessed 7 Sep. 2019].
