CPA GSL MYER
MYER Case Study
Business life cycle analysis
UAE Market
As information given, the UAE department store industry is in growth phase. Few large players are currently in presence and at the same time, it is very attractive industry for external players as their profitability deemed to be higher than ‘average’ profitable level. Therefore, rivalry among existing competitors is expected to be low as market is rapidly growing and there will be enough room for others to penetrate. However, for external players who are interested to enter into department store industry in UAE, this is not a simple decision can be made. This is because cash is short as funds are needed for investment to cater for high growth rate and expansion plans.
Australian Market
As information given, the Australian department store industry is in decline. Few large players dominate the industry and new competitors are hard to enter. It is reasonably expected that even large players are no longer to yield sufficient return. Myer Ltd has focused on domestic market in the past few years through market penetration strategy, but once Australian department store industry is saturated and the current strategy seems to be exhausted, Myer Ltd must consider its strategic option for the future growth.
Porter’s 5 forces analysis (industry profitability analysis) UAE Industry
Threat of new entrants: Low
Threat of new entrants in the Dubai department store industry is low to medium. There are issues to be considered when Myer wants to expand into this region. Firstly, Department store industry requires large capital investment to set up a business as it provides well-established shopping opportunities to its customers. Also, it needs to ensure distributing their goods and services through established distribution channels, however it could be already locked by existing competitors. These issues make the entry barriers high for Myer to enter into the market.
Bargaining power of suppliers:
Business life cycle analysis
UAE Market
As information given, the UAE department store industry is in growth phase. Few large players are currently in presence and at the same time, it is very attractive industry for external players as their profitability deemed to be higher than ‘average’ profitable level. Therefore, rivalry among existing competitors is expected to be low as market is rapidly growing and there will be enough room for others to penetrate. However, for external players who are interested to enter into department store industry in UAE, this is not a simple decision can be made. This is because cash is short as funds are needed for investment to cater for high growth rate and expansion plans.
Australian Market
As information given, the Australian department store industry is in decline. Few large players dominate the industry and new competitors are hard to enter. It is reasonably expected that even large players are no longer to yield sufficient return. Myer Ltd has focused on domestic market in the past few years through market penetration strategy, but once Australian department store industry is saturated and the current strategy seems to be exhausted, Myer Ltd must consider its strategic option for the future growth.
Porter’s 5 forces analysis (industry profitability analysis) UAE Industry
Threat of new entrants: Low
Threat of new entrants in the Dubai department store industry is low to medium. There are issues to be considered when Myer wants to expand into this region. Firstly, Department store industry requires large capital investment to set up a business as it provides well-established shopping opportunities to its customers. Also, it needs to ensure distributing their goods and services through established distribution channels, however it could be already locked by existing competitors. These issues make the entry barriers high for Myer to enter into the market.
Bargaining power of suppliers: