Forecast Assumptions
2. Prospective Analysis
Explanation of Forecast Assumptions
Myer decided to change their business strategy due to the poor performance in the prior years (appendix A). First, they are planning to focus on customer satisfaction by investing more than $600 million for capital and the implementation costs of the new strategy (Myer Holdings Limited 2015). Second, they are expanding the range of their brands and focusing on the big and well-known names such as Calvin Klein and Nine West to achieve the new strategy (Low 2016). Third, they are planning to invest more in omni-channel capability and they already took the first step when they joined eBay this year (Mitchell 2016). Finally, they are planning to expand their market internationally to …show more content…
Management has to be creative when designing the strategies and be more optimistic for a sustainable firm.
Myer should improve Myer One loyalty program, because the program has more than 5 million members which is a huge number they can easily benefit from these customers by keeping them loyal, satisfied and giving them more benefits which in return can benefit the business. As a result of keeping the customers loyal, the bargaining power will be low. Myer can generate a huge amount of data from their loyalty program, which would give them insight into who are the real customers, what type of brands they are buying more, and what they really want. And then they can continue expanding the range of their brands based on that and focus on the more profitable brand names to attract customers back. In addition, they can use surveys to ask their customers about their favourite international brands that they can bring to …show more content…
So for Myer’s best interest they have to keep their brands visible and fresh, focus on new well-known brands. Myer made a good decision when they acquired 25 per cent stake in the Topshop Australian franchise last year. So in order to be more profitable, they should roll out Topshop products in Myer stores, which will improve their target management and attract more young shoppers. In the other hand, Myer should make more improvement to their long-suffering
Explanation of Forecast Assumptions
Myer decided to change their business strategy due to the poor performance in the prior years (appendix A). First, they are planning to focus on customer satisfaction by investing more than $600 million for capital and the implementation costs of the new strategy (Myer Holdings Limited 2015). Second, they are expanding the range of their brands and focusing on the big and well-known names such as Calvin Klein and Nine West to achieve the new strategy (Low 2016). Third, they are planning to invest more in omni-channel capability and they already took the first step when they joined eBay this year (Mitchell 2016). Finally, they are planning to expand their market internationally to …show more content…
Management has to be creative when designing the strategies and be more optimistic for a sustainable firm.
Myer should improve Myer One loyalty program, because the program has more than 5 million members which is a huge number they can easily benefit from these customers by keeping them loyal, satisfied and giving them more benefits which in return can benefit the business. As a result of keeping the customers loyal, the bargaining power will be low. Myer can generate a huge amount of data from their loyalty program, which would give them insight into who are the real customers, what type of brands they are buying more, and what they really want. And then they can continue expanding the range of their brands based on that and focus on the more profitable brand names to attract customers back. In addition, they can use surveys to ask their customers about their favourite international brands that they can bring to …show more content…
So for Myer’s best interest they have to keep their brands visible and fresh, focus on new well-known brands. Myer made a good decision when they acquired 25 per cent stake in the Topshop Australian franchise last year. So in order to be more profitable, they should roll out Topshop products in Myer stores, which will improve their target management and attract more young shoppers. In the other hand, Myer should make more improvement to their long-suffering