Information about the Company
Myers Department Store is one of the largest department stores in Australia. The department store was founded in the year 1900 by Sidney Myer. A broad range of products are offered by the company ranging from bedding to furniture to travel goods and clothing. ‘Myers is my store’ is the current tagline that has been adopted by the company.
Brand image and positioning message strategy are used by the owners of the company to build the awareness regarding the brand. The tagline of the company as stated above is catchy and also short, therefore, it fits in the minds of the consumers. The brand image of the company is also improved as the brand promoted itself in the advert copies.
Myer is an international retail class business and it further aims to be world class in this particular sector to provide the wide range of products to the Australian households. The differentiation strategy of the company is focused on satisfying the needs of all the types of the customer groups with its non-food products. The product lines of Myers are about 60000 with around 2400 international and domestic brands. The core product categories of the company are around 11 which include fragrance, beauty, intimate apparel, children’s wear, youth fashion, menswear and women’s wear.
Since, the global financial crisis that had started few years ago, Myers had experienced low market demand,therefore, in order to overcome all such problems, Myers has spent around $400 million in order to rebuild cost structure and also to turnaround the business. Myer One loyalty program that had been designed was one of the most significant changes that had taken place with free registration. Further, special attention has been paid by the management to turnaround the cost structure and the entire supply chain of the company has been transformer over the previous 3 years.
Analysis of Australian Economy
The growth rate o has been around 2.3% since 2011, according to the Australian Bureau of Statistics. Due to the economic crisis that was experienced by the companies in the year 2011, the cash rate which had been set by the reserve bank of Australia had fallen by around 50 basis points, till 2013. However, as announced by the reserve bank of Australia in the year 2013, the inflation rate of the country is relatively low. The inflation rate for the country stands at around 1.6%. The exchange rate does not has shown any obvious changes. In the year 2012, the export of the services and goods had risen by around 0.8%.
According to the latest credit analysis of the economy, Moody’s has predicted that the economy of the country would be growing at a rate of around 2.6% to 3% per year over the next 5 years of the country. The main expansion of the country is going to be driver by the households of the country. Further, it was also noted by the agency that the short term growth would be experienced by the domestic consumption rather than the resource investments and the exports.
The prices of the houses in Australia have been rising and the people of Australia have been highly resilient in order to pay down and reduce the burden of the debt,and also there has been increasing unemployment in the country. Further, the credit is becoming cheap in Australia and the country has been experience earnings growth.
Myers Credit Rating Case Solution
On the other hand, the agencies that provide the ratings to the country are looking at the rising housing prices as one of the most significant factors which is contributing hugely towards the overheating of the Australian real estate market. Moody’s have warned the government of the country that as the monetary policy of the country is set to remain stable for the near future and there is going to be a huge influx of the foreign capital then as a result of this the real estate or the housing market in the country is going to caught up and eventually face a correction.
The economic freedom score of Australia stands at around 81.4. This gives the ranking to the Australian economy of number 4 in the freest economy in the latest 2015 index. This score is around 0.6 points lower as compared to the 2014 score. Australia is ranked on number 4 out of the total 42 countries in the Asian Pacific region. The economic resilience and economic dynamics has been strongly promoted in the country through the country’s strong commitment to the economic freedom. In many of the 20 economy freedoms the economy of Australia has been performing remarkably. .......................
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