Case Scenario
In April 2014, Australian retail industry (especially for department chain store) is undergoing an earthquake when the South African retailer Woolworths Holdings Limited (JSE Code: WHL) announced A$2.15 billion acquisition offer to one of the largest Australian department chain store company, David Jones Limited (ASX Code: DJS).
On Wed (9th April 2014), David Jones board recommends this $4.00 cash per share offer made by Woolworths. This action has immediately received significant attention from the public.
Note: Woolworths Holdings Limited (JSE: WHL) is not Woolworths Limited (ASX Code: WOW).
Assignment Task
You are now required to use knowledge learned from MGT306 to analyse this real world case in accordance with following instructions:
1. From the vision, mission and core values of WHL and DJS to analyse whether or not this acquisition will fit both of these two companies;
2. Analyse both WHL's and DJS's current competitive strategies (i.e., low-cost provider, broad differentiation, market niche, and best-cost provider, etc.)
3. Use five force model to analyse why WHL want to acquire DJS? What are the competitive advantages for this acquisition?
4. Use SWOT model to analyse if the acquisition is successful, will it strengthen WHL's competitiveness? If yes, will this competitiveness be achieved in Australia or globally?
5. Analyse this South African retailer's international marketing strategies. Why does it choose acquisition strategy?
6. Analyse why WHL choose now to acquire DJS. Is it a good timing for it to implement this acquisition strategy?
7. Analyse if this acquisition is successful, what would be the defensive strategies for their major local market competitors (i.e., Myer, Kmart, etc.) and global rivals (e.g., Inditex SA, Hennes & Mauritz AB)?
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