Myer's External Environment Analysis

2. External Environment Analysis
According to Michael H. Morris (2011), an external environment analysis encompasses eight important domains outlined below.
2.1 Technological Environment
Technology is destroying jobs and creating new jobs at the same time. Technological change is a leading source of economic growth. Myer has many opportunities to take advantage of new and emerging technologies. The way people in Australia understand technology has deep implications for the progress and use of technologies. Technology is dynamic and interconnected. Data analytics will solve a lot of problems (Robert C Williamson, 2015). It will also transform a lot of technologies.
Bricks and mortar retail companies, which Myer traditionally is, can embrace

It has a strong brand presence in Australia. Myer has no international presence. Foreign players dominate the retail sector globally. Myer is facing a lot of competition from online shopping. It is expected to get worse when Amazon launches in Australia. A lot of retailers including a local Topshop franchise has collapsed in Australia (Bartholomeusz, 2017). Myer’s rival David Jones has seen the worst quarterly sales since 2014. It is expected that retailers in Australia will be more affected by Amazon’s fast delivery system than its cheap prices. All these factors can highly impact sales and may negatively impact Myer company’s competitive position in which for Myer is currently operating in very high competition where there are new entrants to the

Australia is in a good place geographically. Myer can try targeting the Asian countries. The demand for fashion and luxury items is expected to increase in the next few years. Consumer demand is changing. In Australia, there is now less demand for footwear and household goods, and more for fresh food. It is very important to understand changing consumer behaviour.
3.2 Main Threats
Economic growth has slowed down in Australia because of which consumers have cut down spending. Other factors threatening a decrease in consumer spending is the rising electricity pricing. Amazon will be launching in Australia soon. Amazon will have an edge over Myer as it is known for fast and reliable delivery and affordable prices. Amazon, and other international retailers, has economies of scales which makes it easier for them to lower prices. Mobile commerce will provide people with more options so competition will increase a lot.
While the growth in Asia would mean more customers, it would also mean more competition from Asia in the coming years. While expanding into other countries is a good idea, it has its own challenges. Other countries have different laws and regulations related to trade practices, consumer rights, and employment laws. Myer must understand