The paper 'Change Intervention at David Jones" is a perfect example of a management case study. About 2000 years ago, a Greek philosopher named Heraclitus said that the only thing constant in this world is change itself. This claim is most relevant to the modern business environment, which is changing day and night. This means for firms to thrive in these environments, they must change and adapt. Take for instance eCommerce. A few years ago, e-commerce was only a preserve of a few but today it is a major shopping and distribution channel.
Although Australia was slow in taking up e-commerce, it is catching up gradually. As of 2010, 6% of all retail transactions in Australia were made online compared to 11% in the US and 8% in the UK. To ease the transition to online shopping, David Jones, one of Australia’ s oldest supermarket stores, introduced ‘ click & pick’ service as a change initiative in response to market changes. To learn more about this change process at DJs, I interviewed David Robinson who oversaw the Omni Channel and Integration program that introduced click and collects service but currently holds a different position in the firm.
This report discusses the process in brief and links it to change theories learned in this unit. Description David Jones operates 36 stores across Australia. It targets the fashion all stocking apparel, electronics, footwear, cosmetics, furnishing, gifts and consultations services for interior design. In August 2013, the firm introduced ‘ click and collect’ service that allows shoppers to buy and pay online and pick the purchased items at any of the 36 stores the following day. The impact of this service was almost instantaneous with sales in the second quarter of 2014 growing by 2.1% and online sales growing phenomenally by 150%.
There is a need to maintain this momentum and integrate this service into DJs core operations. Type of change DJs changed in response to market developments. Australians have grown more receptive to online shopping and click and pick service was directed towards boosting online sales from the then 3%. This service aimed at diversifying the firms retailing channels. Furthermore, competing players such as Coles, Dan Murphy’ s and Woolworths had already introduced similar services. Change rationale The change in the case of DJs was an intervention to address a problem.
The problem at DJs was declining online sales. This was in spite of reports showing growth in e-commerce in Australia. Foreign-based online sites such as e-Bay and Amazon and foreign players were attracting Australian shoppers than local sites. To compete effectively with these foreign players, Robinson says that there was a need to take a wholesome approach to the problem and identify what the firm needed to achieve. The change aimed among other things “ increasing the options that consumers can access DJs products and services, increase convenience, integrate firm operations for harmonized services, grow sales, upgrade technology and increase efficiency. ” This required analysing the factors that drove Australians to shop in foreign websites where they incur an additional $50 shipping fee instead of doing it locally at a lower shipping fee.
“ We realized that while shipping fee was high in foreign websites, the lower prices compensated for that while delivery time was largely similar to the local deliveries, ” said Robinson.