Dwadaw

This case report contains data and analysis regarding consumer perceptions of Dick Smith compared to its main competitors (JB Hi-Fi and The Good Guys) as well as consumer spending habits. Such data is decomposed into several clearer functions in order to further analyze Dick Smith's position in the market which reveals any opportunities for growth as well as identifying its position in the electronic retailer industry. This report presents detailed analysis regarding Dick Smith’s market share, penetration and share of wallet in addition to consumer’s perceptions of service, price and assortment of products across the segment.

First of all, market share is used to quickly determine how Dick Smith’s sales hold up to its competitors, helping managers to evaluate both primary and selective demand in their market. Market share defines the percentage of an industry or market’s total sales that is earned by a company which shows how much of the electronic sales industry does Dick Smith control, calculated using the company’s sales divided by the total sales in the industry over a period. Although market share is a good indicator of how much the company controls the market, it should not be the only main focus of the firm as a high market share may still incur losses as a whole due to other factors such as costs or pricing.

Another factor that is taken into account is the penetration of the company in the market, simply defined as the number of consumers that a firm has attracted to purchase from them out of the whole market segment. This is calculated by dividing the number of consumers that purchased from Dick Smith divided by the overall number of consumers in the electronic retailer industry. Looking at the penetration dictates how strong Dick Smith influences buyers in the market. This metric looks at whether Dick Smith should seek sales growth through existing consumers or by expanding the total segment size.

The third metric used in this report is Dick Smith’s...