The aim of the business strategy analysis is to identify key revenue drivers and risks involved to evaluate the company’s possible turnover at a qualitative level. It will also generate sustainable competitive benefits to make a feasible business, (Palepu & Hayley 2013).
Market Situation:
JB Hi-Fi Limited is one of the largest and fastest growing home entertainment retailers in Australia. This company started a business almost 43 years ago in Melbourne and has expanded over Australia and New Zealand, since inception it has maintained a wide reputation for its cost leadership strategy, which assisted JB Hi-Fi to attract millions of customers. These scores of customers have made JB Hi-Fi superior to the electronic retail company in Australian …show more content…
This way company has been spread over all over the country in order to minimise the risk and created large portfolio of stores this number reached as of 31st December 2016 is 302 in Australia and New Zealand, (JB Hi-Fi half yearly media release in 2017). This retail company also retained and sales huge number of products mix which move over period of times and then diversified again, such as, primarily selling music CDs now move to wide-ranging of home entertainment goods which gradually growing and growing over the times. Additionally, JB Hi-Fi solutions division has been struck a deal to provide IT facilities to business, governments and education sector, remains on pathway to bump into its future ambitious goal of around $500m of revenue yearly. The latest diversification is to introduce digital stores in October 2016 which given company’s extensive sales growth to 9.8% in January 2017 from 7.2% in January 2016, (JB Hi-Fi Half Year Results 2017). Conversely, through its optimistic sales growth over current years JB Hi-Fi managed to overcome the ‘stress test’ with the addition of funds. these business transactions has produced permitting debt to be minimised and letting company growth as well as threat turn into less and …show more content…
In term of upcoming sustainable business profitability, It is hard to say that JB Hi-Fi could maintain this consistent improve sales growth over extended period of times in light of introduction of massive competition in the form of Harvey Norman, Myer, David Jones, Target and Big W. It might be challenging in a highly competitive market to keep this viable status. Additionally, significant management modification and implementation of an entire project are a vital matter for JB Hi-Fi due to taken over Good Guys as well as to preserve its long term goal. However, If JB Hi-Fi keeps continuing practice of cost leadership and trustworthy operation strategy that means cheapest product sales in the market, then the company may sustain this records for a longer term. The company should also retain low-cost and low-risk business running approach. Moreover, In the face of e-commerce business popularity, JB Hi-Fi should be more focus on to increase the concept of e-commerce, an even company should introduce more products and flexible digital services to attract further customers especially, for the young generation and to meet their demands. Above mentioned entire business feature is very effective and helpful for JB Hi-Fi’s sustainable business prosperity in
Market Situation:
JB Hi-Fi Limited is one of the largest and fastest growing home entertainment retailers in Australia. This company started a business almost 43 years ago in Melbourne and has expanded over Australia and New Zealand, since inception it has maintained a wide reputation for its cost leadership strategy, which assisted JB Hi-Fi to attract millions of customers. These scores of customers have made JB Hi-Fi superior to the electronic retail company in Australian …show more content…
This way company has been spread over all over the country in order to minimise the risk and created large portfolio of stores this number reached as of 31st December 2016 is 302 in Australia and New Zealand, (JB Hi-Fi half yearly media release in 2017). This retail company also retained and sales huge number of products mix which move over period of times and then diversified again, such as, primarily selling music CDs now move to wide-ranging of home entertainment goods which gradually growing and growing over the times. Additionally, JB Hi-Fi solutions division has been struck a deal to provide IT facilities to business, governments and education sector, remains on pathway to bump into its future ambitious goal of around $500m of revenue yearly. The latest diversification is to introduce digital stores in October 2016 which given company’s extensive sales growth to 9.8% in January 2017 from 7.2% in January 2016, (JB Hi-Fi Half Year Results 2017). Conversely, through its optimistic sales growth over current years JB Hi-Fi managed to overcome the ‘stress test’ with the addition of funds. these business transactions has produced permitting debt to be minimised and letting company growth as well as threat turn into less and …show more content…
In term of upcoming sustainable business profitability, It is hard to say that JB Hi-Fi could maintain this consistent improve sales growth over extended period of times in light of introduction of massive competition in the form of Harvey Norman, Myer, David Jones, Target and Big W. It might be challenging in a highly competitive market to keep this viable status. Additionally, significant management modification and implementation of an entire project are a vital matter for JB Hi-Fi due to taken over Good Guys as well as to preserve its long term goal. However, If JB Hi-Fi keeps continuing practice of cost leadership and trustworthy operation strategy that means cheapest product sales in the market, then the company may sustain this records for a longer term. The company should also retain low-cost and low-risk business running approach. Moreover, In the face of e-commerce business popularity, JB Hi-Fi should be more focus on to increase the concept of e-commerce, an even company should introduce more products and flexible digital services to attract further customers especially, for the young generation and to meet their demands. Above mentioned entire business feature is very effective and helpful for JB Hi-Fi’s sustainable business prosperity in