Jb-Hifi Analysis Report Essay
JB Hi-Fi is an entertainment and consumer electronics chain store, providing a range of branded home electronic products and music records. The electronic industry is experiencing growth over the last few years mainly due to the introduction of a handful of electronic gadget which captures the attention of consumer. However, this growth focused on a few products such as smart phones, tablet, and music player while the rest of the products are slowing in terms of growth.
Despite competing in a broad market environment, JB Hi-Fi is able to outperform its competitor and placed them well ahead in the market gaining a large marker share. JB Hi-Fi tries to achieve its objectives of expanding its market share by adopting 3 …show more content…
2. Strategic Analysis
2.1 External Environment Analysis
External factors are most influential in the current market, and through JB’s positioning in a competitive retail environment, a close analysis of this environment needs to be conducted. Both a PESTEL and SWOT analysis will assist in better understanding external influences, in particular the influence of the current global economy.
2.1.1 PESTEL Analysis
Copyright © 2011 Cengage Learning Pty Limited. Hanson et al., 2011: 36
A major political factor is the implementation of the carbon tax. This tax increases production cost contributing to increasing retail price of the product (Siriwardana, Meng & McNeill, 2011). Therefore, this tax would directly affect JB’s financial position (if manufactured in Australia) as it affects JB strategy to deliver products at a lower cost compared to products manufactured without carbon tax. The carbon tax would also have negative effect on consumers, whereby with a rise in costs of living, electricity etc, it reduces household’s