Jb-Hifi Analysis Report Essay

6211 Words Aug 10th, 2016 25 Pages
Executive Summary

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
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Section 4 examines the key broad business level strategies. These strategies include Miles and Snow’s adaptive, Ansoff’s product/market model and Porters competitive business level strategy. Section 5 and 6 provides an analysis of JB’s strategic implementation by adopting Mckinsey 7s model. This report is concluded by a thorough evaluation of JB’s performance using the Balanced Scorecard approach in section 7.

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

Political Factors

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

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