Business Analysis of JB Hi-Fi

Running head: BUSINESS ANALYSIS OF JB HI-FI
Business Analysis of JB HIFI
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1BUSINESS ANALYSIS OF JB HI-FI
JB Hi-Fi is a retailer dealing with consumer goods in Australia that specializes in
selling of the video games, blu-rays, DVDs, hardware, mobile phone, electrical home
appliance and that of Telstra services 1. With the declining popularity of the vinyl records JB
Hi- FI cleared the stock of that of records and started to offer Exclusive CD. JB HIFI has
embarked on a path of diversification of the business. The main products of the industry
where JB Hi- Fi is working includes that of VCR, entertainment system, think pad line of the
laptop, I- Pad and Kindle. Video cassette recorder is still popular and it can help in saving
favourite programs of the television that can be played later on. The entertainment system
helped in the establishment of indelible interface along with game design ideas. Think pad
line of laptop acted like a revolution in the domain of personal computing industry and the
navigation device is extremely popular. The I-pad helped in replacing the laptop and it acted
like a personal computer. Previously it used to sell only music CD’s but it has now veered
towards the selling of consumer electronics that includes Plasma, digital camera photography,
in-car entertainment, gaming accessories, gaming consoles, white goods, gadgets and that of
information technology. JB HIFI sells certain accessories within that of certain stores like CB
radios, surveillance camera system, guitars, ukuleles and various DJ equipment like that of
CD mixer and microphones.
JB HIFI will prosper in the short term as well as in the long run owing to the rising
popularity of the entertainment industry. The popularity of the brand JB HIFI can be seen
from the fact that the company has opened 112 stores that combine that of VIC, ACT, TAS
and that of NSW. The industry pertaining to video games, DVD’s, mobile phone and that of
electrical home appliances will continue to grow in the present age because of the rising
demand of these in the current market. Video games, DVD’s and mobile phones are very
popular among the urban class in the modern age. In the bygone era, people used to look for
1 "JB Hi-Fi | JB Hi-Fi - Australia's Largest Home Entertainment Retailer". 2018. Jbhifi.Com.Au.
http://www.jbhifi.com.au/

2BUSINESS ANALYSIS OF JB HI-FI
pleasure outside the confines of their home. The essence of playground has lost its
importance in the present age and the youth of the present age find entertainment by taking
recourse to video games, home appliances and that of the mobile phones. It can hence be said
that the prospects in relation to this industry will continue to flourish in the coming years.
The main players in the industry comprise of CVE Technology, Cornwall Electrical
Wholesalers Limited and Lastar. CVE Technology has been responsible for delivering
unsurpassed quality in relation to the products 2.
JB Hi-Fi was set up in the Melbourne suburb of that of Keilor East. Jihn Barbuto was
responsible for opening the company in the year 1974. Barbuto was responsible for selling
the business in 1983 to that of Richard Bouris, Peter Caserta and David Rodd. They were
responsible for expanding the JB Hi-Fi in the ten different stores within Melbourne along
with that of Sydney. It was able to turn over a revenue of over $ 150 million by the end of the
year 2000. A majority of the holding of JB HI-FI was sold to that of private equity. It was
consequently floated within Australian Stock Exchange in the month of October in the year
2003. In the beginning, the company used to specialize only in Hi-FI equipment. Later on,
they started offering CD’s and became a major Australian retailer.
The competitive advantage of the company has been provided by the fact that it is the
sole retail chain within Australia that is instrumental in the selling of Dell Computer
Hardware within that of the retail stores. The revenue of JB Hi-Fi is very positive and it is
growing. The competitive advantage of JB Hi-Fi is provided by the fact that it is a major
2 Bogers, Marcel, Ronen Hadar, and Arne Bilberg. "Additive manufacturing for consumer-centric business
models: Implications for supply chains in consumer goods manufacturing." Technological Forecasting and
Social Change102 (2016): 225-239.