PU3088: International Strategic Management Report - JB Hi-Fi

This report provides a comprehensive analysis of JB Hi-Fi's international strategic management. It begins with an introduction to JB Hi-Fi, an Australian-based retailer of electronic products, and its subsidiaries. The report then delves into the macro business factors influencing JB Hi-Fi, including political systems, economic cycles, customer attitudes, and technological advancements. It also examines JB Hi-Fi's competitive advantages, such as continuous sales growth, a diverse product portfolio, and employee expertise. The report further explores Porter's Generic Strategies employed by JB Hi-Fi, highlighting its differentiation and cost leadership strategies. The analysis includes the company's sales and growth, customer retention, and product development strategies. The conclusion summarizes the key findings, identifies areas for improvement, and offers recommendations, such as mobile app development, round-the-clock customer support, social media marketing, and product diversification. The report is supported by references to relevant academic sources.

International
management
JB Hi-Fi Limited

Introduction
• JB Hi-Fi Limited is based in Australia and offering
electronic products.
• They are having number of subsidiaries.
• Established in 1974 by Mr. John Barbuto.
• They became public company in 2003.

Macro business factors
• Different political systems in different countries.
• High level of corruption.
• Risk of military invasion.
• Government interference and bureaucracy.

Macro business factors
(Cont.)
• Economic cycle and inflation rate determine the
business of JB Hi-Fi.
• Rate of unemployment and economic growth also
determines the business of JB Hi-Fi.
• Customer’s attitude and shared beliefs.
• Education level and standards.

Macro business factors
(Cont.)
• Initiation of the disruptive technologies in the market.
• Incursion of huge cost in developing new technologies.
• Technological advancements of the competitors.
• Legal standards and environmental regulations.

Competitive advantages
• Continuous growth of sales per year.
• Number of stores are also increasing per year.
• Wide range and diversified product portfolio.
• High level of engagement and expertise among
the employees.

Porter’s Generic Strategies
• JB Hi-Fi follows differentiation strategy.
• Developing distinctive products over their
competitors.
• Cost leadership is also being followed by offering
cheaper price.
• Effective after sales service.

Porter’s Generic
Strategies (Cont.)
• They were ranked 1st in Corporate Reputation Index.
• Online platform is also being developed.
• Development of self service for the customers.
• Offering discounts and offers.

Sales and growth
• They are growing at the rate of 5 percent.
• High level of customer retention.
• Continuous development of the products.
• They initiate the strategy of product development.
• Vertical and horizontal diversification are being
followed.

Conclusion
• Wide variety of products.
• Increase in competition due to new entrants.
• Authentic and quality services.
• PLC is in matured stage.

Recommendations
• Mobile apps should be developed.
• Should offer support round the clock.
• Social media marketing should be initiated.
• Products should be more diversified.

Reference
• Porter, M.E. and Heppelmann, J.E., 2014. How smart, connected
products are transforming competition. Harvard business
review, 92(11), pp.64-88.
• Pleshko, L.P. and Heiens, R.A., 2008. The contemporary product-
market strategy grid and the link to market orientation and
profitability. Journal of Targeting, Measurement, and Analysis for
Marketing.2nd ed. Germany: Springer pp.108-114.
• Needles, B.E., Powers, M. and Shigaev, A., 2009. Financial
characteristics of high performance companies in Australia.
Working paper presented at the Sydney University Accounting
Research Foundation, Sydney. Netherlands: Elsevier
• Ormanidhi, O. and Stringa, O., 2008. Porter's model of generic
competitive strategies. Business Economics.3rd ed. U.S.A:
Elsevier pp.55-64.