JB HI-FI Marketing: SWOT, PESTLE and Porter's Analysis
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Read about the SWOT, PESTLE and Porter's analysis of JB HI-FI, one of the largest electronic industry providers for home appliances. Also, learn about the company's competitors and recommendations for improving customer experience.
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JB HI-FI MARKETING1 Contents Overview of the company..........................................................................................................3 Micro analysis: Porter’s analysis of JB HI-FI............................................................................3 Threat of new entrants............................................................................................................3 Bargaining power of the suppliers:........................................................................................3 Bargaining power of buyers:..................................................................................................4 Rivalry among the Existing Competitors:..............................................................................4 Competitor analysis....................................................................................................................4 Macro analysis: pestle analysis of JB HI-FI..............................................................................5 Political factors:.....................................................................................................................5 Economic factors:...................................................................................................................5 Social factors:.........................................................................................................................5 Technological factors:............................................................................................................6 Environmental factors:...........................................................................................................6 Legal factors:..........................................................................................................................6 Swot analysis of JB HI-FI..........................................................................................................7 Strength:.................................................................................................................................7 Weakness:..............................................................................................................................7 Opportunity:...........................................................................................................................8 Threats:...................................................................................................................................8 Recommendation:......................................................................................................................9
JB HI-FI MARKETING2 Increasing the opportunities of sales:.....................................................................................9 Improving the customer service:............................................................................................9 Adding new product lines:.....................................................................................................9 Providing staff with training:.................................................................................................9 Summary:.................................................................................................................................10 REFRENCES...........................................................................................................................11
JB HI-FI MARKETING3 Overview of the company JB HI-FI was started in the year 1974 by Mar. John barbet. It started as a single store which had an aim to deliver good and special music to the customers in Australia at a low price. These stores offer some of the world’s leading brand of computers, TV, cameras and tablets. It also provides the world with recorded music, games, DVD and various ranges of TV shows and all of them at a very cheap price(De Mooij, 2018). It is ranked at the 7thlargest electronic industry for the customers and it is also one of the biggest providers for home appliances. This brand have all the things that are needed to be successful like, best brands , cheap price,good location, huge range and lastly themost important thing which is good customer or consumer experience.JB solutions are a part of JB HI-FI and it is one of the fastestgrowing groups as they provide customers with technology. This company supplies various retail devices as well. JB HI-FI is also one of those companies which have a charity fund and it helps in reaching the goal of 1 million donors for the participation in the workplace by the end of 2020(Hollensen, 2010). Micro analysis: Porter’s analysis of JB HI-FI Threat of new entrants: The new entrants in the industry of retailing are bringing lot of completion and innovation (Christopher, & Peck, 2012).The companies are bringing new ways of doing things and this is putting a lot of burden on JB HI-FI to reduce price, cost and also to provide and new and different proposals to the customers. JB HI-FI will have to cope all of these challenges and build an operative way in order to get competitive rim in the market (Rosenbloom, 2012). Bargaining power of the suppliers:Most of the retailing industries are buying their raw material from various different buyers. In this case the suppliers are at a higher
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JB HI-FI MARKETING4 positionand they can decrease the JB HI-FI margin. The powerful dealers in the industry of retail sector make use of their power of negotiation in order to take advanced prices from the firms in the field of retail (Christopher, Payne, & Ballantyne, 2013). The main impact of the high bargain power of supplier is that it is reducing the profitability of JB HI-FI(Jobber, & Ellis-Chadwick, 2012). Bargaining power of buyers:Buyers, customers are always someone who demands a lot from the brand and they desire to purchase the best offerings made easy to get to by the brand at a very low price and this puts a lot of burden on JB HI-FIinordertomake profitability in the long run. If JB HI-FI will have good customer base then it will be able to have higher power of bargain and it will also be able to seek customers with various offers and discounts (Czinkota, & Ronkainen, 2013). Threat of the substitute products: when a new service or product happensthe same requirements of the customers in a dissimilar manner than the profitability of the industry has to suffer. For example in the case of Drop box and Google drive. These are the two supernumerary hardware storage determinations. There is high threat of substitute services if the brand offers a different value propositions that is exclusively poles apart from present aids of the industry(Armstrong, Adam, Denize, & Kotler, 2014). Rivalry among the Existing Competitors:If there is rivalry or competition among the current troupe in an industry then it will decrease or reduce the complete productivity of the industry. JB HI-FI operates in a inexpensive industry. Although this kind of competition does not take any toll on the general long term productivity of the business(Berthon, Pitt, Plangger, & Shapiro, 2012). Competitor analysis
JB HI-FI MARKETING5 The two biggest competitors of the company JB HI-FI are David jones and Myer. Although there are sufficiently of other competitors as well like Bing Lee, Freedom, Fantastic, Nick Scali, Super AMart, Clive Peeters, Ikea, Kmart, Big W, Good Guys, Retravision and Betta. JB HI-FI emphases on the investigation of the present industry situations and then uses various strategies to resolve them. JB HI-FI increase it advantage of competition by using the rule of 80-20 which simply means that 80 percent of the whole market revenue and 20 present of the competition. This is the main strategy that they focus on Macro analysis: pestle analysis of JB HI-FI Political factors:these factors take part as an important function in defining the issues that impacts JB HI-FI and it profitability in the long run. The stores of JB HI-FI are operating in various countriesand that is the reason it is exposed to different political environment and political risks. The attain success in such a vibrant Retailing industry crossways a variety of countries is to expand the methodical risks of political environment. In order to be successful in the market the company needs to analyse the market before entering a new market(Wilson, 2011). Economic factors:the economic factors include things such as the inflation rate, savings rate, interest rate; economic cycle foreign and exchange rate that help in determining the aggregate investment in an economy and aggregate demand. JB HI-FIcan make use of economic factors like such as growth rate, inflation & industry’s economic indicators such as Retailing industry growth rate, consumer spending etc. in order to forecast the growth route for the company (Tuten, & Solomon, 2017). Social factors:the way a society does things and the different cultures of the society impacts the values of the environment as well. The believes and attitude of population play a
JB HI-FI MARKETING6 very important role in the way market behaves. JB HI-FI Limited should appreciate the clienteles of a given marketplace and the way they design the communication for marketing of retailing industry consumers (Ahmed, & Rafiq, 2013). Technological factors:technology is a thing which is fast disruptive in various industries available in the market. Transportation industry is one of such industry that have been effected by this and the new companies with technologies does not give chance to any other company for establishingand adapting thechanges. Every industry nowadays are fast moving and is led by automation in the industry. Environmental factors:dissimilar markets have various dissimilar forms of rules and regulation’s related to the environment which can have high effect on the profitability of the firm. Even in a country, various states can have dissimilar law. For example in the case of United States Texas and Florida have dissimilar obligation clauses in case of accidents or environmental tragedy. Correspondingly a lot of European countries give healthy tax breaks to company that function in the sector of renewable industry.Thus prior to incoming a new markets or starting a new business in existing market JB HI-FI should very carefully estimate the environmental standards that are required in order to function in those particular market. Legal factors:there are amount of countries in which the legal framework and the other organizations do not robust sufficient for protecting the intellectual property rights of an organization. JB HI-FI must clearly assess markets before inflowingthem as otherwise it can lead ton theftof organizations secret as well as the general competitive edge of the organization or the company.
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JB HI-FI MARKETING7 Swot analysis of JB HI-FI Strength: Successful best of building new products Strong brand portfolio, JB HI-FIhave capitalized highly in construction ofstrong brand portfolio The company have knowledge in entering the new market and making it a success as well. The expansion has helped the companyhaving high revenues. JB HI-FI has been very winning in executing the new projects as well as the return of the goods with the help of new revenue streams The company is investing highly for the training and development of the employees which has resulted in good workforce who are skilled and motivated. The company has a very reliable network of distribution network that helps the company to reach half of the market. JB HI-FI Limited has sturdy free cash flows that deliver capitals in the hand of the company which helps the company to inflate into new projects. Weakness: Does not have a good product mandate estimating which leads to higher missed chances as associated to the competitors. It is not very fruitful with integrating the firms which have a different work culture The company is not capable to do its financial planning in a proper manner and the current ratio of assets and liquid suggest that the company should use cash in a more efficient manner.
JB HI-FI MARKETING8 The company is not capable to manage the challengeswhich are presentdue the entry of new companies and this had made the company mislaid the smallmarket share in the niche groups It needs more share for the new technologies JB HI-FI Limited needs to place more money into the development of technology in order to assimilate the processes Right now the share in technologies is not with the visualization of the business (Lovelock, & Patterson, 2015). The profitability ratio and net contribution of JB HI-FIis below the regular of the industry. Opportunity: New trends in the behaviour of the clientele expose up the new market for the company. The green drive of the company opens new procurement opportunities for the company. New policies for the environment help in creating new levels playing field for all the troupe in the industry.It stand for a countless chance for JB HI-FI Limited to drive home these benefit in thenew technology and also gaining market share in the new product grouping. Opening new markets because of the agreement of the administration. Threats: There is no steady supply of the new innovative products The liability laws of every country are dissimilar and it can be uncovered to various claims that can transform the policies in the market.
JB HI-FI MARKETING9 The company can express law suits in numerous markets for example the different laws and fluctuations in the market. The growing trend of isolationism in the economy of America can lead to same kind of response from other governmentand can also harmfully impact the international deals. Increase and intense competition have put a descending pressure on the profitability and the complete sales as well. Rise in raw material is also a threat for the company and its effectiveness. Shortage of trained workforce in the global market Recommendation: Increasing the opportunities of sales:JB HI-FI should study to notice and take benefit from every possible chance for the sales of the products. Improving the customer service:the most important factors nowadayswhich is to recover the customer service, JB HI-FI should expand various policy which are customer friendly and can create the loyalty of customers easily (Kotler, Burton, Deans, Brown, & Armstrong, 2015). Adding new product lines:The best ways to keep the customers attracted to the customers are by offering new and different products from the market. Providing staff with training:Once all the other things are done, the best way to implement passes that information on to your staff. Employees have to be skilled to decrease shrink, develop customer service and enhance sales opportunities.
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JB HI-FI MARKETING10 Summary: JB HI-FI was started in the year 1974 by Mar. John barbet. It started as a single store which had an aim to deliver good and special music to the customers in Australia at a low price. These stores offer some of the world’s leading brand of computers, TV, cameras and tablets. It also provides the world with recorded music, games, DVD and various ranges of TV shows and all of them at a very cheap price. It is ranked at the 7thlargest electronic industry for the customers and it is also one of the biggest providers for home appliances. Apart from this the micron analysis of the firm is done which has discussed various factors such as the threat of substitute, bargaining power of supplier and buyer, rivalry and the new entrants in the market, the report then discusses the competitors, the two biggest competitors of the company JB HI-FI are David jones and Myer. JB HI-FI increase it advantage of competition by using the rule of 80-20. Further the macro that is pestle analysis of the companyisdonewhichhavediscussedpolitical,economic,environmental,social, technological and legal factors that affect JB HI-FI. Lastly the swot and recommendations for the company are disused which shows that the company needs to improve its customer experience, provide staff training and etc.
JB HI-FI MARKETING11 REFRENCES Ahmed, P. K., & Rafiq, M. (2013).Internal marketing. UK: Routledge. Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2014).Principles of marketing. Australia: Pearson Berthon, P. R., Pitt, L. F., Plangger, K., & Shapiro, D. (2012). Marketing meets Web 2.0, social media, and creative consumers: Implications for international marketing strategy.Business horizons,55(3), 261-271. Christopher, M., & Peck, H. (2012).Marketing logistics. UK: Routledge. Christopher, M., Payne, A., & Ballantyne, D. (2013).Relationship marketing. UK: Routledge. Czinkota, M. R., & Ronkainen, I. A. (2013).International marketing. New York: Cengage Learning. De Mooij, M. (2018).Global marketing and advertising: Understanding cultural paradoxes. New York: SAGE Publications Limited. Hollensen, S. (2010).Marketing management: A relationship approach. UK: Pearson Education. Jobber, D., & Ellis-Chadwick, F. (2012).Principles and practice of marketing(No. 7th). : Queensland USA: McGraw-Hill Higher Education. Kotler, P., Burton, S., Deans, K., Brown, L., & Armstrong, G. (2015).Marketing. UK: Pearson Higher Education AU Lovelock, C., & Patterson, P. (2015).Services marketing. Australia: Pearson
JB HI-FI MARKETING12 Rosenbloom, B. (2012).Marketing channels. New York: Cengage Learning. Tuten, T. L., & Solomon, M. R. (2017).Social media marketing. UK: Sage. Wilson, A. (2011).Marketing research: An integrated approach(No. 3rd). USA: FT Prentice Hall.