JB HI-FI Marketing: SWOT, PESTLE and Porter's Analysis

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.

Running Head: JB HI-FI MARKETING 0
JB HI-FI MARKETING
System04121
7/12/2019

JB HI-FI MARKETING 1
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 MARKETING 2
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 MARKETING 3
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 7th largest
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 the most 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

JB HI-FI MARKETING 4
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-FI in order to make
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 happens the 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 MARKETING 5
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 countries and 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-FI can 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 MARKETING 6
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 establishing and adapting the changes. 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 theft of organizations secret as well as the general competitive edge of the
organization or the company.

JB HI-FI MARKETING 7
Swot analysis of JB HI-FI
Strength:
 Successful best of building new products
 Strong brand portfolio, JB HI-FI have capitalized highly in construction of strong
brand portfolio
 The company have knowledge in entering the new market and making it a success as
well. The expansion has helped the company having 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 MARKETING 8
 The company is not capable to manage the challenges which are present due the
entry of new companies and this had made the company mislaid the small market
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-FI is 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 the new 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 MARKETING 9
 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 government and 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 nowadays which 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.

JB HI-FI MARKETING 10
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 7th largest 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
company is done which have discussed political, 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 MARKETING 11
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 MARKETING 12
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.