International Strategic Management: A Case of JB Hi-Fi

International strategic management 1
International strategic management: A case of JB Hi-Fi
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International strategic management 2
Table of Contents
Executive Summary.......................................................................................................................3
Introduction....................................................................................................................................4
The Micro and Macro-Environment in Which JB Hi-Fi is Operating.....................................4
JB Hi-Fi’s Competitive Advantage over its Rivals.....................................................................6
Porter’s Generic Strategies...........................................................................................................7
JB Hi-Fi’s Limited Sales and Growth..........................................................................................9
Conclusion....................................................................................................................................11
The Recommendation at the Functional and Business Level..................................................11
References.....................................................................................................................................13

International strategic management 3
Executive Summary
The paper determined the strategic management of JB Hi-Fi Company, which is a retailer
of various consumer products including electronic home appliances, Blue-rays, computers and a
number of Telstar services. The company has an operating income of A$221 million, net income
of A$152 million and revenues of A$4 billion. The company is operating under competitive
macro and microenvironment. Factors like political uncertainty, social-cultural factors,
technologies, and legal issues have been key determinants of the organizational success. Macro
environment factors like organizational structure, culture, and competent staff have enabled the
organization to survive the competitive edge in the market. The company has gained a
competitive advantage because of high brand trust, customer loyalty, low prices, delivery
services, and high-quality work. The company has adopted a pricing strategy to survive the
competitive environment. Differentiation generic strategy has been used by the organization to
increase sales and customer satisfaction. Ansoff model is used by the organization to determine
its future opportunities and growth. The paper also pointed out that JB Hi-Fi company need to
improve the current products to meet customers’ demands. The company is recommended to
implement a 24/7 support system, advance its technologies, implement a mobile application with
latest features and comparability to all mobile devices.

International strategic management 4
Introduction
JB Hi-Fi Limited is an Australian company operating in the consumer electronics
industry and engaging in the selling of home consumer electronic products including digital still,
home theatres, mobile phones, video cameras and televisions, including electrical accessories
like small electrical appliances, air conditioners, computing equipment and kitchen equipment,
and other things like games and movies and car sound systems (Needles Powers & Shigaev 2009
p. 13). The organization stocks a range of exclusive specialist Hi-Fi products. The company’s
subsidiaries include JB Hi-Fi NZ Limited, Rocket Replacements Pty Ltd, JB Hi-Fi Group Pty
Ltd, and JB Hi-Fi (A) Pty Ltd.
Established in 1974 by Mr. John Barbuto who was a simple philosopher, JB Hi-Fi started
a business from a single store in Victoria and delivered various Hi-Fi equipment including
recorded music at a low price in Australia. However, the business was sold in 1983 and nine
other stores were opened in 1999 (Roy et al. 2013 p. 16). Aiming at taking the business to be a
success over the nation, senior management and private equity bankers purchased the company
in July 2000. In October 2003, the organization was floated on the Australian stock exchange.
Later in 2004, JB Hi-Fi bought the Queensland Clive Anthony stores which sold consumer goods
like air conditioning equipment, consumer electronics, and cooking appliances before being
bought (Gettler 2011 p. 7).
The Micro and Macro-Environment in Which JB Hi-Fi is Operating
The micro and macro-environment factors have a significant role in the determination of
factors impacting the long-term profitability of companies in various country markets. JB Hi-Fi
operates in retail in different countries and has exposed itself to different political system risks