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| Strategic Analysis of JB Hi-Fi | |

Yunyi FENG - 3133785; Junxi MAI - 3138621; Hon Sze CHAN - 3121268
2012-10-25
|

Executive Summary
JB Hi-Fi Limited provides a large range of consumer electronics and CDs and DVDs. In order to capture the value from its customers, JB is focus on three basic strategies: expansion of online sales, expansion of stores and development of its digital market. To achieve the primary objective of creating the best value for its shareholders, JB maintains low cost of doing business through bulk purchase and economies of scales.
To enlarge its market shares within the electronic retails market, JB Hi-Fi needs to create a flexible strategy against the turbulent environment. During this year, JB is currently operating in an environment with highly dynamic, highly complex and a relatively low unpredictable. However, it is able to match its strategies with the environmental changes, under regulated by some regulations and legislations.
Since JB Hi-Fi is continually expanding its existing market through online sales by the same products, it is put into the market penetration strategy. However, there are some issues occurred when JB implementing its strategies, such as the fluctuation of currency and operating in a high gearing ratio. To address these issues, JB must be aware of a full environmental change, for instance, the trend of increasing online sales. JB Hi-Fi needs to solve them in a short term, in order to capture the value from its online customers.
Overall, JB Hi-Fi is operating effectively and efficiently based on its financial report as on 31 June 2012. JB is currently in a relatively strong financial position and is able to enhance its market shares by maintaining its cost leadership strategy, and continuous innovation and development on its products and services.
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