Business Analysis of Harvey Norman Essay

1004 Words Sep 9th, 2012 5 Pages
Business Analysis of Harvey Norman
Industry analysis
While Harvey Norman trading as a multi-sector business selling computer, electrical, furniture and bedding goods, the retail industry in which HVN operates involves larger range of goods and services (all customer consumables). The largest product segment is clothing, footwear and accessories. However, driven by growth in product technology and functionality, electrical goods have overtaken goods from department stores over the past five years with several other major competitors (Dick smith, Office works etc.) who kept pressure on HVN.

According to Australian Bureau of Statistics, the sector has been grown modestly over 2011-12, with sales increasing by 1.5% to $21600 million.
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This success made Harvey Norman to expand its market into the furniture and computer industries.
The main competitive advantage is the low price. Because it sales its products in superstore, the intermediary business can be eliminated which directly reduces the cost. Another merit is that Harvey Norman is a comprehensive supermarket including different kinds of products, which can increase the sales opportunity rather than JB HiFi that only focuses on electronics.
Harvey Norman is analyzed by evaluating its strengths, weaknesses, opportunities and threats. * Strengths
Harvey Norman holdings Ltd has its strength on the scale of retails, such as electrical products, furniture and so on. It has a very popular slogan saying that ‘Go Harvey, Go Harvey, Go Harvey Norman’, which makes a brand effect for the company. Besides, with the comparative advantage of its size, the HVN also has superiority of buying in bulk. It has relative lower cost for retail so that the price will be lower. Moreover, Harvey Norman follows the solid franchise model, which shows that approximately 35% of its revenue is generated from its franchise. * Weaknesses

* Opportunities
HVN has expanded its market overseas, for instance, like New Zealand, Slovenia, Ireland, Singapore and Malaysia. It may earn more returns from oversea market in the future. * Threat
The online

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