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JB Hi-Fi Industry

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II. Industry Analysis 1. Recent Industry Performance Porter’s Five Forces (1980), named after Michael E. Porter, is a critical framework to access the level of risk and degree of potential profitability of each industry in which firms are competing. Specifically, five forces are shown in Figure 1, are includes competition between rivalry, potential of new entrant, threat of substitute products, and pressure on bargaining power of suppliers and customers. Accordingly, the below analysis in JB HI-FI industry context applied according to five-force framework will further help JB HI-FI better understand the industry and also assist support strategic vision. a. Rivalry between Existing Firms – High The nature of the rivalry among existing businesses…show more content…
Although this branded home entertainment sector is particularly concentrated with few participants, there cannot be denied its high-statured market. JB hi-fi is facing increased competitions on both domestic home appliance business and global retailers expand in Australian. This includes the presence of major national retailers as Harvey Norman, Myer, Target (JB HIFI Prospectus), international competitors such as, online stores such as Koogan, and other bricks and mortar stores. These firms accounting for over … % of retail industry revenue (IBIS World…show more content…
Its no longer a low consumer bargaining which is denominated by major retailers due to the changes in economy. Due to the development of technology and appreciation in Australian currency, customers are having various choices from international retailers who crossing geographical barriers. Therefore, major retailer such as JB HI-FI in order to reach customer satisfaction and protect their leading position, they must continuously update the trend. Sale and discount campaigns throughout the store have clearly analysed the new habits of consumers. That also highlights that the level of negotiation is high for
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