JB Hi-Fi Industry

JB Hi-Fi is an entertainment and consumer electronics chain store, providing a range of branded home electronic products and music records. The electronic industry is experiencing growth over the last few years mainly due to the introduction of a handful of electronic gadget which captures the attention of consumer. However, this growth focused on a few products such as smart phones, tablet, and music player while the rest of the products are slowing in terms of growth.

JB Hi-Fi limited is a company that is based in Australia. It usually engages in the selling of the home consumer electronic products which include the televisions, video cameras, mobile phones, home theatres, digital still and other electrical accessories like the kitchen equipment, computing equipment, the air conditioners, small electrical appliances like the car sound systems; both visual and audio and other things like the movies and games. It continues to stock exclusive specialist range of Hi-Fi products. JB Hi-Fi has its subsidiaries that include JB Hi-Fi (A) Pty Ltd, JB Hi-Fi Group Pty Ltd, Rocket Replacements Pty Ltd and JB Hi-Fi NZ Limited.

JB Hi-Fi is an Australian retailer of consumer electronics it began in 1974, where Mr. John Barbuto (JB) established JB Hi-Fi in East Keilor, Victoria. His main focus was to deliver a special range of Hi-Fi and recorded music at the lowest prices in Australia and New Zealand. Mr. John Barbuto sold the business in 1983 and by 1999 another nine stores were opened. In July 2000 private equity bankers and senior management purchased JB Hi-Fi. In October 2003, JB Hi-Fi was floated on the Australian Stock Exchange. This company still maintaining Barbet’s original philosophy, JB is one of Australasia 's fastest growing and largest retailers of home entertainment.

Company: JB Hi-Fi limited has achieved sales of $3.65 billion in the financial year of 2015, with a total sales growth of 4.8% and comparable sales growth of 2.9% on last financial year. In 2015 the net profit tax has increased 6.4% to $136.5 million, earnings per share increased 7,4% to 137.9 cents per share and the hole dividend for the 2015 financial year increased 7.1% on the before financial year to 90.0 cents per share. JB HI-Fi Capital Management area has conducted regular revirews of all the aspects of its capital structure with the main focus on increasing all returns to its

JB Hi-Fi Limited (JBH) is a specialty discount retailer of branded home entertainment products. The group's products fall into consumer electronics, car sound systems, music, Digital Versatile Disc’s (DVD’s) and white-goods. JB Hi-Fi Limited achieved revenue growth of 17%, EBIT growth of 23% and NPAT growth of 26% for the year ended in 30 June 2010

The intensity of rivalry and the threat of substitutes are strong components for J.C. Penney to consider as they continue to strive for increased revenue and market share. Their two primary competitors are Macy’s and Kohl’s, both of whom have fiercely competitive strategies to be strong retail operations. For instance, while Macy’s offers a multitude of promotional deals and is working hard to choose products based upon demographics and geographic segmentation, Kohl’s is attempting to reduce their inventory levels and improve their marketing strategies in order to become a stronger competitor in the department store segment of the retail industry. In order to compete with their competitors, J.C. Penney aims to focus on their previously successful promotions and home department segmentations by bringing in new reputable designers in order to attract a larger customer base. Due to the fact that the intensity of rivalry and threat of substitutes are both moderately strong in the retail department store industry, J.C. Penney ought to be diligent in their implementation of strategies in order to achieve success in the retail business.

In the past, JCP had, on average, one price campaign every day. The stores were full of sale signs and retail rise was getting out of control. JCP partnered with numerous exclusive collaborations which was hoped to bring about an expansion for the firm. However, due to the economic slump, the oversaturation of the market, and an expected lack of quality in the goods from the consumer perspective, JCPenney’s success was degrading in contrast to its competitors. (Sloan, 2010).

2. How Porter's Five Forces of Competition impact the company Porter set out his famous Five Forces model in chapter 1 of his 1980 Competitive Strategy: Techniques for Analyzing Industries and Competitors, which has now become the dominant paradigm for the "Structural Analysis of Industries." The model places supply chain forces on the horizontal access and market structure vertically above and below industry competition, which they all point to as the center of potential profitability (Hitt, Ireland and Hoskisson,

Porters five forces will help us in analyse the industry amazon.com is in. Five Forces which will be analysed will be

As JB Hi-Fi is transparent in their corporate reporting, they have been rewarded for this by being ranked in the top three of AMR’s Corporate Reputation Index for the past six years. A leading research consultancy company, AMR frequently studies corporations and each year announces a list of companies with the best Corporate Reputation according to seven parameters; Products and Services, Innovation, Workplace, Citizenship, Governance, Leadership and Performance (AMR 2015). This further concretes that JB Hi-Fi has endeavoured to safeguard its intergrity and this is reflected to all.

Michael Porter wrote about five forces affecting the profitability and viability of companies. The five forces are existing competitors, new entries into the market, substitute products, bargaining power of customers, and the bargaining power of suppliers. (quickmba)

In his article “The five competitive forces that shape strategy“, Michael Porter (2008) updates and extends his “five forces” framework he first introduced in 1979 and which has influenced the academic and business research for decades. He reaffirms that “THREAT OF ENTRY”, “THE POWER OF SUPPLIERS”, “THE POWER OF BUYERS”, THE THREAT OF SUBSTITUTES”, and “RIVALRY AMONG EXISTING COMPETITORS” are the forces that shape every single industry, and a thorough understanding of such forces help analyze everything from the intensity of competition to the profitability and attractiveness of any industry. The framework has two dimensions; the vertical dimension that connects

Porter’s five forces analysis is a tool is useful for us to analyse the threat of competition in an industry. Porter believed that the industries were influenced by five forces; competitive rivalry, threat of new entrants, bargaining power of suppliers, bargaining power of buyers, and the threat of substitutes. Analysing these areas can allow you to see attractiveness of the market and find a competitive advantage.

Porter’s Five Forces Analysis is based on the concept that the key objective for any organization should be to gain advantage over its competitors, it is not the industry that an organization is in that counts, but where it wants to compete in terms of the nature of the competition. This competition is provided by the nature of the rivalry between existing firms, the threat of potential entrants and substitutes and the bargaining power of both the suppliers and buyers (Lowson, 2002). The five-forces model is extremely helpful in systematically diagnosing the principal competitive pressures in a market and assessing how strong and important each one is. This straightforward approach is the most widely used technique of competition analysis.

The Porter`s five forces are threats of new entrants, the bargaining power of buyers ,product substitution and intensity of rival of rival among competitors .These forces measure the competitiveness of the market and also helps the company to identify strategies to use to penetrate such and gain market share.