Jb-Hifi Analysis Report

According to AASB 116 Property, plant and equipment held beyond the normal operating cycle of entity are deemed to be non-current assets. Here’s the extract from the report.

The purpose of this report is to compare the financial report of the two ASX listed companies they are Harvey Norman and JB Hi-Fi. It provides an analysis and evaluation of the current and previous profitability, liquidity and financial stability of both companies. Methods of analysis include financial ratio analysis for example profitability and performance ratio, liquidity ratio, financial and stability ratio by reviewing the financial report of two companies. It also review the industry analysis, highlighting the size of the industry in Australia, the level of competition and the significant environmental factors facing by these two particular companies and the industry as a whole. Further, it discusses about the

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

On average, subscribers purchased 19.9 CDs annually, mostly through Sonik’s website. Annual subscriber retention rate was 90 percent. Sonik accumulated CDs from various suppliers and fulfilled its own orders. Annual fixed costs of fulfillment were $400,000; shipments averaged 3.7 CDs per package. Annual marketing expenses were $230,000; Sonik spent 90 percent on acquiring new subscribers and 5 percent on subscriber retention. Sonik’s cost of capital was 12 percent. It was considering three growth options: a. Continue the Niche Strategy: Sonik believed it could acquire 20,000-30,000 new customers per annum for the next several years without major new investment. Sonik also believed that spending $0.5 million per annum would increase customer retention to 95 percent. b. Mass-Market Strategy: Abandon the subscription model, add many other music genres, and build a mass-market brand.

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.

The purpose of the following company profile, is to show the history and frequent fluctuation in both a logistic and economic sense of Pier 1. It will look at Pier 1’s financial peaks and valleys. How they have struggled to adjust their style and brand to stay competitive, and how the competition has affected the way Pier 1 interacts with their consumer. In conclusion this profile acknowledges omnichannel stores such as Pier 1 and how they have survived in a competitive world by continually meeting the needs of the consumer.

Competitive pressures coming from companies in other industries to win buyers over to substitute products. The pressures coming from companies in other industries to win buyers over to substitute products is strong. Driving factors are the ease of availability from a variety of sources such as AM/FM radio programs, CDs, and portable devices such as MP3 players or smartphones that have vehicle interfacing capabilities. The force is intensified by the attractive pricing (low or none at all), which also plays a factor in buyer bargaining power. In addition, the substitutes have comparable performance features.

‘We aim to return the UK High Street Retail business to its role as Britain's most popular stationer, bookseller and newsagent … Our plans encompass improved efficiency through cost savings and margin enhancement, while rebuilding the competitiveness and depth of our product ranges.' (Ms Swann BBC, July 2005)

The Markstrat world has a population of 250 million people. Through Year 4, the Sonite market consisted of 1.67 million people with an expected growth rate of 53% over the next five years. In order to meet the needs of consumers in the larger growing segments, Company U has developed two products in the Sonite market: SUSI and SULI. SUSI is the lower quality offering, marketed towards Singles and Others who are the most price-sensitive. Others and Singles are projected to have the highest growth rates over the next five years, at 98% and 86% respectively. This is Company U’s target market for SUSI and sales are forecasted to almost double in each segment through Year 10 (Table 1 and Chart 1). SULI is the high quality electronic offering, distributed primarily to Professionals and High Earners who are driven by performance and convenience. Market Share for both Professionals and another market segment, Buffs, are expected to decline through Year 10. The Vodite market currently consists of approximately 200,000 people with an expected growth of 200% through Year 10. The Followers segment of the Vodite market is projected to have the largest growth over the next five years at over 3300%. Company U introduced a Vodite, VUGO, in Year 5 to initially target the Early Adopters segment in turn creating a strong foundation to penetrate the Followers segment through Year 10 with predicted long term sales growth of 17%.

company’s reinvigorated focus on wireless phones, “RadioShack has established their position in the wireless phone business because of the one on one attention clientele can receive from shopping at RadioShack. This form of attention cannot be given on such a multifaceted product by anyone other than a highly-trained team member, such as at RadioShack. The company center of attention for 2006 is wireless phones, plain and simple. Employees are paid a commission on wireless sales. This is higher than any other item in our store. Our manager’s compensation is tied to store performance, which is most greatly impacted by performance of wireless sales. It is expected of us

Years of research and development, along with millions of shareholder dollars, have been invested in the latest technological breakthrough from Sonic. The next step for any new product on the concept-to-consumer road is the development of a marketing analysis. The following pages will provide evidence of countless hours of research the marketing team has compiled in an effort to provide the best answers to questions that will prove vital in the marketing and sales of the Sonic 1000.

To supplement that, BJB will offer a standard 90 day warranty for its customers, which far exceeds the 30 day electronic industry warranty. BJB will also have a customer service department that will assist customers, and audio auto parts distributing companies with installation solutions, warranty information, and auto part locations. This customer service department would have extended hours to accommodate customers, and auto audio shops who have late services for their automobile service department. BJB will also have an online service component in place for online ordering, and online appointment setting. The customer service contact number will have a live person to help with relative products, and service issues. This online customer service component will make ordering parts, and scheduling service appointments easy and convenient to customers, and auto audio part distributing companies. This will give BJB a upper hand in quality service, because most audio auto parts shops doesn’t offer this service.

The 1960’s market demand in domestic consumer electronic products soar after launched of televisions, telephones, cameras, office equipment, and automotive cars.

TABLE OF CONTENTS 1.0 EXECUTIVE SUMMARY3 2.0 INTRODUCTION3 2.1 Background to Organization3 3.0 ANALYSIS3 3.1 Porters 5 Forces (Model of Competition)3 3.2 PESTEL (External Analysis)5 3.3 SWOT6 4.0 KEY FINDINGS OF ANALYSIS/PROBLEM IDENTIFICATION/ KEY STRATEGIC CONCERNS6 4.1 Vertical Integration6 4.2 Diversification7 5.0 POSSIBLE SOLUTIONS & STRATEGIES.8 7.0 CONCLUSION9 8.0 APPENDICES11 Appendix 1: Porters 5 Forces11 Appendix 3: Luxury Goods Group & Brands Top Ten Competitors13 Appendix 4: Industry Map*.14 Appendix 5: Financial Performance14 Appendix 6: PESTLE Analysis15 Appendix 7: SWOT Analysis16 Appendix 8: Evaluating industry Attractiveness and Competitive strength19 Appendix 9: A Nine Cell Industry Attractiveness-Competitive Matrix20

The early 1990 's marked the beginning of a sea change in customer 's expectations with regard to good quality, healthy food. M&S image as a respectable retailer with its focus on providing a wide range of premium foods meant that the M&S brand, where food was concerned, became regarded as something of a luxury.