general environment analysis about JB-Hi-Fi 2000words with references

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Running Header: JB Hi-Fi: General Environment Analysis
Introduction:
JB Hi-FI is an online retailer together with in-store, offering home entertainment, music,
electronic goods, hardware and the home appliances established in Australia. After establishing
JB Hi-Fi in 1975, the founder of business was sold to David Rodd, Richard Bouris, & Peter
Caserta in 1983, expanded it into chain of stores and turn around it into $ 2.9 Billion (AUD) by
2016. JB Hi-Fi was predominantly engaged in the selling of music CD‟s, later used forward
integration strategy to expand into consumer electronics including LCD and Plasma televisions,
digital camera photography, audio/visual, in-car entertainment, portable audio, gaming consoles ,
computer/video games, and accessories, white goods and DVD & the Blu-ray movies,
accessories, gadgets and information technology.
Business Environment:
JB has always been fast in changing with the dynamic business environment. Whether it comes
to sales of “Music CD‟s” or “Portables” in 2004 to sales of “Fitness” band in 2016, JB have
consistently adopted itself and have been dominant in innovating with change in technology. The
business models of JB have always been aggressive to continuously change itself with the
environment. PESTEL Framework of JB can be analyzed as:
1) Political factor- Multiple instances have been there of Political instability in Australia
say in 1996, 2000, 2014 or 2016, but JB Hi-Fi have acted firmly in the instable
environment and reported a decent growth. This possesses a great threat on operations
of business. However, the JB Hi-Fi was a major beneficiary of one of most historic
decision of Rudd‟s government to announce a stimulus package of $900 to
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JB Hi-Fi: General Environment Analysis
Australians tax payers. As then demographic structure of Australia was majorly 18-30
Year old generation, who spends majorly on new personal and home entertainment,
JB gained considerable Revenue during the economic downturn.
2) Economic factor- Whether it comes to European economic crisis or the global
recessions of 2010, demand for consumer electronics had a severe impact globally,
but impact on JB Hi-Fi was minimum. The management of company takes proactive
steps in order to meet the global economic challenges effectively.
3) Social factor- With a change in consumer preference and shifting of trends, JB has
framed strategy of „Riding with the trend‟ and has used it effectively to its advantage.
Proper use of Social Media platforms like Facebook, twitter, You Tube, etc , have
contributed a lot to accelerate growth of online retail market for JB Hi-Fi. Further, JB
is equally responsible company in contributing towards the Corporate Social
Responsibility (CSR) initiatives actively. It ranked top in 2016 Corporate Reputation
Index.
4) Technological factor- With change in technology from vinyl records to Blue-Ray
Disc, JB have always been first to adopt the change and innovate with the new
changing technology. This can be easily observed with the growth story of the JB Hi-
Fi. Company has diversified its portfolio from selling vinyl records to selling
consumer electronics.
5) Environment factor- Bulk packaging disposal, waste disposal, noise pollution, etc are
some of issues which have been taken care very well by the management of the JB
Hi-Fi.
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JB Hi-Fi: General Environment Analysis
As per JB‟s code of conduct-
“All the employees of the company are responsible for the maintenance and
protection of the environment. Therefore Employees should always consider impact
of activities done by them on environment and local community, including way in
which the waste is disposed, the chemicals are stored and used and the natural
resources utilized”.
6) Legal factor- These are the regulations which affect the legal liability of the business.
Various acts such as consumer law, employment law, copyright law, health and safety
law, etc effects the legal position of the JB. Further, when with use of i-Pod‟s, use of
CD‟s was negatively affected due to increase in the illegal music downloads, JB Hi-Fi
instead of fighting for the trend of illegal download, expanded their product mix and
included i-Pod and other portable MP3 players.
Michael...