SOOT Analysis The reads Weaknesses 0 Intense Industry Competition The consumer electronic market in which JIB Hi-If operates, both Australia and New Zealand, experienced a fiercely competitive circumstance (Annual report, 2014). To some extent, JIB Hi-If’s profit of sales may deteriorate. C] Digitization of Software Online-virtual software is taking place of physical software to a certain degree due to its convenience. The willingness of customers to select virtual software rather than physical one may results in a fall in traditional software sales (Annual report, 2014).
C] International Price Influence Consumers may compare prices between oversea and domestic items from various ways to seek the lowest price. International pricing competition may hush weaken the price superiority Of brick-and-mortar stores. C] Consumer preferences The ever-changing product preferences of consumers result in a high product replace, update rate as well as item obsolete rate, which may accordingly lead to inventory fluctuation.
C] Geographic Concentration According to the annual report of 2014, the main area of operating business is around the northeast and southeast in the Australia, only a few percentage Of stores located in the west part. C] Reliance on Key Personnel JIB Hi-If has a number of key senior management staff and is committed to providing an attractive employment environment, conditions and prospects to assist in relating these personnel. (Prospectus offs Hi-If, 2003).
C] Small Business Units Compare with the major national retailer, such as Harvey Norman, Big W and Meyer, the total number of JIB Hi-If’s retailing stores is much smaller, which may potentially decreases the market shares and causes the loss of consumers. CLC Growth Prospects JIB Hi-If’s planned store roll-out program is less recognizable than that in its established markets, which may affect the future operating performance and result in an uncertainty of financial stability (Annual JIB Hi-A Limited CLC Economic environment
Consumers may have tighter discretionary budget due principally to the uncertainty of domestic economy while JIB Hi-If may lose part of revenue in New Zealand because of the currency exchange rate. Report, 2012). Over-reliance on Certain Suppliers JIB Hi-If has stocked a large and diverse range of products, this is reflected on that JIB Hi-If relies on specific suppliers or products is less than some smaller competitors (Annual report, 2014). Opportunities Strengths C] Transformation of store JIB Hi-If Home branded store provide JIB Hi-If traditional categories with an extension of white-goods, cooking and small appliances for consumers.
The continuing transformation of new Home stores is more likely to expand the marker share of JIB Hi-If. C] Online retail website The prevailing of click-and-collect shopping provides significant convenience for consumers, JIB Hi-If creates a “seamless customer experience” combines with physical store which may lessen occupancy cost and wages. C] Growing gaming market A soaring demand for the current generation consoles in Australia and New Zealand which in turn has result in tremendous demand for relative software, accessories and items such as game cards (age new, 2014). CLC Expanding product categories
The rapid introduction of latest electronic products and software provide more choices for consumers to satisfy their needs, attracting consumers’ attention and thus increasing demand (Fishbowls, 0 Low interest rate The interest rates in both Australia and New Zealand continuously maintain at a low level, which may potentially enhance consumption in electronic-product retail industry. JIB Hi-if HOME Brand With the development of JIB Hi;If, the concept of JIB Hi-If HOME were proposed in recent years, the occurrence of this new type store represents a significant growth opportunity, which reinforces the JIB HI-Ass brand strength and identity.
Distinctive Brand Personality JIB Hi-If has a unique, high energetic, engaging and entertaining retail format that differentiates customers and give them a reason to visit the physical stores (Manchuria Australia, 2012). C] Customer Education and Engagement JIB Hi-If always engages, educates and entertained Customers with their product range, merchandising and knowledgeable staff. Besides, the growth of online retail has heightened the need of differentiation (Robert, 2010). CLC High Foot Traffic Locations JIB Hi-If has one of the lowest rental expenses within the industry.
Most of the locations of stores are setting at a high foot raffia location. It can help customers to visit stores easily and conveniently (Annual report, 2014). L] Low Cost of Doing Business JIB Hi;If has the lowest CODE of listed retailers in Australia. This is mainly driven by the high sales and the prevention of inefficiency and waste (Annual report, 2. Key Capability Analysis Bring Brands to Home Appliances And Expand the JIB HI-Fl HOME Resources utilized Core Competency Assessment If Nan call Valuable: Yes. The total consolidated sales grew by 5. 3% to $3. Bib, with comparable sales up 2. % that 0 Able to attract more customers outperforming the overall industry. JIB Hi-If invested $ 13. Mm in the conversion of 13 ; Provide convenience for existing stores to JIB Hi-If HOME, which customers to search products converted stores achieved comparable sales growth of 10. 6% in IFFY post conversion. 0 Increase the product range Organizational JIB Hi-If is planning to increase the number of JIB Hi-If HOME stores to 75 by the end of Rare: No FYI 6. The long term opportunity is fully quantified base on space available in existing Costly to imitate: Yes stores and the suitability of new store locations.
Physical JIB Hi-if has 182 stores in total located in Australia and New Zealand until IFFY, which including 22 Hi-If HOME stores. C] Large-scale of business development C] Huge capital to expend Reputation JIB Hi-If has high level of loyalty and trust Exploited by organization: Yes from customers which ranked first in the 2014 Corporate Reputation Index. Its reputation and experience in retailing low-margin products C Raise sales based on historic data lead to the success Of its HOME concept stores.
Human JIB Hi;If retains and attracts passionate, motivated and knowledgeable staff due to its busy and enjoyable working environment. Efficient HER Management System to Provide Perfect Customer Services Resources Utilized If uncial JIB Hi-If has approximately 860 million worth of assets which provide a strong capacity to C Maintain and boost market share further invest in human resource management system and customer service enhancements. 3 JIB HI-A Limited Customer service culture across the business. O Increase consumer awareness of Decent recruiting and training programs and their products improved staff availability.
Rare: No Stores in high foot traffic areas provide the busy and enjoyable working environment, Costly to imitate: No which encourages employees to work passionately and efficiently. Trusted Australian company brand name, associated with quality, low price, variety and CLC Set up future detail strategy good customer services. Associated with quality, low price, variety and JIB Hi-If has consumer demanding staff, thereby being able to clearly explain different features of products and assist in choosing the product that best fits the consumer’s need.
The group continues to attract and retain high caliber staff. 3. Major Stakeholder Analysis Stakeholder Group Specific Interest of This Assessment of Shareholder Value Alignment Value aligned as profit minimization can be achieved through building up customer loyalty, which is earned via: Customers Receive fair/ bargain exchange-value and quality of money spent CLC Receive safe and reliable product C] Convenient store access C] Receive regular orders for goods Conflict of interests arises as shareholders wealth increase demands lower input price.
Relevant actions from JIB Hi-If include: Suppliers L] Quality goods at discounted price C] Good customer service C] Be paid promptly for supplies delivered 0 Push local suppliers “very hard” on 4 C] Gain bargaining power pricing issues 0 Introduce a new direct import model so as to cut off ‘the middle man'(Stafford, 2011) Value alignment is guaranteed as involvement community and environmental affairs promotes JIB Hi-If’s reputation, that in turns attracting more customers and sales, thereby enhancing shareholder value.
C] Protect the environment JIB Hi-If targets two key areas: the environment and the community (Annual report, 201 4) Community C] Give back to the 0 Environment: Energy efficiency and the elimination or minimization Of solid waste C] Social: Participating a range of organizations to help address different social issues 4. Generic Business Level Strategy JIB Hi-If Ltd is pursuing the cost leadership strategy.
JIB Hi-If has the lowest cost of doing business (CODE), and in an increasing scale, in the listed tillers in Australia which contain use to deliver cost reductions. JIB Hi-if also focuses on productivity for improving efficiency and well performs in controlling store wages in Australia and New Zealand (Annual report, 2014). Besides, in order to support the development of HOME branded stores, JIB Hi- If is perfecting its supply chain and has launched a low cost, fit-for-purpose supply chain together with logistics strategy.
This new supply chain is constantly innovating to ensure it to remain current and relevant to its customers and therefore strengthening the competitive advantages of JIB Hi-If – low cost strategy (Barrier, 2010). Meanwhile, JIB Hi-If has a solid relationship with suppliers which enables JIB Hi-If can have a relatively strong bargaining power to reduce purchasing cost (Lowry, 2014), thereby consolidates the cost leadership strategy. 5 5. Strategies Revision of JIB Hi-If Holding Ltd 5. 1 .