Information Systems Strategy and Management-JBHi-Fi

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JB Hi-Fi is a publicly listed Australian retailer that sells and specialises in consumer goods. JB Hi-Fi has locations in Australia and New Zealand. The company is based in Melbourne, with its headquarters located in Southbank.

Stock price: (ASX) $42.24 +0.73 (+1.76%)
26 Jun, 4:10 pm AEST – Disclaimer
CEO: Richard Murray (1 Jul 2014–)
Founder: John Barbuto
Founded: 1974, Keilor East
Subsidiaries: The Good Guys, JB Hi-Fi Group (NZ) Limited


An overview of JB Hi-Fi

The organisation was established in 1974 and legally registered as a discount retailer for hi-fi equipment and recording music. After that, the firm has started a store rollout programme in most of significant Australian cities.

After successful sequence, the firm has joined the Australian Stock Exchange as JBH name in October 2003. In order to expand the business, November 2016, the firm bought The Good Guy successfully.

Now, they own more than 300 stores in different cities in Australia and New Zealand.

Report assumptions

There are some assumptions in this report because of limitation of data’s validity, availability. Firstly, in analysing the business environment, actually the analysis can be access in both macro and micro economic environment.

However, this report has its limitation so that only micro economic environment related to JHB is concentrated by using SWOT method. Secondly, in assessment maturity model, there are many tool kits to support the assessment.

Choosing Luftman’s model is subjective from academic resources.

Further more, there are many elements or requirements within the model to assess each level; however, this report just concern about the general key points that can apply to feasible context.

Thirdly, there are many methods for change resistance; however, this report focuses on the most common method that can apply to JBH.

Organisation’s competitive environment

Tools are one of the significant factors that involves in the information strategy management in an organisation (Galliers & Leidner 2003).

These authors have pointed out that SWOT analysis (Johnson & Scholes 1989) is one of the mentioned tools to analyse the business environment.

Therefore, in order to analyse the competitive environment of JBH, this tool uses four dimension including strengths, weaknesses, opportunities and threats.

  • Strengths

JBH has gained prominent strengths in the business market (JBH’s annual report 2017).

Firstly, the firm has well known as a low price retailer that provides many best brand names with the best offer for product price when comparing in the market.

Secondly, bulk purchasing power and delivering directly to each store from inventories without distribution centres have created advantage for them to conduct low cost of products strategy.

Thirdly, a specialist product range has been different from other competitors in the market. Lastly, one of the lowest rent costs in the industry is JBH.

In addition, the good position of their shop attracts high volume of customers.

  • Weaknesses

In contrast, there are still some considered weaknesses that exist inside JBH (JBH’s annual report 2017).

Firstly, obsolescence of electric products brings a high risk for consumer when new kind of product enters the market increasingly and frequently. Thus, JBH has to offer discounted prices on these products that lead to reduce margins.

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