JB Hi-Fi
JB Hi-Fi
JB Hi-Fi
A Business Model To
Survive And Thrive
By Steve Barrile
Teacher of Business Management at Fitzroy High School, consultant, writer and publisher
Introduction
Company Snapshot
STUDENT ACTIVITIES
NSW: Eastgardens, Moore Park, Top Ryde, Sydney CBD, Albury, Wollongong, Artarmon
VIC:
WA:
141
123
89
10
15
21
26
Acquired
2001
2002
2003
July 200
32
2004
48
2005
Total Stores
Source http://www.jbhifi.com.au
~7~
105
66
2006
2007
2008
2009
2010F
obligations (it does not own the bricks and mortar stores) and
would carry large retrenchment commitments if things went
wrong. However through its very positive sales growth over
recent years it has passed the stress test with the injection of
funds these sales have generated allowing debt to be reduced and
allowing company growth. Risk becomes low and manageable.
STUDENT ACTIVITIES
References
Drift To Thrift
STUDENT ACTIVITIES
Further Activities:
(a) Evaluation and Analysis
1. Go to <www.jbhifi.com.au> and select Corporate. Now select
Reports to read more about JB HI-Fis financial performance
in recent years. Suggest three financial and three non-financial
performance indicators that the business could use to evaluate the
success of the business in the coming 12 months.
2. JB HI-FI operates in an environment with many external factors
outside the businesss control. Describe how external factors like
the economy, technology, changes to the law and environmental
factors could have an impact on a home retailer like JB HI-FI.
3. The Global Financial Crisis (GFC) had a big impact on the
performance of businesses all over the world. How did JB HI-FI
perform during the GFC?
4. As a result of the GFC, many consumers are becoming thriftier
and like to shop around for the best deals. What implications will
this have on the business model of JB HI-FI?
(b) Application and Extension
1. JB HI-FI has made their name by promoting themselves as
offering low prices. Prepare a table that compares the prices of
the following products: (1) The iPod Touch 8GB, (2) Panasonic
42 inch plasma television and (3) Garmin 4.3 inch Portable
Navigation system. You should compare JB HI-Fi with Harvey
Norman <www.harveynorman.com.au> and The Good Guys
<www.thegoodguys.com.au>. Comment on your findings.
2. As a publicly listed company it is possible for anyone to buy
shares in JB HI-FI. Prepare an investor fact sheet that summarises
important information for potential investors such as the
number of employees at JB HI-FI, the number of stores, level of
sales, products sold, current share price and any other relevant
information you think an investor would want to know.
Low cost
Low risk