MKTG3023 Strategic Marketing

The aim of this paper is to identify the competitive advantages of JB HI-FI. An organisation market strategy combines all of its marketing goals into the one major plan. Marketing strategy helps the company to drawn the market research and focus on the product mix to attain the maximum profit and sustain the business. JB HI-FI made market strategy to gain the competitive advantage with the help of sources. 

JI HI-FI is an Australian retailer of consumer goods; it is operating in video games, Ultra HD Blu-rays, DVDs, CDs and home appliances. The company established in 1974 and earn $150 million in a year.  The company is popular for its Hi-Fi equipment, it operates in many countries and its headquartered established in Melbourne and the company expand its business in New Zealand. JB HI-FI gained the competitive advantage of its cost structure. The company always satisfy the consumer demands at a cheaper cost. The company offers the home entertainment and electronic goods at the lowest prices as compared to the competitor's company.  JB HI-FI gains the advantages with the help of sources these are a national difference, scope economies and scale economics (Wagner & Hollenbeck, 2014).

JB HI-FI is expanded its business in New Zealand, the company takes the advantage by establishing the company in New Zealand because New Zealand is near Australia. It is easy for the company to know the consumer demand. The company can easily follow the traditions and custom for making the sale in the market. It has been analysed that the company gains the competitive advantage by reducing the cost and increasing the scale of production. By following the culture and tradition of the country, company made the policy which helps the company to achieve the competitive advantage. The company provides the product at the lowest price by decreasing the production cost of the production

It has been seen that the per capita income of the market is decreasing, at this time the company gained the advantages by selling the product at the lowest amount. The company has the good image in the market. The company introduces the new products with new features which attract the consumers. In 2013, company sales are $3.3.1b and in 2017, it extends with $ 5.63b. The company earns 22.4% profit in a year which is beneficial for the company to earn the good image in front of the consumers (JB HI-FI Limited, 2017).  It justified that the company made the good image in the market by selling the product and introduces the new features in the product at the cheaper prices. JB HI-FI is a leading company of Australia and it is well known for its services (JB HI-FI Limited, 2017).

The company sale is increased by operating in the many locations like Australia, New Zealand. By increasing the sale, the company gross profit is also increased by 11.7% to $922.8 million. The company has 303 stores in Australia and New Zealand (JB HI-FI Limited, 2017). The company provides the product at a cheaper cost from which consumers attracts towards the company. It justified that the company operating in many locations and earns high profit. Operating in many locations means increasing sale of the company and profit.

The company gains the competitive advantages by following the strategies objective such as open new stores, decreasing cost and others (Baker, & Sinkula, 2015). By opening the new stores, the company can achieve the high growth of the sales and profit. The sales of the company are increases by opening the new stores and target the new consumers at every location. New opening stores are the strategy of the company to achieve the competitive advantages. It justified that the manufacturing firms of the electrical appliances are increases which increase the competition of the company. By opening the new firms, the company can gain the market advantages. New stores growth at the good times that increases the profit and margins (Darroch, Milesand, & Jardine, 2015).

JB HI-FI Company offers the integrated product and services to the business, government and education sector which increase the sales through organic growth and strategic. By offering the integrated product, JB HI-FI promotes the product and makes the good image in the eye of consumers which increase the sale of the (Ottman, 2017).

Adaption is also a strategy for the company to achieve the competitive advantages of the company. By adopting the new technology the company decreases the cost of the production and the company attracts the customer by selling the product at the lowest cost. It is the reason that the new technology decreases the labour work which decreases the cost of the company. The company can save the amount thus, the company offer the new product at the cheaper price as compared to the competitors (Rezac, Huang, Hobza, & Beran, 2015)

From the above analysis, it is concluded that JB HI-FI Company attains the competitive advantage of its cost structure. The company offers the product at the lowest cost as compared to the competitor. The company attains the competitive advantages with the help of national differences, the scale of economies, and scope of economies. By making the strategies, the company can achieve the competitive advantages. Adaption, new stores, and the integrated product are the strategies which are used by the company to attain the advantages.

References

Baker, W. E., & Sinkula, J. M. (2015). Maintaining Competitive Advantage Through Organizational Unlearning. In Proceedings of the 1999 Academy of Marketing Science (AMS) Annual Conference. New York: Springer, 206-209. 

Darroch, J., Miles, M. & Jardine, A. (2015). Market creation: a path to sustainable competitive advantage. In  Proceedings of the 2008 Academy of Marketing Science (AMS) Annual Conference. New York: Springer, 331-331.

JB HI-FI Limited. (2017).  About us. Retrieved from: https://investors.jbhifi.com.au/annual-reports/ ARN from IDG Ottman, J. (2017). The new rules of green marketing: Strategies, tools, and inspiration for sustainable branding. Oxon: Routledge.

Rezac, J., Huang, Y., Hobza, P., & Beran, G. J. (2015). Benchmark calculations of three-body intermolecular interactions and the performance of low-cost electronic structure methods. Journal of chemical theory and computation, 11(7), 3065-3079.

Wagner, J. A. & Hollenbeck, J.  R. (2014). Organizational behavior: Securing a competitive advantage. Oxon: Routledge.