Marketing Channels of a Consumer Electronics Retailer in Australia -Solved Solution Sample



Analysis of the Marketing Channels of a Consumer Electronics Retailer in Australia. The objectives of this assignment are for you to be able to:
 Engage in an extensive and relevant strategic analysis of a Consumer Electronics Retailer in Australia;
 Utilise the tools of analysis from lectures, prescribed text, and readings;
 Produce a cohesive analysis, and present a meaningful conclusion;
 Use consistent and appropriate style of presentation.
Word Limit: Up to 2,000 words maximum (excluding Appendices and References)
The analysis should be in a business report format and correctly referenced. Please refer to the report outline provided at the end of this Assignment and the detailed marking guide attached to this brief.
Key Requirements:
Select one of the following Consumer Electronics Retailer in Australia:
1. JB Hi-fi
2. Good Guys
3. Bing Lee
You will find details about this industry from the following IBIS Report: OD5241. Also, you will find details of the selected retailer from its website.
Analyse the marketing channels of the selected Consumer Electronics Retailer and address the following:
• The main broad categories of products sold by the selected retailer;
• An analysis of the major participants in the marketing channels of the selected retailer outlining the intermediaries from suppliers to end users;
• The impact of the economic, competitive, sociocultural, technological and legal environments that channel managers of the selected retailer need to consider. Also the opportunities and threats to this industry.
• Critical analysis of the main strengths and weaknesses of the channel strategy and design of the selected Retailer.
• Brief recommendations for future channel strategy and conclusion.

Outline of the Report for Assignment
1. Introduction: Here briefly introduce the reader as to the purpose of this report.
2. Background: brief description of the selected organisation and its main broad categories
of products. Also the major participants in its marketing channels.
3. External environment impacting the channels of the selected organisation. Also elicit
relevant opportunities and threats.
4. Strengths and weaknesses of the channels of the organisation.
5. Discussion and Recommendations
6. Conclusion
List of References (a minimum of 10 references)





The business report deals with the best company of Australia named JB Hi-Fi. It will discuss about the company JB Hi-Fi and the wide range of products they sell in their business market. It will also critically analyze on the chief participants of the respective company in the marketing channels of the JB Hi-Fi. It will also outline the broker from suppliers to customer. It will also illustrate about the PESTEL analysis of the company that channel managers of the JB Hi-Fi is needed to considered. It will also discuss about the opportunities and threats of this industry. It will also critically explain the SWOT analysis of the channel strategy of the company. At the end of the report, it will provide some recommendations for future channel strategy.

JB Hi-Fi

Mr. John Barbuto was a successful entrepreneur and was the founder of the company JB Hi-Fi which was established in the year 1974. The business was started with a store in Victoria at the East Keilor. He had started his company with a clear and comprehensible philosophy which refers to distribute anexpert span of audio-recorded music in Hi-Fi at the reasonable price in Australia. In the year 1983, this business was vended and nine shops were established of Hi-Fi by the year 1999(,2019). The private equity firms or investors as well as the senior managers have purchased the company, JB Hi-Fi in the month of July in 2000 with the goal of pursuing prosperous miniature company and spread its wavelength nationally. In 2003 in the month of October, the company was drifted towards the market of stock exchange in Australia. Hence the philosophy of Barbuto became true as the JB Hi-Fi became one of the fastest moving and the vast retailer of home theatre. JB purchased a range of stores of Queensland Clive Anthony in the month July in 2004 that sells electronics good for consumer, domestic electronic goods, appliances that are used for cooking as well as air conditioning. These stores have now been changed into JB Hi-Fi shops for home stores and in these stores it can be found other surpluses of JB and all. The stores of JB provides computers, Tab, Televisions, high fidelity speakers, digital cameras, home entertaining products, stacks and so on of the leading company of the world. It also provides latest and largest varieties of games, DVD cinemas, Blu-Ray, shows in TV, and all at an affordable price. In short, this company has all best quality company products, vast varieties, affordable cost, suitable places but most significantly authentic unique service from its talented professional staff.

Major participants in the marketing channels

The supply chain channels of JB Hi-Fi are malleable in their process of their activities through incorporating the supply of products from bringing the products from foreign countries and from regional suppliers. The supply chain of the organization is famous and the supply chain of this organization is well stock with the administrative purchasing authority program. The whole system and procedures of the supply chain is controlled by real time tracing infrastructure that permit higher and faster data availability and thus these system and data helps to analyze in the process of making decision. The leaner as well as the supply chain channel operates at more productive and more rapid speed which provides goods at correct time and also deduct the whole price sustain on the management of logistics(Nilsen,2017). The reputed and branded company, JB Hi-Fi specially relies upon the product supply from foreign country in regarding to keep their capital of working as well as to reduce the interest rate. The supply chain helps to present the products in correct time boundary from the company that are present in abroad that have chosen their agents in approximately in all over the countries of the world from whom they purchase goods. Hence such products that are purchased from the foreign countries are of best quality and high ranking products and thus it also terminate the middle person or regional distributors (Larsen,2017).

JB Hi Fi has four primary stores that operate to keep the trace on the supply of products, it keeps stocks on the floor, communicate within the channels and others, provide service to the customers and assessment on store (Fatehi, and Choi,2019). The function of the online retailer of JB Hi-Fi is to manage stock for quick as well as timely delivering of products from the store. The company also keeps their electronic product in their big warehouse with tag on the products and also controls the delay of transportation of goods from one region to another region. The whole procedure is maintained by the device to trace the process on the basis of real time and hence there is no holding of goods (Macdonald,2018). The company also keep good network of communication in between each and every levels of employees for productivity supply of goods to their worthy customers in little time as possible (Benzo,Mohsen and Fourali,2017).

External factors of JB Hi-Fi

Through the analysis of PESTEL, the management5 of the company can create a better decision as it is a tool of strategic management. It includes certain external factors that are implied on the abbreviated word of PESTEL and that are discussed below:

Political factors

The new policies of the Australia’s government can enhance the expenditure sentiment on the sector that provides services. These policies provide the widespread approval among the people of the nation; hence it is secure to presume that the time span of such policies will be longer the law term of the recent government of Australia. The company have function in various countries and hence the company have to make their own policies according to the policies of other countries as per the particular requirements on the retail as well as technology industries the company has to keep their focus on the priorities of the government of global industry in order to predict fashion and trends (Grünig and Morschett, 2017). The regional government plays an important role in making policies in Australia and thus the company has to follow the norms of the states and its territories that the company is present.The company has to maintain the regulations that are changing in Australia in the electronic as well as retail sector. The Australia’s government has come under the worldwide and international pressure that is abided by the WTO’s regulations on the industry of retail and technology.

Economic factors

The unstable rate of exchange in Australia can create an effect on the expenditure plans of the company not only for the shorter period but also for the longer period of time. The company can operate on the dynamic markets of finance as well as effortless availability of liquid in the market of equity of Australia for expanding the company globally. The accessible income of the consumer has remained in the stable state, the developing social inequality will create a negative effect on the sentiment of the consumer and hence it creates an effect on the behaviour of the consumer. The expertise level of the employees in the human resources in the country Australia is average to high qualified in the sector of service (Benzo, Mohsen and Fourali, 2017). The company can grasp it to enhance the services within the country as well as it can grip the expertise work power to build international and widespread opportunities. The mediation of the government in the sector of services as well as in specific retail of the technology firm can affects the future plans of the company in Australia. By maximising relaxation in the policy of trade in Australia can aid the company to expend in future into locality that is far off within the limits of the industry.

Social factors

The company has demographics on the side of the company for its services. As the country Australia is a juvenile country and developing as well, the company can utilize this preference and fashion to serve to multiple section of the population. From the past decade in Australia, the wide range of population are getting easy approach to important services and thus this reason has been a outcome of maximising expenditure in the services of public. The consumers in the country have been given first preference to products regarding experiential other than traditional value scheme in the sector of service. The company can serve this preference to construct the goods that give improved experience of the customer.

Technological factors

In the field of services there are no exact practice of transfer of Technology as organisations are always worried that with technology transfer they may give birth to a competitor. Now JB hi fi as an organisation ice created various latest technologies and Technology based innovation does putting a good idea about what the competitor are thinking and about the model future (Phadermrod, Crowder and Wills, 2019). JB hi fi health always(Mohammadi, and South, 2017). Rights and intellectual protection of the capital providing investors,the opportunity to invest in the new technologies to be developed at JB hi fi. Cost reduction also plays a major part in production.

Environmental factors-

Recycling is the most emerging form of environmental factor is it creates an impact on Australian economy. Apart from this management of waste in the cities also plays a part as environmental factors. Technology is considered as the most in important of all the environmental factors as it provides continuous investment field renewable sector are to be continuously developing thus resulting in the improvement of Australian economy(Demsar and Brace-Govan,2017).

Legal factors-

One of the most important legal factor which impact JB hi fi is the time consumed by the quotes for business cases that is it takes a lot of time to reach to a solution. Australian environmental laws and guide also need to meet the laws and regulation in that level. Legal protection of once patents copyrights for property also forms one of the factors that legally impact JB hi fi. Now due to who travel privacy issues the data protection law is one of the chief factor to impact JB hi fi as it helps protecting once acids and properties against any breach(Golev and Corder,2017).

Internal factors of JB Hi-Fi


  • Integration through and acquisition and other Technology based organisation to prioritise operation and build a proper strength and supply management chain and hence keeping a clear record of nearly hundred percent success (Darchen and Tremblay, 2015).

  • Development of brand new product that improving innovation.

  • Fruitful return on the expenditure of the capital.

  • Various training and learning programs resulting in a cutting edge workforce who are highly skilled.

  • Wide distribution network holding a lot of market thus creating reliability.


  • The company has not been able to adapt to the new technology transformation era trust lost few shares in the niche categories.

  • More investment in the new technologies are required which will provide wide platform for expansion.

  • The ratio of the profit to the total contribution is also below average (Connell, Agarwal and Dhir,2018).

  • Reduce product amount due to lack of marketing and lack of inventory stockings is also considered as a weakness.

  • Proper financial planning increasing the asset ratio with respect to liquid cash flow is also low.


  • Due to various taste of various customers a new market is always opening up creating many opportunity for organisations like JB Hi-Fi to create a revenue stream keeping up with the customer by introducing various new product categories as per customer requirements and usage.

  • Introducing new technology and products in the market can also lead to do various pricing of those products thus keeping the already existing loyal customers and bring in new customers maintaining a proper oriented proportion at the same time.

  • A proper market development will also lead to the improvement of the competitiveness factor in JB hi fi as it will almost nullify the competitors advantage.


  • Supply of newly developed and innovative products is considered as a major threat.

  • Different liability laws in different country provides different platforms to claim different liability factors.

  • Constant threat of lawsuits.

  • An intense competition resulting in variable profitability (Glowik, 2017).

Discussion and Recommendations

From the above discussion it is to recommend that the company can work on the issues related today adaptability to a new technology can be improved hence investing in the niche Technologies. Investing more on these Technologies can also help as it will create the platform for expanding of the organisation.

Improvement on the ratio of profit to contribution is a necessity. A proper threat management assessment is required timely to avoid any kind of impending lawsuit. Constant adaptation and improvement in current market and technology to keep up with the intense competition. Steady flow of raw materials and products to create innovative strategy of building new products and technologies hence keeping up with the new era.


From the above illustration of the report it can be concluded that JB Hi-fi should work on their strategies and strength simultaneously improving the weakness and making it into strength and nullifying the threats at the same time to remain at the top of the organizational food chain and the fierce competition in the market to always remain loyal to the customers and providing the products at a reasonable amount also maintaining the quality and tapping into the new age technologies so as to keep them updated with latest and modern practices to meet customer demands.

Reference list

Grünig, R. and Morschett, D., 2017. Developing international strategies. Springer Berlin Heidelberg.

Benzo, R., Mohsen, M.G. and Fourali, C., 2017. Marketing Research: Planning, Process, Practice. SAGE.

Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based SWOT analysis. International Journal of Information Management44, pp.194-203.

Darchen, S. and Tremblay, D.G., 2015. Policies for creative clusters: A comparison between the video game industries in Melbourne and Montreal. European planning studies23(2), pp.311-331.

Connell, J., Agarwal, R. and Dhir, S. eds., 2018. Global Value Chains, Flexibility and Sustainability. Springer.

Glowik, M., 2017. Environmental analysis. Global Strategy in the Service Industries: Dynamics, Analysis, Growth, p.16.

Nilsen, A.B., 2017. DELL: 2: 1 Convertible Notebook(Bachelor’s thesis, BI Norwegian Business School).

Golev, A. and Corder, G.D., 2017. Quantifying metal values in e-waste in Australia: The value chain perspective. Minerals Engineering107, pp.81-87.

Macdonald, S., 2018. High technology industry in Australia: a matter of policy. In The Development of High Technology Industries (pp. 223-261). Routledge.

Mohammadi, J. and South, W., 2017. Life cycle assessment (LCA) of benchmark concrete products in Australia. The International Journal of Life Cycle Assessment22(10), pp.1588-1608.

Larsen, A.I., 2017. DELL Technologies (Bachelor’s thesis, BI Norwegian Business School).

Fatehi, K. and Choi, J., 2019. International Environment and Strategy. In International Business Management (pp. 193-216). Springer, Cham.

Benzo, R., Mohsen, M.G. and Fourali, C., 2017. Marketing Research: Planning, Process, Practice. SAGE.

Demsar, V. and Brace-Govan, J., 2017. Sustainable disposal and evolving consumer–product relationships. Australasian Marketing Journal (AMJ)25(2), pp.133-140. (2019). Advertising & Marketing Enquiries | JB Hi-Fi. [online] Available at: [Accessed 30 Mar. 2019].

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