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JB Hi-Fi
Electronics / Consumer Electronics and Retail
At a Glance | Core Facts | Company Due Diligence | Industry Due Diligence | Competitors | Stock Swings | News | Income | Balance | Cash Flow | Growth | Enterprise | Ratios | Metrics | Dividends | Risks | SWOT | Porter's Five Forces | PEST | Score Positive | Clusters | Reports | Web1. Competition: other retailers, such as Harvey Normam and Myer, could engage in similar strategies, leading to a price war which could hurt JB Hi-Fi's profitability.
2. Low margins: as markets become saturated, discounts and other promotional activities may become necessary, which could diminish the company’s profitability.
3. E-commerce: JB Hi-Fi is at a disadvantage relative to online retailers due to its higher cost structure. As online sales continue to grow, this could affect profitability for the company.
4. Technological obsolescence: the rapid pace of technological change in the consumer electronics market means that JB Hi-Fi is exposed to the risk of being unable to keep pace with newer products, which could cause them to lose customers to competitors.
5. Consumer sentiment: the consumer electronics market is subject to swings in consumer sentiment, meaning that demand for products could suddenly evaporate, which could have a severe impact on the company’s performance.
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