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JB Hi-Fi
JB Hi-Fi

Electronics / Consumer Electronics and Retail

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Risks

1. 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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