Jbh Swot Opportunity&threats

JBH SWOT Analysis

When SWOT analysis is used in conjunction with PEST analytical model, some external factors that influence or will be crucial to a business’ performance are taken into account. These factors are relatively general and would affect the whole industry rather than a specific company.

Starting with political area, the most significant factor in this industry is that a reasonable time for warranty of products must be granted to all the consumers according to Australian Consumer Law (Commonwealth of Australia, 2013) and this may lead to really high provisions for warranty to prepare so that it is a threat to JBH.

As for economic area, one factor that contributes to an opportunity for JBH is that real household disposable income is expected to grow over 2014-2015 (IBIS World Industry Report G4221a) where higher disposable income would lead to higher demand for domestic appliances. Another opportunity comes from lower interest rates (refer to the monetary policy set by the Reserve Bank of Australia) those attract more spending and investment with lower borrowing costs. However, the fluctuation of exchange rates drive the prices of imported goods even higher for domestic companies as JBH and consequently they will gain lower profit margin, according to Stephen (2014).

For social area, an index that measures how people feel about their current financial situation and overall economic situations is the consumer sentiment index (IBISWorld), which is expected to decline this year. It means individuals would allocate less money to spend on domestic appliances.

Within technology concerns, frequent innovations in mobile industry such as the new 4G networks indicate a higher reliance on mobility and broader usage of mobile devices (IBISWorld). But, on the other hand, the unceasing renewal of these devices is creating vast losses for retailers holding out-of-date stuff, and so as to most appliances or electronic products.