Why is JB Hi-Fi facing pressure from new market entrants, and how can it respond effectively?

Why is JB Hi-Fi facing pressure from new market entrants, and how can it respond effectively?

JB Hi-Fi is in a very competitive retailing space, and new players constantly disrupt the market with new business models, cheaper prices, or online platforms. These new players tend to use e-commerce and direct-to-consumer models, without the cost of physical store space. This puts pressure on price for JB Hi-Fi and has them needing to deliver more value to customers in order to stay in the game. Students tend to have trouble understanding how a large brand such as JB Hi-Fi can still be "threatened" by new or smaller brand players, but it's about innovation pace and price elasticity. To counter, JB Hi-Fi can draw on more online strengths, invest in data-led marketing, enhance in-store customer experience, and diversify product ranges. Strategic partnerships and limited-edition product releases could also serve to keep customers engaged. Understanding this allows students to understand that brand size ain't everything, flexibility is the name of the retail game.

 

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