Harvey Norman Business Evaluation Essay


Business Summary3


Current Proper Position4

Physique One: Economic Analysis pertaining to Harvey Norman5

External Factors6

PESTLE Analysis6

Economic Forces6

Technological Forces6

Political-Legal Forces6

Ecological/Environmental forces7

Socio-cultural forces7

Porters Five Forces7

Physique Two: Porters Five Forces7

Figure Three: External Factor Analysis Summary8

Internal Analysis8

Figure Four: Internal Factor Analysis Summary9



Executive Synopsis

Harvey Grettle Holding Pty Ltd (HNH) in Summer 2012 provided a net profit of $227. 41 million, a decrease of 39. 2% from your previous 12 months (HNH Twelve-monthly Report 2012). Clearly the organization was not getting together with the increasing demand in the retail consumers, that were becoming more and more savvy and expecting more specification through on-line purchasing and a getting in-store experience (Baird & Kilcourse 2011).

Sluggish off the mark, HNH finally recognised the potency of online platforms and its affect as a product sales channel it invested seriously in the fiscal year of 2012 to build up an integrated full, franchise, real estate and digital operations having its release from the Omni-Channel Strategy. Online sales have been low as initially predicted, within just HNH launching it has been set up for upcoming gain (HNH Annual Report 2012). Nevertheless , the price tag industry would argue that HNH has not simply been slow in changing the with retail environment, it has as well failed to understand that it is new technique will only treat some of the business concerns, labelled having a poor consumer focus and in store service (Reidy 2013).

Using Protegers Five Pushes analysis HNH faces excessive threats from rivals within the market, rivalling with popular brands like Myer and savvy businesses that have appreciated change just like JB HiFi whom integrated its online experience five years ago (Reidy 2013; Wheelen & Hunger 2012). HNH also confronts threats coming from consolidation of suppliers as well as the infinite choices online offering the consumer with greater understanding and expectations (Wheelen & Hunger 2012).

Although both its internal and external aspect analysis have indicated that HNH can be rated substandard, it has to be able to pull alone out with this business rut, as a result of its strong marketing position and asset basic. To once again be competitive within the market place it is recommended that HNH not only embraces it is online technology, but likewise looks to update its proper vision, purpose and beliefs in line with Omni-Channel Strategy, along with executing ongoing consumer reviews, looking to improve it is lean procedures within its supply cycle, improve its marketing and advertising approaches and look at exploring fresh market possibilities.


HNH Holding (HNH) is one of the greatest retailers in Australia and operates through a mix of company controlled stores and franchise operated stores. It currently provides 213 franchised stores nationwide and 76 company-operated stores HNH possesses a thirdВ of its retailers which it leases to franchisees and offers them companies in return for a percentage of product sales (HNH Gross annual Report 2012).

In fiscal year of 2012, HNH approved a new strategic way of integrate the retail, operation, property and digital businesses into an " Omni-Channel” Strategy (HNH Annual Record 2012), which usually promises consumers a seamless on and off line shopping experience and features seen many of the top full brands shift for a ‘competitive advantage' (Baird & Kilcourse 2011).

This kind of report will give you an internal and external research into HNH's change in tactical approach, it is current positioning and recommendations for future strategic growth.

Current Strategic Situation

HNH's decision to adopt an Omni-Channel approach in 2012 left a need to mitigate a few of the damaging earlier business decisions and to adjust to the changing retail landscape. Sales fallen...

References: Anonymous 2011b, 'Social Media Community Forum; Retail Brands Research Social Buying Trends for Social Media Community Forum European countries 2011 ', Marketing Every week News, s. 1026.

Baird & Kilcourse, 2011

Collis, D J & Montgomery, C A 2008, ‘Competing on resources', Harvard Business Review, July-August, pp