Harvey Norman Essay Example

operates as a franchisor, retailer, and property corporation. The diagram illustrates the geographical distribution of Harvey Norman's owned and franchised stores as of June 30, 2011.

Harvey Norman Holdings, a prominent retailer in Australia, specializes in furniture, electrical appliances, and computers. With a market share of nearly 20%, the company operates 213 franchised complexes across Australia as of December 31, 2012. Over the years, Harvey Norman has rapidly expanded its international presence, with company-owned stores in New Zealand (approximately 70 shops), Ireland (14 stores), Malaysia, and Slovenia (3 stores).

Harvey Norman Holdings Limited engages in franchising, integrated retail, and property growth. HVN operates through a franchise scheme in Australia and also controls shops in overseas markets. In the challenging retail climate of the past decade, Harvey Norman has confidently increased its market share in the home entertainment and technology sector, while competitors have been forced to close their doors.

Harvey Norman offers interior flooring designs for customers and a wide selection of handcrafted Australian Made furniture. Customers can choose from different styles, fabrics, and leather options. With excellent upholstery, structure, and resources, Harvey Norman guarantees luxury and comfort that will last for many years.

(Source: Harvey Norman action plan 2012 p.5)

When examining Harvey Norman's competition, there are two distinct groups in the market space: online competitors in the E-commerce Market and offline competitors in the Marketplace. One of Harvey Norman's key rivals is JB Hi Fi, an Australian-based prominent electronics retailer. JB Hi Fi focuses on everyday low prices as their main strategy and offers a wide range of products such as Music CDs, Games, DVDs, Computers and accessories,

Mobile phones, and appliances. Another significant competitor under Woolworth Limited is Dick Smith, which operates as an electronics retailer in Australia. Their product selection includes audio devices, mp3 players, TVs, computers DVD players gaming consoles mobiles phones and more.

The main strategy of Dick Smith is to offer price matching and provide technical experts and mobile services in-store. When comparing Harvey Norman to its competitors, there are some key points to consider. One common threat is that customers are spending less and online competition is increasing. Harvey Norman can be considered a price setter, while JB Hifi and Dick Smith have price comparison policies. Harvey Norman has a larger range of products compared to its competitors, but it does not have a home brand like Dick Smith Electronics.

A PEST or PESTEL study is an effective way to analyze the external (macro environment) forces that may impact a company. These forces can create opportunities and threats. The aim of conducting a PEST analysis for Harvey Norman is to gain a comprehensive understanding of the company's surroundings.

The political environment affects the current administration in a specific country's region, where products are manufactured or traded, and laws govern both the domestic and international markets. Political changes can greatly impact companies, including Harvey Norman. In comparison to its competitors, Harvey Norman pays higher taxes to the government and receives significant support from the government.

Harvey Norman experienced a substantial increase in net profit, from $172.5 million to $252.3 million, in 2011. This rise can be attributed to the decline in customer spending habits during that time period, which greatly affected the company's revenue.

While furniture and bedding sales remained strong and contributed significantly to their earnings, there was a decrease in sales within the electrical and computer department, resulting in an overall negative impact on revenue.

Harvey Norman is a prominent force in the Australian consumer products industry and has a significant impact on the country's economy. As one of Australia's largest companies, it affects the lives and living standards of people both within the country and in all areas where its stores are located.

Initially, Harvey Norman did not prioritize its e-commerce business. However, due to increasing customer demand for online purchasing, the company shifted its focus towards e-commerce. The website www.harveynorman.com.au has become popular among consumers as a convenient and preferred buying tool that offers discounted prices and ensures ease and convenience in shopping. The main reason for this change was to allow consumers to purchase items at lower costs. By using e-commerce, Harvey Norman can avoid expenses related to distributing goods from the warehouse to physical stores, effectively saving consumers both money and time.