Essays on Harvey Norman Marketing Analysis Case Study

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The paper "Harvey Norman Marketing Analysis" is a perfect example of a marketing case study.   Harvey Norman is a major franchisor with many franchisees operating in several regions such including Australia, New Zealand, Malaysia, Singapore, Slovenia and Ireland among others. This paper presents both the background information about the business of HVN through SWOT analysis, BCG analysis and porter’ s analysis. This information gives an insight into what Harvey Norman should do in order to be sustainable in its market niche. Recommendations on information that HVN should seek in order to clearly understand its business needs are also highlighted with the aim of providing recommendations. SWOT Analysis Strengths Harvey Norman has a strong brand name in Australia and thus undoubtedly the best and a market leader (Greenblat 2010).

The company’ s financial strength and position in the market are also one of its major strengths. In the year ended 30 June 2010, the company had profit before tax of about $314.17M as compared to $308.06M the previous year (Greenblat 2010). The franchisees continually gain market in all areas and hence a significant boost for the company (Greenblat 2010). HVN is flexible and thus adjusting to market changes, it also operates as a franchiser with many franchisees operating different products and hence creating specialization which focuses on customer needs.

With more than 230 stores and about 4,691 employees, Harvey Norman has strong human resources and assets in terms of many stores that can be turned into cash (Greenblat 2010). Weaknesses The company overlies on Gerry Harvey its chairman (Macquarie Private Wealth 2010). This contributes to the board lacking independence and hence forming a possibility of wrong decision making (Macquarie Private Wealth 2010).

The pricing of the company is high and customer handling is also poor and hence affecting customer’ s perception about the company factors that could prove detrimental in the future (Macquarie Private Wealth 2010). Unequal improvement of segment operations affects the overall performance of the company (Macquarie Private Wealth 2010). Dealing with many franchisees also brings management and overseeing weaknesses that may result in decreased company’ s output. Opportunities Globalization will open new markets and hence more variations of offices and also consumers (Gummesson 2007). The products being franchised by Harvey Norman will be in the market for years to come (Gummesson 2007).

International expansion is a major prospective market which could double the earnings of HVN. It has started this by making an entrance into Ireland which will act as a launchpad towards the UK (Gummesson 2007). As evident by the NPAT increase by 8% to $231.41M for the end of year 30 June 2010, this increase was as a result of franchising improvement of segments operations which could also give the HVN a clue for increasing its overall performance in the future (Gummesson 2007).

Investing in large electronics in which customers are reluctant to buy from online retailers will result in a market increase (Buttle 2004). Threats The development of international trade will add new competitors and hence reducing the company’ s market niche (Buttle 2004). If Gerry Harvey steps down; the management of the company may be affected. More so, the global economic decline may affect the company’ s business as evident in the 2008 to 2009 recession that saw the sales of its product decline by 40 %(Buttle 2004).


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