Essays on SWOT Analysis of Harvey Norman Holdings Limited Case Study

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The paper "SWOT Analysis of Harvey Norman Holdings Limited" is a perfect example of a business case study.   Harvey Norman has had the desire to remain both profitable and competitive in the market since its foundation in 1982. There have been rapid growths in the company despite the various challenges the company has faced. In presenting the Harvey Norman business model, this report analyses the internal and external environment in which the company operates. The purpose of this case study report was to carry out a SWOT analysis and Porter’ s five forces model analysis of Harvey Norman Holdings Limited.

It further gives the company’ s financial information and outlines the recommendations to be undertaken so as to provide possible courses of action to remain competitive in the changing market. Carrying a SWOT analysis helps in describing the internal and external environments. The company’ s numerous assets and strategy form its strengths while its experience with the external environment forms the opportunities. Among the challenges, it faces include competition and threats from the internal and external environment. Porter’ s five forces analysis subjects Harvey Norman to the scrutiny of its relation with other participants in the industry.

The analysis indicates intense rivalry in the industry, high bargaining power of buyers, the high bargaining power of suppliers, no effect caused by substitute products and less threat posed by the new entrants. The SWOT and Porter’ s five forces model analyses help in understanding the competitive position of Harvey Norman within the Australian retailing industry. They provide an in-depth strategic analysis of the company as well as its operations. Introduction The global market changes and challenges have greatly impacted on the Australian retailer, Harvey Norman and the general industry under which it operates.

The company has worked forward to overcome these challenges by adopting various strategies through which they can extend their market segment and attract more customers. Moreover, they have lowered the prices and increased the overall quality of their products as well as their capital base. This, in turn, makes it difficult for new retailers entering the industry with significant leaders who have developed competitive productivity. The company utilizes the opportunities ahead of them to market and deliver their products and services so that it can be successful in the long run.

This case study report analyses the internal and external environment of Harvey Norman by conducting a SWOT analysis and Porter’ s five forces analysis. Prior to the analysis, a brief company overview shows the kind of businesses, product and services the company deals with and identifies the regional areas in which the company operates as well as its various stores. The financial information then follows as well as the appropriate recommendations that can be taken to improve the overall competitiveness based on the two analyses. Company overview The Australian retailer, Harvey Norman Holdings Limited, operates as a franchise and property company serving department stores worldwide.

The company sells products in various categories, including furniture and beddings, computers and communications, TV, audio and gaming, portable electronics and home appliances in Australia, Asia, New Zealand and Europe (Yahoo Finance 2011). It was founded in 1982 with its headquarters located in Homebush West, New South Wales. The company which is listed on the Australian Securities Exchange under the code HVN employs around 4,700 people. As of June 30, 2010, Harvey Norman Holdings Limited operated 70 owned stores and 194 franchised stores.


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